Service Providers in Collateral Management 2015

December 2015

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Finadium has conducted an industry-wide survey of firms offering services in collateral management for securities and investments. This survey provides readers with a service summary, target clients and level of client interaction, product coverage, market differentiators, new functionalities added in the last year and additional service considerations. On an industry-wide basis, we analyze the important new features that firms are adding, their build vs. buy strategies in technology, product differentiation and what problems their clients are trying to solve.

The reason for this survey was the diversification and expansion of not just the number of service providers but also what service providers mean when they say collateral management. While a core set of functionalities lie at the heart of every offering, providers have evolved to provide a range of value-added services. Service providers also need to differentiate themselves from collateral management technology providers. This survey, along with the Finadium report “Technology Vendors in Collateral Management 2015: A Finadium Survey,” (October 2015) demonstrates how each group is progressing.

The 11 firms in our survey are all well known names in custody, Central Securities Depositories and consultancies. A consistent theme across all firms is the long industry experience of their institutions, even if collateral services are a newer focus area.

The results of this survey are applicable to financial market professionals in the front office, operations and technology working to evaluate the service provider marketplace. It may also be useful to the firms themselves in assessing the competitive landscape.

This report is 55 pages with 6 exhibits.

TABLE OF CONTENTS

■ Executive Summary

■ Changes to the Collateral Service Provider Landscape
– Methodology

■ Industry Analysis
– Build vs. Buy Technology Strategies
– New Features
– Product Differentiation
– What Problems Are Clients Trying to Solve?

■ Vendor Submissions
– The Service Providers
– Other Notable Firms

■ About the Authors

■ About Finadium