The product may level the playing field for advisors who compete with the largest brokerages, which are owned by banks and have made lending to wealthy clients a priority. In some cases, advisors can lose customers or assets if they aren’t able to offer loans, Kaiser said.
Securities-based loans, which are among the more lucrative products available through brokerage channels, are likely to be followed by other offerings to independent advisors and small broker dealers, Kaiser said. Future products would need to be easily distributed through similar technology, he said.
“We’re building a marketplace for RIAs and other financial advisors to help manage liquidity and liabilities for their clients,” Kaiser said. “To the extent, down the road, that we will add more products, they will be scalable.”
This article was provided by Bloomberg News.