Citi launches automated securities lending solution for private investors
14 May 2021 Singapore
Image: stock.adobe.com/fazon
Citi has partnered with fintech firm Sharegain to launch a custody services-facing securities lending solution.
Designed for the global wealth management firms that Citi caters to, the fully automated securities lending solution means clients will not have to develop an internal programme themselves.
Sharegain鈥檚 technology allows customers of wealth management firms to decide on the securities they wish to lend, set the terms of the loan, and recall the security at any time.
While holders of securities can earn additional revenue on their stocks, bonds and exchange-traded funds, it is usually only viable for large financial institutions, such as asset managers, due to economies of scale, high costs and the complexity of implementation.
The solution is designed to integrate with existing IT infrastructure and provides a fully digital user experience, providing the information and controls needed to manage portfolios.
As the result of a partnership between Citi Ventures and Citi鈥檚 Agency 网爆吃瓜 Lending business in Asia Pacific, the solution 鈥� born out of strategic growth programme Citi Ventures D10XSM 鈥� opens up opportunities for smaller players.
The Singapore-headquartered D10x team collaborated closely with Citi鈥檚 ASL business in prototyping, testing and launching the product.
Citi Ventures鈥� head of programs and strategic partnerships Victor Alexiev says: 鈥淭his is a stellar example of business-aligned product innovation and cross-franchise cooperation which brings out the best in the depth and breadth of Citi's products and service offerings.
鈥淲ealth and retail clients in Asia have traditionally been experienced investors and the demand from them for products that are largely only available to the institutional market, such as securities lending, is expected,鈥� Alexiev adds.
Citi鈥檚 Asia Pacific head of agency securities lending Eusebio Sanchez says: 鈥淲e are delighted to have brought this solution to market in collaboration with Sharegain and our wealth management clients, providing private investors access to the securities lending markets and thus, levelling the playing field.鈥�
Sharegain CEO Boaz Yaari says: 鈥淲e are excited to work with Citi to bring this first-of-its-kind solution to their clients and to set a new standard for our industry. This collaboration is a testament to the power of Sharegain鈥檚 solution and its potential to democratise securities lending.鈥�
The automated lending solution comes after Sharegain launched BetterLend earlier this week. The new platform supports social and environmental causes through securities lending activity, allowing clients to assign a percentage of lending revenue to up to four social and environmental initiatives.
Designed for the global wealth management firms that Citi caters to, the fully automated securities lending solution means clients will not have to develop an internal programme themselves.
Sharegain鈥檚 technology allows customers of wealth management firms to decide on the securities they wish to lend, set the terms of the loan, and recall the security at any time.
While holders of securities can earn additional revenue on their stocks, bonds and exchange-traded funds, it is usually only viable for large financial institutions, such as asset managers, due to economies of scale, high costs and the complexity of implementation.
The solution is designed to integrate with existing IT infrastructure and provides a fully digital user experience, providing the information and controls needed to manage portfolios.
As the result of a partnership between Citi Ventures and Citi鈥檚 Agency 网爆吃瓜 Lending business in Asia Pacific, the solution 鈥� born out of strategic growth programme Citi Ventures D10XSM 鈥� opens up opportunities for smaller players.
The Singapore-headquartered D10x team collaborated closely with Citi鈥檚 ASL business in prototyping, testing and launching the product.
Citi Ventures鈥� head of programs and strategic partnerships Victor Alexiev says: 鈥淭his is a stellar example of business-aligned product innovation and cross-franchise cooperation which brings out the best in the depth and breadth of Citi's products and service offerings.
鈥淲ealth and retail clients in Asia have traditionally been experienced investors and the demand from them for products that are largely only available to the institutional market, such as securities lending, is expected,鈥� Alexiev adds.
Citi鈥檚 Asia Pacific head of agency securities lending Eusebio Sanchez says: 鈥淲e are delighted to have brought this solution to market in collaboration with Sharegain and our wealth management clients, providing private investors access to the securities lending markets and thus, levelling the playing field.鈥�
Sharegain CEO Boaz Yaari says: 鈥淲e are excited to work with Citi to bring this first-of-its-kind solution to their clients and to set a new standard for our industry. This collaboration is a testament to the power of Sharegain鈥檚 solution and its potential to democratise securities lending.鈥�
The automated lending solution comes after Sharegain launched BetterLend earlier this week. The new platform supports social and environmental causes through securities lending activity, allowing clients to assign a percentage of lending revenue to up to four social and environmental initiatives.
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to 网爆吃瓜 Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to 网爆吃瓜 Finance Times
