Citi has partnered with the fintech company Sharegain to bring a securities lending solution for custodians to the market.
The fully automated securities lending solution is designed for the global wealth management companies that Citi is responsible for, and means clients do not need to develop an in-house program.
With Sharegain’s technology, clients of asset management companies can decide at any time which securities to lend, set the terms of the loan and recall the security.
While security holders can generate additional income from their stocks, bonds, and exchange-traded funds, this is typically only possible 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 infrastructures and offers a fully digital user experience with the information and controls required to manage portfolios.
The result of a partnership between Citi Ventures and Citi’s agency securities lending business in the Asia-Pacific region, the solution resulting from the Citi Ventures D10XSM strategic growth program opens up opportunities for smaller businesses.
Headquartered in Singapore, the D10x team worked closely with Citi’s ASL business to prototype, test and bring the product to market.
Victor Alexiev, Program Director and Strategic Partnerships for Citi Ventures, said, “This is a prime example of business-driven product innovation and cross-franchise collaboration that brings out the best in the depth and breadth of Citi’s products and services.
“Asset and private customers in Asia are traditionally experienced investors, and their demand for products that are largely only available to the institutional market, such as B. Securities lending is expected, ”added Alexiev.
Eusebio Sanchez, Head of the Asia Pacific Securities Lending Agency at Citi, said: “We are delighted to have brought this solution to market in collaboration with Sharegain and our wealth management clients to give private investors access to the securities lending markets to create a level playing field. ”
Boaz Yaari, CEO of Sharegain, said, “We are excited to work with Citi to bring this unique solution to their customers and set a new standard for our industry. This collaboration is proof of the power of the sharegain solution and its potential to democratize securities lending. “
The automated lending solution comes after Sharegain launched BetterLend earlier this week. The new platform supports social and environmental issues through stock lending and enables customers to allocate a percentage of credit income to up to four social and environmental initiatives.
