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Liquid lending – The new WM profit centre

21 May 2018

Liquid lending (or Lombard, Securities-based, Non-Purpose) is growing apace. Wealth managers are experiencing rapid growth – many at rates exceeding 25% p.a.


As Wealth Managers (WMs) look for high-margin revenue sources, liquid lending has become table stakes and has emerged as the new profit centre – not just for the wealth business but for the bank as a whole.  At Morgan Stanley, wealth management profits are increasing 3x faster than revenues (Forbes).

With this strengthening opportunity for liquid lending, what is your growth strategy?

In a recent Rockall survey, 100% of participants stated that liquid lending is a real opportunity for profitable, risk-managed growth.  The majority stated that their ability to scale liquid lending – and to manage the associated risk – is limited by a lack of automation.

The WMs that most successfully deliver scale in wealth lending use automation to deliver fully risk-managed processes with the ability to respond quickly to market volatility.  In fact, over 65% of banks surveyed by us said that, even with balances as low as $100M, liquid lending automation makes sense.  These banks told us that the biggest obstacle to growing liquid lending without an automated system is the inability to manage risk.  Handling and managing growing numbers of loans on manual or fragmented processes that simply cannot scale presents stumbling blocks.

FASTNET is Rockall’s SBL-in-the-Cloud solution, delivering liquid lending automation that is enabling large and smaller banks alike to build and expand their liquid lending business.

FASTNET enables rapid loan evaluation, processing and monitoring against market pricing and ratings data, FASTNET can monitor assets held away.  If you want to scale your liquid lending business seamlessly, or have concerns about managing credit risk at times of market volatility, you might like to click here to learn how automation can accelerate your business growth with full credit risk control.

"Approximately one third of the $29.8 billion of net new assets in 2016 at Credit Suisse's International Wealth Management and Asia Pacific divisions came via lending... and this could go even higher"

-David Mathers, Chief Financial Officer

Rockall's Clients and Partners

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