Asset manager use case: Impulse

Summary

European asset manager sought to transform their securities lending.

Looking to migrate to a custody-agnostic solution that puts them in control.

They chose Sharegain’s fully automated solution, which stood up to the test of COVID-19.

In The Matrix, Morpheus famously offers Neo a choice: take the red pill or the blue. Neo makes his decision in less than 20 seconds. But in those 20 seconds he opens a completely new world.

It’s rare that we face decisions as monumental as Neo’s. Butthat choice between quiet complacency and profound change is one we all have to make.

In capital markets, the status quo still rules. It’s opaque. There’s no sense of control. For now.

A client of ours, a European asset manager, has been lending securities for some time through one of their custodian banks. However, the programme is a black box.

They receive monthly fees and reports but they can’t proactively capture opportunities to enhance their returns.

Our client knows what they’d rather have.

They want one consolidated securities lending
solution that is custody-agnostic, rather than
a different programme with every custodian.

They also don’t want to be in the passenger seat. They want to be making the call about how and when their securities are lent.

They’re also very clear: they can’t dedicate any more budget or staff to their securities lending, which has ruled out building a securities lending desk themselves. With a choice between control and convenience, they’ve (grudgingly) had to choose the latter.

We came to them with an alternative: Why not have both?

They opted in to our fully automated solution over their existing custodian programme. It’s practically turn-key, so it’s implemented with minimal involvement from their IT team.

With that level of automation, they don’t need to be involved every day. The solution runs in the background, providing additional revenue with no new overheads and full control. Within a few months they’re seeing the benefits.

Then, COVID-19 struck.

The unprecedented volatility, capital flows and working from home made it tough just to maintain business as usual. But their securities lending activity, powered by Sharegain, was the one thing they didn’t need to take care of. It proves their hypothesis that a fintech can provide a service that’s just as resilient as their global custodian bank.

Neo’s choice is a stark one, either accept the limitations of the world he’s always known, or challenge them. To not just see and comprehend the Matrix but ultimately to control it.

Asset managers now face a similar decision. Do they take the red pill and accept without question the limitations they’ve always faced, or challenge what they think is possible – and win.

Will you choose a
better way?

The Sharegain approach:

Smart. Automated. Simple.

Seize every opportunity

To earn more from assets you already own

Fully automate your lending

And remove the need for manual workarounds

No budget? No problem!

If you don’t lend you don’t pay

No dependencies on legacy systems

And geography/custody-agnostic

How it works

Securities Lending as a Service (SLaaS)

Unlock all your funds and client accounts, regardless of custodian or jurisdiction, via a centralised and fully-automated securities lending solution

Asset Manager

Would you like to
find out more?

With securities lending, as with other investment activities, your capital may be at risk.

Sharegain Ltd. is registered in England and Wales (no. 09600298) and is authorised and regulated by the Financial Conduct Authority (no. 730395).
*This website is directed exclusively at and intended to be used only by professional investors and retail investors with direct holdings in stocks, bonds and ETFs in excess of £500,000. Our website is not directed at any person or institution where (by reason of nationality, residence or otherwise) the availability of our website or securities lending in general is prohibited. The material on this website is for general information and should not be considered as investment advice or solicitation to be involved in securities lending or to use one of Sharegain’s services. Securities lending involves risks and we have not and will not assess whether our service is appropriate for you. If you decide to lend your securities, your capital may be at risk. Please consult professional advisors if you are in any doubt as to whether the service would be beneficial for you or whether you require any consent or need to observe any formalities, before deciding to engage in securities lending.
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