Securities Financing Technology News | Citi launches automated securities lending solution for private investors

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Citi has partnered with financial technology firm Sharegain to launch a securities lending solution for custodial services.

Designed for the global wealth management firms Citi serves, the fully automated securities lending solution means clients won’t have to develop an internal program on their own.

Sharegain’s technology allows clients of wealth management companies to decide which securities they wish to lend, set loan terms and recall the security at any time.

While security holders can earn additional income on their stocks, bonds and exchange traded funds, this is generally only viable for large financial institutions, such as asset managers, due to economies of scale. , high costs and complexity of implementation.

The solution is designed to integrate with existing IT infrastructure and deliver a fully digital user experience, providing the information and controls needed to manage portfolios.

The result of a partnership between Citi Ventures and Citi’s Agency Securities Lending activity in Asia-Pacific, the solution, born of the Citi Ventures D10XSM strategic growth program, opens up opportunities for smaller players.

The Singapore-based D10x team worked closely with Citi’s ASL business for prototyping, testing and product launch.

Victor Alexiev, Head of Programs and Strategic Partnerships at Citi Ventures, said: “This is a great example of business-aligned product innovation and franchise cooperation that brings out the best in depth and breadth of Citi’s product and service offerings.

“High net worth and retail clients in Asia are traditionally experienced investors and demand from them for products that are largely only available for the institutional market, such as securities lending, is expected,” adds Alexiev.

Eusebio Sanchez, Head of Securities Lending Agencies for Citi Asia-Pacific, said: “We are delighted to have brought this solution to market in collaboration with Sharegain and our wealth management clients, offering private investors access to securities lending markets and thus leveling the playing field. ”

Sharegain CEO Boaz Yaari said, “We are delighted to be working with Citi to bring this one-of-a-kind solution to their customers and set a new standard for our industry. This collaboration is a testament to the power of Sharegain’s solution and its potential to democratize securities lending.

The automated loan solution comes next Sharegain launched BetterLend earlier this week. The new platform supports social and environmental causes through securities lending activities, allowing clients to allocate a percentage of loan income to up to four social and environmental initiatives.

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