In the final post of our 3-part stock lending series, we’ll focus on how new market conditions require real-time processes and discuss key capabilities like automation that evolved platforms provide to optimise workflows.

The stock lending market is in the midst of significant change. Economic headwinds and unpredictable market conditions mean that dramatic price fluctuations are happening more frequently. This translates into an increased operational risk as financial institutions need to move faster to understand counterparty risk, collateral requirements, and their market exposure.

Meanwhile, the regulatory burden continues to ratchet up, and financial institutions must be always ready to provide accurate, up-to-date records of transactions. Increasingly, they must also modernise their systems to meet regulatory requirements. Emerging T+1 mandates for next-day settlement, for example, will have a knock-on effect on stock lending and borrowing, as there will be less time to identify and recall loans, meaning that settlement fails and associated penalties may rise. 

With stock lending markets increasingly needing to operate in near real-time, financial institutions need to modernise their workflows to accelerate their business processes and de-risk their operations. To that end, leading firms are increasingly investing in evolved stock lending platforms that are capable of keeping pace with the modern market.

Here are just three ways in which these platforms are driving breakthrough value for financial institutions:

1. Automate manual tasks and enhance communication. By automating manual tasks, optimising post-trade processes and enhancing internal and external communications, these stock lending platforms streamline banks’ operations and enable seamless collaboration.
2. Simplify connectivity. These platforms leverage intuitive API connectivity for flexible integration. Unlike complex legacy platforms, they empower firms to connect with ease to all partners. The best come with self-service tools and dedicated support to ensure a smooth and hassle-free onboarding process.
3. Continual evolution. Evolved stock lending platforms bring to bear new advances in cloud computing, data analytics, API integration, and security best practices on an ongoing basis.

The days of unwieldy legacy technology, slow development roadmaps, and rigid architectures are over. The accelerating pace of the stock lending markets means that banks need to move faster and with greater confidence. 

At Wematch we deliver an industry-leading stock lending platform that digitises workflows and streamlines communication. With a simple integration process, firms can get up and running on Wematch rapidly to increase productivity, reduce risk, and drive operational agility. As well as leveraging all external innovation, we put client feedback at the centre of the development process, collaborating to ensure that the platform meets clients’ most pressing needs. Reach out to learn more.

Photo by: Avelino Calvar Martinez on Burst

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