Partnerships will democratise capital markets
Newsletter - April, 2021
Spring is here. Change is in the air.
We’re just three months into 2021. But it’s already been a record-breaker.
We knew Q1 would see a boom in private investor participation in capital markets, but we’re only now seeing how big that boom was. Private investor trading jumped 66% Q-on-Q according to a recent DriveWealth report. Account openings doubled. Custodied assets grew 33%. We’re in a new world of empowered private investors.
Securities lending is following suit and setting its own records. On-loan balances crossing $2.7tn. Revenue up 11% Q-on-Q. The industry is starting to realise its true potential.
BUT how do you bring this securities lending opportunity to a new generation of empowered private investors?
The answer isn’t straight-forward, but recently we’ve seen a paradigm shift. The largest financial institutions are now willing to partner with Fintech start-ups to drive greater adoption and offer new services.
At Sharegain, we’re no exception. We’re working with Citi to bring securities lending to wealth managers they custody.
It’s another step towards democratising capital markets.
"If the year 2020 felt like a decade, Q1 2021 was a lifetime." - IHS Markit
Q1 was a rollercoaster for securities lending, riding a shot squeeze in January and high borrowing demand for US Treasury bonds.
The result? 15% year-on-year growth in revenue, global lendable assets at a new all-time high. A bumper quarter.
Democratising capital markets is a huge challenge, one with many fronts
But the industry is rising to the challenge. New partnerships are finally bringing established services to every investor.
These partnerships are making the industry more inclusive, more user-friendly, more accessible. And it’s only just beginning.
At Sharegain, we’ve just announced a new partnership with Citi, bringing securities lending to wealth managers they custody – and every one of their underlying customers.
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