Citi launches automated securities lending solution for wealth managers

CITI Singapore, in partnership with fintech Sharegain, has launched a fully automated securities lending solution for the wealth management firms it provides custody services to.

The solution enables global wealth management firms to offer a securities lending programme to their customers without having to develop an internal programme from scratch, said the bank in a statement on Friday.

While securities lending provides holders of securities the opportunity to earn additional revenue on their stocks, bonds and exchange-traded funds, it is traditionally only viable for large financial institutions such as asset managers due to economies of scale, high costs and complexity of implementation, said Citi.

Through Sharegain's technology, customers of wealth management firms will be able to decide on the securities they wish to lend, the terms, keep track of their loans at every stage of their life cycle, and recall the security at any time.

Citi said the new securities lending solution is designed to integrate with the existing IT infrastructure of wealth managers. It provides a fully digital user experience to their customers - from opting-in to the programme through to managing their lending and equipping them with the necessary information and controls needed to manage their portfolio.

This solution is led by a partnership between Citi Ventures and the bank's Agency Securities Lending (ASL) business in the Asia-Pacific.

Eusebio Sanchez, Citi's Asia-Pacific head of ASL, said: "Wealth and retail clients in Asia have traditionally been experienced investors, and the demand from them for products that are largely only available to the institutional market such as securities lending is expected. We are delighted to have brought this solution to market in collaboration with Sharegain and our wealth management clients, providing private investors access to the securities lending markets and thus, levelling the playing field."

Boaz Yaari, chief executive officer and founder of Sharegain, added: "This collaboration is a testament to the power of Sharegain's solution and its potential to democratise securities lending."