CloudMargin and Finastra to build collateral solution

London-based fintech CloudMargin has teamed up with tech firm Finastra to deliver a new collateral and margin management solution, which it says meets a need for cloud-based services that has been accelerated by Covid-19.

“The shift away from in-house builds and less agile solutions toward commoditised processes has already hit its inflection point and been accelerated by the Covid-19 crisis,” Stuart Connolly (pictured) told Global Investor on Thursday.

“The future pathway is beginning to feel obvious across all types of fintech solutions servicing the capital markets industry. We have already witnessed the trend of firms adopting our modern, cloud-native SaaS (Software-as-a-Service) solution in large numbers over other vendor offerings.”

The solution, known as Collateral Management as a Service, is powered by CloudMargin and available through Finastra’s FusionFabric.cloud platform. It is designed to optimise the collateral management process by facilitating end-to-end straight-through processing of derivatives transactions and all associated collateral management workflows.

Michael Henssler, Finastra’s general manager, treasury and capital markets and risk, said the solution will meet increased demand for collateral services, and complement Finastra’s core treasury and capital markets products as well as its front-to-back solution available via its cloud platform.

“It will enable us to offer a cost-efficient, agile solution to onboard our customers quickly and help automate their collateral operations,” he said. “CloudMargin’s solution is built specifically for the cloud and is able to scale for clients large and small, so it is a natural fit.”

CloudMargin now has more than 20 integration partnerships, with strategic investors including Deutsche Bank, Citi, Deutsche Boerse and IHS Markit. “The integration of our collateral management workflow tool into Finastra’s treasury and capital markets solutions creates a strong value proposition,” Connolly said.

CloudMargin said last month that it is pursuing a program of geographical expansion, product development and recruitment after closing a $15 million (£11.4 million) funding round supported by Deutsche Boerse and other investors. In April, the fintech hired David White as chief commercial officer to drive its international expansion plans.