New-York-based banking giant, JP Morgan, has entered into a strategic alliance with business-to-business securities lending firm, Sharegain, to boost its securities agency lending offering. Sharegain announced the deal on Tuesday, noting that the alliance will enable JP Morgan’s agency lending offering to be more accessible to new wealth managers and online broker participants.

JP Morgan Targets Aggregators

Harpreet Bains, the Global Head of Product Management at JP Morgan’s Agency Securities Finance division, explained in a statement that the deal will enable the multinational financial services company to “address the growing needs of the aggregator segment.” Bains noted that there is an increasing demand for scalable solutions among aggregators who want to offer securities lending to their end customers “without the time and cost burden of implementing complex technology.”

However, with the integration of JP Morgan’s technology with Sharegain’s SLTech solution, aggregators will get a new and major securities lending revenue source without the complexities that arise when they expand their offerings to include securities lending, Bian added.

Through its solutions, Sharegain democratizes the securities lending market for its clients, opening up revenue-generating opportunities previously only available to top financial firms. The company’s digital solution enables online brokers, private banks, wealth managers, asset managers and custodians to lend their stocks, bonds and exchange-traded funds, generating additional revenue for their own business as well as their clients.

“This strategic alliance represents another validation of Sharegain’s industry-leading technology and expertise,” Boaz Yaari, the CEO and Founder of Sharegain, explained.

Goldman Sachs to Sell GreenSky

Meanwhile, Goldman Sachs, another US banking giant also based in New York, has commenced a process to explore the sale of GreenSky, its financial technology (fintech) unit, Reuters reported on Tuesday, attributing the information to David Solomon, the company's CEO.

The deal comes at a period of financial difficulty at Goldman Sachs. In January, the Wall Street giant reported that its platform solutions business lost $3.03 billion in about three years. The business includes the multinational investment bank’s transaction banking, credit card and fintech businesses.

Furthermore, Goldman Sach’s newly created Platforms Solutions reported a pre-tax loss of $1.2 billion for the first nine months of 2022, according to Reuters.

Meanwhile, in January, Goldman Sachs trimmed its $60 billion commitment to alternative investments to reduce the burden on its financial performance and revenue. In the same month, the American banking giant pruned its workforce, cutting 3,200 roles to fight worsening economic conditions and to reduce operating costs.

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