Private Bank Case Study: The Pareto principle amplified

Case study: The Pareto principle amplified

How a private bank rolled out a targeted fully-paid securities lending program

Challenge

A leading global private bank recognized the need to launch a fully-paid securities lending program to meet client demands, generate additional revenue and enhance its value proposition.

However, the bank lacked the securities lending experience to develop a solution in-house while maintaining focus on its core capabilities. They didn’t want to wait years to launch and sought a strategic partnership to quickly and competitively bring a program to market. But first they needed to address three key questions:

What is the value of the opportunity?

What heavy lifting is required?

How do we drive adoption among our advisors and clients?

The opportunity

Value over volume

Utilizing Sharegain’s analyzer tool, we identified that the private bank’s top 5% of clients accounted for around 90% of the potential revenue opportunity.

Their top 20 clients could generate

65%

of the revenue
potential

and the top 100
clients could
generate

84%

No heavy lifting

In collaboration with the private bank, we conducted a workshop involving the relevant departments to map requirements and leverage existing capabilities.

By prioritizing speed to market and minimizing development efforts, we identified that the bank could utilize its existing infrastructure and processes, without requiring in-house IT development.

Our Securities Lending as a Service (SLaaS) technology also bridged its operational and reporting gaps. The data points aggregated daily enabled the bank to report down to each underlying account, providing full flexibility and control – and empowering the bank to set their own preferences, from approving borrowers to selecting acceptable collateral.

Driving wide adoption

With many years’ industry experience, we supported the bank and their advisors – providing guidance on how to successfully present and market securities lending to drive wider adoption among clients.

We also acted as a thought partner, actively supporting them in overcoming challenges, keeping them updated on regulatory requirements, and providing ongoing training.

Results and Benefits:

ROI in months, not years

Established an SL program in months, with no CapEx and minimal OpEx.

A true business and thought partner

Provided comprehensive support throughout the bank’s journey, from program inception and launch to daily operations and ongoing management.

Pareto amplified – 90% of revenue generated for top 5% of clients

Within six months, a single stock loan generated over half a million dollars.

Exceptional client experience

Interactive dashboards put the bank in control and provided their clients a high-tech, customizable SL offering.

Disclaimer: Please note, all case studies have been carefully anonymized. Although scenarios are based on real life events and Sharegain research they
have been fictionalized.
Past performance is not indicative of future performance.

By partnering with Sharegain, the global private bank successfully launched a market competitive fully-paid securities lending program, generating revenue, empowering their advisors, and delivering exceptional client experience.

Realize the true potential of securities lending.

The Sharegain approach:

Smart. Automated. Simple.

How it works

Securities Lending as a Service (SLaaS)

Unlock all lendable funds and client accounts, regardless of custodian or jurisdiction, via a centralized and fully automated securities lending solution

Custodian bank

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