Broadridge broadens its offerings via Rockall’s securities-based lending and collateral management solutions.
Broadridge Financial Solutions has taken a major step to expand its front-to-back wealth management capabilities via the acquisition of Rockall Technologies, a provider of securities-based lending (SBL) and collateral management solutions for wealth management firms and commercial banks.
Rockall’s collateral management technology targets financial institutions that need to “improve the performance of wealth, retail, commercial and corporate lending,” officials say. Rockall adds that its technology attempts to “streamline collateral management,” and act as a “safeguard against credit risk and enhance lending.”
The Fastnet offering from Rockall provides liquid lending via cloud computing and automates the evaluation, monitoring, and management of securities-based lending, officials add. The Collate product offers collateral management support for credit risk management, regulatory reporting, process simplification, and capital efficiency.
The acquisition is complete and Rockall’s solutions are being offered to Broadridge’s existing client base, a Broadridge spokesperson confirms.
On Rockall’s website, the vendor reports that it is targeting collateral management for wealth, retail, commercial and corporate lending markets.
“Our aim is to extract the strategic value of collateral and to deliver valuable business insights and data sets for banks. Beyond good data management and operational simplification, we are innovating to deliver substantial improvements in capital utilization efficiency, customer experience, large-scale triage management and stress testing,” according to the website. “With AI and machine learning emerging as new enablers, the journey continues.”
With the acquisition of Rockall, Broadridge is “growing our wealth franchise by expanding our core wealth offering for clients,” says Michael Alexander, head of North American Wealth and Capital Markets Solutions for Broadridge, in a prepared statement. “Securities-based lending and collateral management are key industry areas in need of innovation, and we look forward to leveraging next-generation technology to provide proven solutions to clients while mutualizing key front-, middle- and back-office functions.”
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, according to Broadridge.
Yet, in general, securities-based lending has a “cumbersome infrastructure and internal systems dependent on manual processes that slow down the lending decision process and hinder risk management,” according to Broadridge. “An increasing number of investors are recognizing the value of securities-based lines of credit and the need for financial services firms to automate, scale and optimize their SBL business operations.”
Rockall’s SBL and collateral management technology solutions will become a part of Broadridge’s wealth management offerings, “serving an even greater number of clients,” says Richard Bryce, CEO of Rockall, in a statement. “Broadridge is a leader in the wealth management industry and its size and scale accelerates our ability to meet the increasing demand from advisors and investors,” Bryce adds.
Houlihan Lokey acted as exclusive financial and strategic advisor to Rockall, add officials who decline to disclose the financial terms of the deal.
Broadridge is a financial services and products vendor offering investor communications, securities processing, managed services, and IT solutions to banks, broker-dealers, asset managers and corporate issuers globally. Broadridge reports that it employs more than 10,000 full-time associates in 18 countries.
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