Broadridge's Securities-based Lending Capabilities and Wealth Lending Network Now Integrated with Morningstar Advisor Workstation

Rhea-AI Summary

Broadridge Financial Solutions (NYSE:BR) has integrated its securities-based lending (SBL) tools from the Wealth Lending Network (WLN) marketplace into Morningstar Advisor Workstation. This collaboration enables over 150,000 independent advisors to access lending solutions seamlessly, helping them support broader client financial goals. The integration allows advisors to:

1. Determine clients' SBL borrowing potential
2. Connect with WLN partner banks
3. Access advanced predictive prospecting and sales capabilities

This move aligns with the growing demand for flexible, simplified, and integrated financial solutions, allowing advisors to provide more comprehensive services and strengthen client relationships. Clients benefit from an alternative to liquidating investment portfolios, potentially avoiding capital gains taxes and preserving their investment strategy.

Positive

• Integration with Morningstar Advisor Workstation expands Broadridge's reach to over 150,000 advisors
• Enables advisors to offer expanded services, potentially increasing their value proposition
• Provides clients with flexible borrowing options without liquidating investments
• Allows wealth managers of all sizes to offer SBL services using Broadridge's digitized platform

Negative

• None.

Insights

Financial Technology Analyst

This integration marks a significant advancement in wealth management technology. By combining Broadridge's SBL capabilities with Morningstar's Advisor Workstation, it creates a powerful synergy that could reshape how independent advisors operate. The integration addresses a crucial gap in the market, enabling advisors to offer more comprehensive services without switching platforms.

From a business perspective, this move could potentially increase Broadridge's market share in the wealth management technology sector. It also positions Morningstar to better compete with full-service financial institutions. For investors, this could translate to enhanced revenue streams for both companies, as they tap into the growing demand for integrated wealth management solutions.

However, the success of this integration will largely depend on advisor adoption rates and the ease of use of the combined platform. It's also worth noting that while this expansion of services is promising, it comes with increased responsibility for advisors in managing client debt, which could pose both opportunities and risks.

Wealth Management Consultant

This integration is a game-changer for independent advisors. By providing seamless access to SBL tools, it allows them to compete more effectively with larger, full-service firms. The ability to offer lending solutions alongside investment advice enables a more holistic approach to wealth management, which is increasingly demanded by high-net-worth clients.

The potential to retain AUM when clients need liquidity is particularly significant. Traditionally, advisors might lose assets under management when clients liquidate investments for cash needs. Now, they can offer an alternative that keeps the portfolio intact while meeting client liquidity requirements. This could lead to improved client retention and potentially higher revenues for advisory firms.

However, advisors must be cautious. Integrating lending into their services requires additional expertise and careful management of conflicts of interest. There's also a risk of over-leveraging clients if not managed properly. Advisors will need to ensure they have the necessary training and compliance measures in place to navigate these new waters effectively.

The collaboration enables independent advisors to deliver holistic advisory services across the full balance sheet with integrated SBL capabilities to see the borrowing power for portfolios.

NEW YORK, Sept. 15, 2024 /PRNewswire/ -- Global fintech leader Broadridge Financial Solutions, Inc. (NYSE:BR) announces the securities-based lending (SBL) tools in its Wealth Lending Network (WLN) marketplace are now integrated in Morningstar Advisor Workstation. Extending beyond Workstation's core research, investment planning, and portfolio analysis capabilities, independent advisors now have seamless access to lending solutions that help them support broader client financial goals.

The integration offers financial advisors the ability to determine their clients' SBL borrowing potential and connect with WLN partner banks to support their clients' lending needs. Advisor Workstation's U.S. footprint of more than 150,000 advisors will now be offered the opportunity to seamlessly connect to SBL services from Broadridge through their single sign on, as well as to access Broadridge's advanced predictive prospecting, sales and educational capabilities via the Wealth Lending Network platform.

"Today's advisors recognize the importance of offering expanded services to add value for their clients. As highlighted in Morningstar's 2024 Voice of the Advisor Survey, advisors who offered a broader range of services were more confident in their ability to support their client with meaningful financial plans" said Vimal Vel, chief product officer for Enterprise Solutions at Morningstar. "Our collaboration with Broadridge equips advisors with a tool for advanced lending options, enabling them to provide a more comprehensive suite of services and elevate the industry standard for the value advisors offer clients."

"Our mission at Broadridge is to provide trusted expertise and transformative technology to help clients and the financial services industry operate, innovate, and grow," said Mike Alexander, President of Broadridge Wealth Management. "This collaboration helps advisors respond to the growing demand for flexible, simplified, and integrated financial solutions, including borrowing against their securities portfolio, allowing them to better align with their clients' evolving goals, and provide expanded service offerings that strengthen their client relationships."

The WLN enables wealth managers of all sizes to offer SBL services to their clients using Broadridge's end-to-end, fully digitized SBL technology platform. It extends current lending models, enabling financial institutions to offer SBL to clients on a turnkey basis. Serving RIAs, independent broker-dealers, non-bank affiliated broker dealers, and wealth management firms, the WLN will allow advisors using the Morningstar Advisor Workstation to retain AUM when client liquidity needs arise, reduce competitive risk from wire houses and banks, and offer holistic advice to their clients.

Clients of financial advisors using WLN and Morningstar Advisor Workstation are expected to directly benefit from having an alternative to liquidating investment portfolios. This can help them to preserve their investment strategy, avoid triggering potential capital gains taxes associated with selling investments, and enjoy the convenience of a single provider for both assets and liabilities. They also gain the flexibility of an evergreen credit facility for ongoing financial needs.

About Broadridge

Broadridge Financial Solutions (NYSE: BR), is a global technology leader with the trusted expertise and transformative technology to help clients and the financial services industry operate, innovate, and grow. We power investing, governance, and communications for our clients – driving operational resiliency, elevating business performance, and transforming investor experiences.

Our technology and operations platforms underpin the daily trading of more than $10 trillion of equities, fixed income and other securities globally. A certified Great Place to Work®, Broadridge is part of the S&P 500® Index, employing over 14,000 associates in 21 countries. For more information about us, please visit www.broadridge.com.

About Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment insights in North America, Europe, Australia, and Asia. The Company offers an extensive line of products and solutions that serve a wide range of market participants, including individual and institutional investors in public and private capital markets, financial advisors and wealth managers, asset managers, retirement plan providers and sponsors, and issuers of fixed-income securities. Morningstar provides data and research insights on a wide range of investment offerings, including managed investment products, publicly listed companies, private capital markets, debt securities, and real-time global market data. Morningstar also offers investment management services through its investment advisory subsidiaries, with approximately $316 billion in AUMA as of June 30, 2024. The Company operates through wholly-owned subsidiaries in 32 countries. For more information, visit www.morningstar.com/company. Follow Morningstar on X (formerly known as Twitter) @MorningstarInc.

Media Contacts:

Broadridge:
Matthew Luongo
Prosek Partners
+1 646-818-9279
mluongo@prosek.com

Morningstar:
Michael Claussen
+1 312 696-6037
newsroom@morningstar.com

 

View original content:https://www.prnewswire.com/news-releases/broadridges-securities-based-lending-capabilities-and-wealth-lending-network-now-integrated-with-morningstar-advisor-workstation-302248260.html

SOURCE Broadridge Financial Solutions, Inc.

FAQ

What is the new integration between Broadridge and Morningstar Advisor Workstation?

Broadridge has integrated its securities-based lending (SBL) tools from the Wealth Lending Network (WLN) marketplace into Morningstar Advisor Workstation, allowing over 150,000 independent advisors to access lending solutions seamlessly.

How does the Broadridge-Morningstar integration benefit financial advisors?

The integration allows advisors to determine clients' SBL borrowing potential, connect with WLN partner banks, and access advanced predictive prospecting and sales capabilities, enabling them to provide more comprehensive financial services.

What advantages does the Broadridge SBL integration offer to clients?

Clients can borrow against their securities portfolio without liquidating investments, potentially avoiding capital gains taxes, preserving their investment strategy, and gaining flexibility with an evergreen credit facility for ongoing financial needs.

When was the Broadridge-Morningstar integration announced?

The integration was announced on September 15, 2024, as per the press release.