Exclusive FNG interview… Following our exclusive report from last week that Finyard had just launched in Cyprus as a new provider of FX & CFD broker technology platforms – and had added several high-profile executives to its roster, including the former CMO of XM and Trading.com, Rachel Demosthenous, as well as the head of Exness Affiliates Sergey Yarovoy – we thought it would be a good time to meet Finyard founder and CEO Dmitrij Pruglo.
What does Finyard do?
How is Finyard different from Covesting, the other trading technology provider run by Dmitrij and Finyard co-founder Tim Voronin?
What are the company’s plans for 2024?
Here’s what Dmitrij had to say, exclusively on FNG.
FNG: Hello Dmitrij, and thank you for joining us today. Tell us a bit more about Finyard and what it provides.
Dmitry: At Finyard, we are very passionate about merging technology and finance. Our team consists of talented engineers, data scientists, financial market experts, product managers and marketers. Together, we focus on creating and launching cutting-edge fintech products. Our suite of offerings spans from back-office systems, checkout, order matching and trading engines to dynamic customer areas, mobile applications and web interfaces. It is an ecosystem of different tools and services that are fully customizable and can be developed with any brand.
FNG: You and Tim Voronin ran Covesting together for the last few years, and now Finyard. How does Finyard differ from what you’ve done in the past as far as Covesting?
Dmitry: Covesting first appeared as a cryptocurrency platform under the proprietary COV utility token. In 2018, we committed to pioneer a copy service for the crypto trading sector and we succeeded. Our team successfully developed and launched the Covesting peer-to-peer exchange module, combined with COV token features that unlocked various benefits for token holders. This module was integrated into a third-party margin trading platform through a B2B partnership.
Additionally, we were among the first companies to receive Gibraltar’s DLT license, enabling us to operate as a spot exchange. However, due to changes in the crypto industry—reduced global demand for crypto services, reduced trading volume, and increased competition—we have chosen not to continue our operations as a cryptocurrency exchange.
While we remain committed to the development and support of the Covesting replication platform, we have also decided to explore additional directions in software development beyond the realm of cryptography. This led to the founding of Finyard.
FNG: In your view, what do retail FX & CFD brokers do well and in what areas do they need to improve? How does Finyard fit into this?
Dmitry: In my opinion, the majority of FX & CFD brokers lack significant technological advancement. While the DLT space consistently introduces many new technologies, blockchains and products annually, the product vision of Forex and CFD brokers often remains limited to MT4, a few payment providers and a call center, stopping innovation in its tracks.
Consider the strides the DLT space has made in recent years—NFTs, conversions, numerous DApps that provide a variety of services, and the entire realm of decentralized finance, offering innovative avenues for saving, generating passive income, lending, and more. Although the crypto space has its downsides, it is arguably outpacing the FX & CFD space in terms of speed and innovation, which currently seems a bit antiquated, similar to Windows 95.
At Finyard, one of our primary goals is to bridge this gap by innovating traditional finance. Our goal is to develop products that revitalize the outdated TradFI industry. We envision the potential for AI-based advisory services, dynamic user journeys/product funnels, and the contribution of traditional assets such as stocks and bonds.
FNG: What changes in the “industry” do you see unfolding in 2024? How must brokers adapt to these changes to survive and thrive?
Dmitry: I expect intense competition within the industry, forcing legacy brokers to finally align with technology trends. Otherwise it could lead to their disappearance from the market within the next five to ten years. This urgency stems from the expectations of today’s generation, accustomed to sleek product interfaces, inclusive services and stress-free experiences.
Global adoption of investment services is on the rise, attracting a growing number of people interested in wealth and investment applications. However, these newcomers are looking for easy, intuitive products that make it easy to get into investing with minimal prior knowledge. Currently, the majority of platforms available in the market are overly technical, cluttered and lack user-friendliness. Brokers must shift to offering more intuitive and user-centric experiences to meet this emerging demand.
We are seeing a growing trend of neo-intermediaries, similar to how neo-banks have transformed our everyday banking experiences. These new brokers have the potential to democratize the investment space.
FNG: We recently posted about Finyard adding some pretty experienced FX industry executives like Rachel Demosthenous (ex-XM / Trading.com) and Sergey Yarovoy (Exness). What else can we expect to hear from Finyard in the new year?
Dmitry: We will continue to recruit in 2024 as we aim to build an extremely strong team. I believe that if you have a team of highly intelligent, motivated, forward-thinking and experienced people – there is no goal that cannot be achieved.
Both experienced executives and young talent are drawn to Finyard for two reasons:
1) Innovation and interesting challenges they see on our roadmap.
2) Ability to have real impact while having a significant percentage of ownership (in decision making) that we provide them.
In 2024, our product line has numerous initiatives. However, our primary focus remains on cementing Finyard’s reputation as one of the most sought-after workplaces for people passionate about technology and finance. We encourage those who think outside the box and prefer breakthrough innovation rather than following the status quo.