Summary
A custodian 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 its 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 custodians that tempo is reflected in five short words:
Do more with the same.
A client of ours was in this position. They are a custodian with over $50bn in AUC and they knew they needed to create new sources of competitive advantage with the resources they had available. Ideally, they were looking to do twice as much with the same budget. That brought them to securities lending and ultimately, to Sharegain.
When we first met, the client had a dilemma. They had to choose whether to outsource to a global custodian program, or build a securities lending offering themselves.
The global custodian option was too rigid, as it did not offer tailored terms for underlying clients, or the transparency they expect.
On the other hand, their ops team didn’t have the bandwidth to build and scale a securities lending facility.
Both options would have required 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, minimal overhead and full flexibility to offer different terms to its 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 program with minimal expense to the client.
Once up and running, the client had a fully automated securities lending solution, with complete transparency and control over their lending activity.
For the next 12 months, the client didn’t drop their focus: they saw a significant increase in lending activity. And they were just getting started.
In 1970 the world’s leading processor had 6,300 transistors. In 2019, it reached 30 billion. Never underestimate the power of relentless, compounding success.
Realize the true potential of your portfolio
To earn more from assets you already own
And remove the need for manual workarounds
And geography/custody-agnostic
Unlock all lendable funds and client accounts, regardless of custodian or jurisdiction, via a centralized and fully automated securities lending solution
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