Welcome to the first instalment of our 3-part series on modernising stock lending technology and processes. In this first post, we’ll explore how market disruption can drive positive change and provide the impetus for financial institutions to embrace digital transformation.

Necessity, they say, is the mother of invention. No financial sector institution chooses to experience disruption, but in many cases, disruption can drive positive change that adds value to the business. 

The Financial Crisis is a case in point. This almost existential challenge for the financial sector ultimately resulted in more stable financial markets as a result of increased regulatory oversight, the implementation of sophisticated technology solutions for compliance and risk management, and the development of stress testing and scenario analysis. 

However, disruption does not need to be on such a monumental scale to have a significant effect on firms. It could simply be the withdrawal of a significant market vendor, a systems collapse, or a security breach that leads organisations to set their businesses on a new and more innovative path.

In markets such as stock lending, disruption can often be what’s needed to drive financial institutions to make long overdue changes. 

Firms operating in the stock lending market still all too often use outdated technologies, workflows, and processes. Disjointed architectures hamper effective communications between banks, clients, and internal teams. Meanwhile, manual processes increase operational risk, with many firms in this space still relying on phones, chat applications, and spreadsheets to match interests, negotiate, and optimise post-trade processes. 

The stock lending market is, in short, an analogue throwback in a digital age. Firms know they need to change to reduce costs, increase productivity, and reduce risk, but have dragged their feet, often put off by the perceived difficulty of digital transformation. 

However, there can only be one direction of travel for firms, and that’s forward. Evolved stock lending platforms, such as Wematch, can help firms modernise their operating models and put in place digital workflows. 

Our suite of tools, including smart matching, negotiation, lifecycle management, and more, drives breakthrough efficiencies and seamlessly integrates with firms’ existing architecture. Far from being a challenge, with Wematch digital transformation is simple. Using an intuitive API connection, Wematch allows firms to shed the complexity of legacy systems and empowers financial institutions to connect effortlessly with their partners. 

In truth, all financial institutions should be looking to digitise their workflows as a priority. Doing so enables firms to benefit from the latest advances in cloud computing, data analytics, and security best practices.

However, it can be hard to make a case for change – any change – especially during challenging economic conditions. That’s why operational and technology teams at financial institutions should turn any unplanned disruption to their advantage and use it as a springboard for renewal. In the case of the stock lending market, that means striking while the iron’s hot and making the shift to evolved lending platforms.

Never waste a good crisis – use it to effect much-needed change. Reach out to learn more.

Photo by: Avelino Calvar Martinez on Burst

The views and opinions expressed are for informational and educational purposes only as of the time of the writing/production and may change at any time. The material may contain “forward-looking” information that is not purely historical in nature. Such information may include, among other things, projections, forecasts, estimates of market returns, and proposed or expected portfolio composition. All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.