Five reasons to migrate your collateral management to the cloud

We are on the cusp of a new era in the financial services industry. Prompted by new regulation, collateral management now plays a key role within financial institutions. Variations in collateral supply and demand dynamics over the next few years will challenge even the most sophisticated and experienced organisations, as they are forced to fundamentally alter the way they manage their collateral.


In the above video our CEO, Steve Husk, discusses the advantages of cloud solutions in the financial services industry. Below, he gives an in-depth look into how the industry needs to adapt in a time where operational teams are being asked to do more with less. 

The technology deployed to address these regulatory challenges should continue to get cheaper and more efficient. But that’s not what’s happening in the collateral management space. Instead of deploying better, quicker and cheaper systems, the existing legacy solution providers have clawed their way into firms’ infrastructure and have made financial institutions dependent on antiquated software that is delivered through a model that only adds cost and does not prepare firms for the future.

In order to address challenges that have come about in this new era, firms need to think differently.

This is not as easy as it sounds. It requires executives, buyers, and users to shift focus from only managing collateral from their side of the coin. Instead, firms should understand that collateral is inherently ‘networked’ and therefore can only be truly efficient when they become part of a collateral community consisting of counterparties, clearing firms and other participants.

It is becoming increasingly clear to industry participants that cloud-based technology is the way of the future, and being the first to market in this space has given CloudMargin an advantage in truly delivering the benefits that cloud-based solutions offer.

So, why CloudMargin?

There are several options to choose from when it comes to managing the ever-changing demands of your collateral operations. Here are five reasons why CloudMargin comes out on top in the cloud-based category.

1. Lower cost than market alternatives. Our business model is deliberately lower cost than others in our space (we aim to be 25-30% of the total annual cost of our closest competitors across outsourcing or enterprise software) and while we continue to offer a functionally rich platform, controlling or indeed reducing costs is still at the forefront of business priorities as the industry continues to shift and be squeezed.

Some believe our pricing model is ‘too good to be true’ but the cloud deployment of our single version system means there is no hardware for you to buy, no software for you to support, no costly IT teams to manage and no on-going maintenance or updates to pay for.

Our pricing includes hosting, set-up, support and training, system maintenance, system upgrades and patches, meaning no nasty surprises.

There’s no catch. By leveraging cutting edge technology we can keep costs to an absolute minimum.

2. Fast deployment. Another benefit of the cloud is that we can integrate seamlessly with your existing systems and have you fully up and running on CloudMargin within weeks. In tandem to this, we are able to provide a username and password to our trial environment the very same day you inquire about our system. This is a drastic change to the laborious and painstakingly-long drawn out process the industry is used to when dealing with incumbent legacy solutions, which usually take months, if not years to deploy.

3. Connections to market infrastructure and counterparties through our growing list of integrations. Via SWIFT, AcadiaSoft and the bespoke links available on the platform, we offer highly automated and seamless connectivity to your custodians, counterparties and clearing brokers. As an agile cloud-based solution, we are constantly enhancing our platform, including the partnerships and integrations that are made available to you.

4. Access to an ever-growing community. The disruptive nature of our solution is the foundation of our success and in turn, has allowed us to create something that others cannot; a community.

Through CloudMargin, we have been able to build a community of users (rather than simply a client base) and deliver unprecedented levels of flexibility.

Flexibility for our users in how they connect and who they connect to, flexibility in breadth of functionality, and flexibility to be able to rapidly respond to the demands of the ever-changing regulatory landscape.

5. Always be one step ahead. CloudMargin, of course, is the first cloud-based collateral management workflow tool to enter the market-place; helping firms large and small transform the way they manage their collateral programme on a highly robust and scalable platform.

Unlike other on-premise software providers that are now launching cloud-based products, CloudMargin was born in the cloud and is therefore set up to move quickly, respond to regulatory change and develop functionality that benefits the whole of the CloudMargin community; all whilst saving you time and money.

In summary, you will continue to get the most forward-thinking, proactive solution that is helping to shape the future of this industry; keeping your firm ahead of the curve.

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