Broadridge Financial Solutions, Inc. confirmed today that it has acquired Rockall, a provider of securities-based lending (SBL) and collateral management solutions for wealth management firms and commercial banks. Broadridge said the acquisition expands its core front-to-back office wealth capabilities, providing innovative SBL and collateral management technology solutions to help firms manage risk and optimize clients’ securities lending and financing needs.
Rockall currently enables the management of more than $3 trillion worth of collateral daily for some of the world’s top banks, and 10 of the top 30 U.S. banks use Rockall’s technology to streamline collateral management, safeguard against credit risk and enhance lending. Two key offerings Rockall provides include: a cloud-based wealth lending solution, FASTNET, which automates the evaluation, monitoring and management of SBL, and an enterprise banking collateral management solution, COLLATE, which supports strategies and change levers that drive enhanced credit risk management, regulatory reporting, process simplification, and capital efficiency.
“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 for 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 mutualizing key front-, middle- and back-office functions.”
Analysts say 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. An issue facing many wealth management firms around SBL is cumbersome infrastructure and internal systems dependent on manual processes that slow down the lending decision process and hinder risk management. 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.
“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,” said Richard Bryce, CEO of Rockall. “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.”
Houlihan Lokey acted as exclusive financial and strategic advisor to Rockall. Terms of the deal were not disclosed.