Online bank Swissquote announced it’s introducing securities lending for all its private clients, initially with shares and certain ETFs being eligible. Swissquote intends to expand this option to more asset categories in the future. Depending on demand, the net client return rate for loaned securities can be up to 1% yearly with monthly pay-outs. For some securities the return can even exceed 5%, according to a company statement.
Swissquote clients can activate the “Securities Lending” option for their entire portfolio online or exclude specific securities via customer service and the bank remains the customer’s interaction counterpart throughout the process. For this new offering, Swissquote partners with the securities lending specialist Sharegain, which provides direct access to interested borrowing institutions.
Jan De Schepper, chief sales and marketing officer of Swissquote, said in a statement: “Securities lending has long been an attractive option only for investors with large investments. Following a successful launch in Luxembourg, Swissquote is now opening this opportunity for all its clients (except US clients) regardless of portfolio size. They profit from convenient extra passive income from the securities they already own.”
Boaz Yaari, founder and CEO of Sharegain, said in a statement: “For too long, securities lending has benefited only the largest financial institutions.”