Broadridge Financial Solutions has confirmed plans to acquire a securities-based lending (SBL) and collateral management technology provider Rockall to bolster its front-to-back office capabilities.
The move will see Broadridge expand its collateral management and securities lending technology services to help financial institutions manage risk and their clients’ SBL needs, Broadridge said in a statement on the acquisition.
Terms of the deal were not disclosed.
Rockall’s COLLATE technology platform is currently used by ten of the top 30 banks in the US to streamline collateral management and credit risk processes. Rockall also provides a cloud-based securities lending technology solution known as FASTNET, which automates the management of securities-based lending.
“The acquisition of Rockall is the most recent example of Broadridge growing our wealth franchise by expanding our core wealth offering for clients,” said Michael Alexander, head of North American wealth and capital markets solutions at Broadridge.
“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 mutualising key front-, middle- and back-office functions.”
Broadridge added that wealth management firms are faced with challenges around securities lending due to legacy infrastructure and internal systems that depend on manual processes, which can slow down the lending decision process.
“We are excited to have our innovative SBL and collateral management technology solutions be a part of Broadridge’s wealth management offerings, serving an even greater number of clients. 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,” Richard Bryce, CEO of Rockall, concluded.