Leveling the playing field
How an online broker took their business to the next level with fully paid lending
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Client profile
A prominent international online broker faces intense competition.
Market volatility had led to
reduced activity on the platform
and they were seeking new
opportunities to uphold their
commitment to low fees, while
offering a competitive service.
Inspired by the successes of
their peers, the online broker
wanted to unlock securities
lending as a lucrative
revenue opportunity for
them and their customers.
Securities lending brings results
Online brokers could be leaving around
55
bps
on the table by not lending securities*
High client adoption
In 5 weeks, 72%
of targeted clients opted into the program
Substantial revenue boost
Securities lending quickly became a significant revenue contributor, accounting for
20%
of their total revenue
*Source: Sharegain research
The challenge
The online broker wanted to roll out a securities lending solution but as they scoped the project they were confronted with a number of challenges:
1. Limited time and resources for developing and building an in-house securities lending solution.
2. Lack of in-house expertise in how to manage the contractual agreements, loan lifecycles, corporate events and recalls.
3. Concerns about collateral and borrower counterparty risk, exacerbated by a lack of established networks and relationships.
4. Extensive effort required to offer a best-in-class user experience and full visibility for their customers.
5. Adhering to regulatory and reporting requirements would involve significant development and resource deployment.
The solution
Introducing SLaaS:
Securities Lending as a Service
Barriers to entry significantly reduced
SLaaS connects to the market without requiring
significant capital investment or operational expenses.
Fully compatible
Management of complex operations across the complete SL lifecycle
including corporate actions, comprehensive reporting and billing.
Move from fixed costs to variable costs
No set-up fees, no licensing fees, or upgrade fees.
They only pay when they lend.
Our expertise, your advantage
Sharegain supports the broker with every aspect of SL,
and acts as their single point of contact.
Plug-and-play integration
An end-to-end business solution that integrates
effortlessly with existing platforms.
SLaaS brings results
Accelerated launch:
The broker was able to
launch their program
in months.
Ongoing support:
Sharegain provides market-leading
expertise, ensuring a seamless
experience beyond implementation.
Regulatory compliance:
SLaaS enabled them to meet stringent reporting
requirements and stay on top of changing regulations.
Following the successful launch of the program in one region, the
broker is poised to expand across other jurisdictions where they
operate, rolling it out to their clients globally.
Realize the true potential of securities lending.
The Sharegain approach: Smart. Automated. Simple.
Seize every
opportunity to earn
more from assets
you already own.
Fully automate your
lending. Remove
the need for manual
workarounds.
No dependencies
on legacy systems.
Geography /
custody-agnostic.
No budget? No
problem! You only
pay when you lend
(and earn).
The Sharegain approach: Smart. Automated. Simple.
Seize every opportunity to earn more from assets you already own.
Fully automate your lending. Remove the need for manual workarounds.
No dependencies on legacy systems. Geography / custody-agnostic.
No budget? No problem! You only pay when you lend (and earn).
How it works
Securities Lending as a Service (SLaaS)
Unlock all your funds and client accounts, regardless of custodian or
jurisdiction, via a centralized and fully automated securities lending solution.
