In partnership with Fintech firm Sharegain, Citi has launched a fully automated securities lending solution for the wealth management firms that it provides custody services to.
Led by close partnership between Citi Ventures and Citi’s Agency Securities Lending (ASL) business in Asia Pacific, the solution enables global wealth management firms to deliver a securities lending programme to their customers without having to develop an internal programme from scratch. While securities lending provides holders of securities the opportunity to earn additional revenue on their stocks, bonds and ETFs, it is traditionally only viable for large financial institutions such as asset managers due to economies of scale, high costs and complexity of implementation.
Through Sharegain’s technology, customers of wealth management firms are able to seamlessly decide on the securities they wish to lend, the terms, keep track of their loans at every stage of their lifecycle and recall the security at any time.
The idea of an automated securities lending solution was born from Citi Ventures D10XSM program, a strategic growth initiative that nurtures the development of business solutions. In implementing this solution, the Singapore-headquartered D10x team collaborated closely with Citi’s ASL business in validating, scoping, prototyping, testing and supporting the launch of the product.
“This 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,” said Victor Alexiev, Head of Programs and Strategic Partnerships for Citi Ventures.
“Wealth 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. We 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, leveling the playing field,” said Eusebio Sanchez, Citi’s Asia Pacific Head of Agency Securities Lending.
The new securities lending solution is designed to integrate with the existing IT infrastructure of wealth managers. It provides a fully digital user experience to their customers, from opting-in to the programme through to managing their lending and equips them with the necessary information and controls needed to manage their portfolio.
“We 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,” said Boaz Yaari, CEO and founder of Sharegain. “This collaboration is a testament to the power of Sharegain’s solution and its potential to democratise securities lending.”
With trading desks in five countries covering 75 lending markets, Citi Agency Securities Lending has an extensive global presence that leverages its local expertise from over 60 proprietary custody branches.