Securities Lending Expected To Increase More Than 20% By Year End, New Broadridge Report Says
NEW YORK, Nov. 4, 2021 / PRNewswire / – Broadridge Financial Solutions, Inc. (NYSE: BR), a global fintech leader, released the 2021 Securities Lending Survey Report, reflecting the views of the company’s customers on Securities Lending (SBL). Customers, representing more than $ 100 billion credit lines backed by securities, project significant growth in the coming year as well as an expansion of SBL in retail wealth management.
“We have witnessed a dramatic digitization of SBL business, especially over the past 24 months,” said Luc Nestor, founder of Rockall – a Broadridge company. “The issuance of loans at the workstation has made SBL accessible to the advisor who can now quickly initiate loans during the meeting with the client. Enabling sales and further streamlining of processes drives scalability that can meet demand from the mass segment, while machine learning can automatically generate a pipeline, making the advisor more efficient in delivering to their clients. the cash they need. This technological development supports significant growth from a stronger product portfolio.
The wealth management sector must have evolved rapidly in the wake of the Covid-19 pandemic. Systems that have long needed to be modernized are now digitized and streamlined, making SBL even more scalable and accessible to the advisor than ever before. Across the business, from Ultra HNW to the Mass Affluent and Retail segments, successful advisors and investors are leveraging the effectiveness of low-cost loans offered by SBL.
The report arrives at five conclusions which, in turn, lead to specific lessons for institutions and advisors seeking SBL growth and performance:
- SBL’s growth is multidimensional, as successful lenders are able to drive growth through the number of loans, the size of these loan facilities, and the level of loan utilization, resulting in growth expectations of over 20%. % over the next 12 months.
- The emergence of Lending Advisor signals that sales teams are motivated to look at the total balance sheet, going beyond asset management to meet all of their clients’ needs and wants, fueled by the perspective a pre-qualified SBL sale generated by the AI pipeline directly to the advisor’s workstation.
- Streamlining SBL processes helps businesses meet market demand through automated loan issuance on the advisor’s dashboard, enabling scalability and supporting expansion into new segments.
- SBL’s digital delivery makes it ripe for personalization and differentiation in an increasingly competitive landscape, enabling increased productivity in advisor marketing.
- Scalability driven by digitization allows the emerging cohort of retail wealth to play a growing role in the SBL market, enabling access to an asset class historically reserved for institutions and high net worth investors.
As technological scalability drives market growth and expansion, the report shows that advisors need better training, marketing, and prospecting support to take advantage of the SBL opportunity. They need to be able to quickly assess the suitability of SBL for their clients and ultimately assess and grant loans directly.
The Broadridge Survey was conducted by Rockall – a Broadridge company and includes the views of decision makers responsible for directing and executing wealth lending strategies for a number of major US banks and wealth managers currently subscribing more than $ 100 billion in the business of SBL.
For more details on the survey methodology, please contact a Broadridge media representative.
Broadridge Financial Solutions, Inc. (NYSE: BR), a global leader in $ 5 billion fintech, is a leading provider of investor communications and technology solutions for banks, brokers, asset managers. assets and wealth and private issuers. Broadridge’s infrastructure underpins proxy voting services for more than 50% of public companies and mutual funds globally, and processes on average more than in the United States $ 9 billion fixed income and equity transactions per day. Broadridge is included in the S&P 500® Index and employs more than 13,000 associates in 21 countries.
For more information on Broadridge, please visit www.broadridge.com.
W. Edings Thibault
Head of Investor Relations, Broadridge
Director of Investor Relations
Corporate Communications, Broadridge
SOURCE Broadridge Financial Solutions, Inc.