Citi has launched the first fully automated securities lending solution for the wealth management companies they own, in partnership with fintech firm Sharegain.
With Citi’s solution, wealth managers can offer a securities lending program to their clients, giving them the opportunity to earn additional income on their stocks, bonds and ETFs, without developing an internal program from scratch.
“Our ambition is to provide Citi’s custodial clients with the world’s premier agency securities lending service,” said Stuart Jarvis, EMEA manager of agency securities lending at Citi. “Securities lending is a well-established practice among institutional investors, but which most private investors have not been able to benefit from. That’s why our clients demand an automated and tailored securities lending service that they can provide to their end clients.
The new securities lending solution is designed to integrate with the existing IT infrastructure of asset managers. It offers a fully digital user experience to underlying clients, from enrolling in the program to managing their loans.
“In a world where new technologies are transforming the way we do business, Citi is embracing innovative ideas to deliver new services to our customers,” said Chris Cox, Global Head of Data & Digitization and Head of EMEA Securities Services at Citi. “Partnering with Sharegain allows us to provide a digital securities lending solution that is flexible, scalable and easily integrates with our clients’ existing systems. “
“We’re excited to be working with Citi to bring this one-of-a-kind solution to their customers and set a new standard for our industry,” said Boaz Yaari, CEO and Founder of Sharegain. “This collaboration is a testament to the power of Sharegain’s solution and its potential to democratize securities lending.
The idea for an automated securities lending solution arose out of Citi’s D10XSM program, a strategic growth initiative that nurtures the development of business solutions. A team of Citi entrepreneurs in residence tested, validated and prototyped the product before validating and selecting Sharegain for the partnership.
With trading offices in five countries covering 75 lending markets, Citi Agency Securities Lending has a broad global presence that leverages the local expertise of more than 60 exclusive custodial branches.