NEW YORK, Nov. 4, 2021
/PRNewswire/ -- Broadridge Financial Solutions,
Inc. (NYSE:BR), a global Fintech leader, has published the
2021 Securities-Based Lending Survey Report, reflecting the views
of the company's securities-based lending (SBL) customer base. The
customers, representing over $100B in
securities-backed lines of credit, project significant growth in
the year ahead as well as expansion of SBL into retail wealth.
"We have seen dramatic digitization of the SBL business,
particularly in the last 24 months," said Luke Nestor, Founder of Rockall – a Broadridge
business. "Loan origination on the workstation has made SBL
accessible to the advisor who can now quickly initiate loans in the
client meeting. Sales enablement and further process
streamlining are driving the scalability that can answer demand
from the mass affluent segment while machine learning can
automatically generate pipeline, making the advisor more effective
in getting their clients the liquidity they need. This
technological evolution is supporting significant growth from a
stronger product portfolio."
The wealth management industry has had to rapidly evolve in the
wake of the Covid-19 pandemic. Systems that long-needed
modernization are now being digitized and streamlined – making SBL
even more scalable and accessible to the advisor than
before. Across the business – from Ultra HNW through to the
Mass Affluent and retail segments – successful advisors and
investors are tapping into the low-cost lending efficiency offered
by SBL.
The report reaches five conclusions that, in turn, lead to
specific takeaways for institutions and advisors looking for SBL
growth and yield:
- SBL growth is multi-dimensional as successful lenders are able
to drive growth through the number of loans, the size of those loan
facilities, and the level of loan utilization, driving growth
expectations of 20% plus in the next 12 months.
- The emergence of the "Lending Advisor" signals that sales teams
are being motivated to consider the total balance sheet, going
beyond asset management to meet their clients' full needs and
desires, fuelled by the prospect of an AI-generated pre-qualified
SBL sales pipeline directly on the advisor workstation.
- SBL process streamlining is helping firms respond to market
demand with automated loan origination on the advisor dashboard,
enabling scalability and supporting extension into the new
segments.
- SBL's digital delivery makes it ripe for
personalization and differentiation across an increasingly
competitive landscape, enabling increased productivity in advisor
marketing.
- Scalability driven by digitization is enabling the emerging
retail wealth cohort to play an expanding role in the SBL market,
enabling access to an asset class historically reserved for
institutions and high net worth investors.
As technology-enabled scalability spurs growth and market
expansion, the report shows that advisors need better training,
marketing, and prospecting support to tap into the SBL
opportunity. They must be able to quickly assess the
suitability of SBL for their clients, and ultimately, to evaluate
and originate loans directly.
Methodology:
The Broadridge survey was conducted by Rockall – a Broadridge
Busines and includes the views of decision makers responsible for
directing and executing the wealth lending strategies for a select
number of leading U.S. banks and wealth managers currently
underwriting more the $100 billion in
SBL business.
For further details on survey methodology, please contact a
Broadridge media representative.
About Broadridge
Broadridge Financial Solutions, Inc. (NYSE: BR), a $5
billion global Fintech leader, is a leading provider of
investor communications and technology-driven solutions to banks,
broker-dealers, asset and wealth managers and corporate issuers.
Broadridge's infrastructure underpins proxy voting services for
over 50 percent of public companies and mutual funds globally, and
processes on average more than U.S. $9 trillion in fixed income and equity
securities trades per day. Broadridge is part of the S&P 500®
Index and employs over 13,000 associates in 21 countries.
For more information about Broadridge, please
visit www.broadridge.com.
Investors:
W. Edings Thibault
Head of Investor Relations, Broadridge
+1 516-472-5129
Edings.Thibault@Broadridge.com
Andres Viroslav
Director of Investor Relations
+1 215-861-7990
aviroslav@thebancorp.com
Media:
Tina Wadhwa
Corporate Communications, Broadridge
+1 212-973-6164
Tina.wadhwa@broadridge.com
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SOURCE Broadridge Financial Solutions, Inc.