Broadridge acquires Rockall for securities lending

Broadridge Financial Solutions has acquired Rockall, a provider of securities-based lending (SBL) and collateral management solutions for wealth management firms and commercial banks.

The acquisition expands Broadridge’s core front-to-back office wealth capabilities, providing SBL and collateral management technology solutions to help firms manage risk and optimise clients’ securities lending and financing needs.

Terms of the deal were not disclosed.

Two key offerings Rockall provides include: a cloud-based wealth lending solution, “Fastnet”, which automates the evaluation, monitoring and management of SBL, and an enterprise banking collateral management solution, “Collate”, which supports strategies and change levers that drive enhanced credit risk management, regulatory reporting, process simplification and capital efficiency.

“Securities-based lending and collateral management are key industry areas in need of innovation, and we look forward to leveraging technology to provide proven solutions to clients while mutualizing key front-, middle- and back-office functions,” says Michael Alexander, head of North American wealth and capital markets solutions for Broadridge.

Securities-based lending has grown in the past several years to become viewed as an essential offering for wealth management firms to improve revenues and enhance retention of both advisors and investors, says Broadridge.

According to the firm, an issue facing many wealth management firms around SBL is cumbersome infrastructure and internal systems dependent on manual processes that slow down the lending decision process and hinder risk management.

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