Custodian Bank Use Case: Drumbeat

Summary

A custodian bank needs to offer clients a new source of revenue.

Budgets are tight. They aren’t interested in up-front costs or expanding headcount.

With Sharegain, they achieve an exponential increase in lending activity, with no new overheads.

Every two years, the number of transistors in an integrated circuit doubles: its size doesn’t change but it’s processing power grows exponentially. The phenomenon is known as Moore’s Law, but it isn’t a law at all. It’s a pattern. A drumbeat. It’s the pulse of the hardware industry.
Every sector has a pulse. Some are quick, some are slow. Every one of them is getting faster. For custodian banks that tempo is reflected in five short words:

Do more with the same.

A client of ours was in this position. They’re a custodian bank with over $50bn in AUC and they know they need to create new sources of competitive advantage with the resources they have. Ideally, they’re looking to do twice as much with the same budget. That brought them to securities lending. 

When we first met, the client was on the horns of a dilemma. They have to choose whether to outsource to a global custodian programme, or build a securities lending offering themselves

The global custodian option is too rigid,
it doesn’t offer tailored terms for underlying clients, or the transparency they expect.

On the other hand, their ops team don’t have the bandwidth to build and scale a securities lending offering. 

Both options will require investment and ongoing support, which they couldn’t fund from their current budget.

The client’s ask was simple: can Sharegain deliver a fully automated, scalable securities lending offering, with no back-office, no overheads and full flexibility to offer different terms to our various client types? The answer was unequivocally YES.

Time waits for no man, so we got to work.
Within 14 weeks we had established a scalable securities lending programme with no expenses on their side.

Once up and running, the client had a fully automated securities lending solution, with complete transparency over their lending activity.

For the next 12 months the client doesn’t drop their focus: they see an exponential increase in lending activity. They’re just getting started. 

In 1970 the world’s leading processor had 6,300 transistors. In 2019, it reached 30 billion. They say that, by 2025, computer processing power will overtake the human brain. Never underestimate the power of relentless, compounding success.

Realise the true potential of your securities lending

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

Custodian bank

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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