Since the global financial crisis, regulators have aimed to reduce systemic risk and increase transparency by expanding the use of collateral—the exchange of cash or securities to mitigate default risk in financial transactions. The collateral market is expected to continue to innovate and diversify in the future, driven by the ongoing demand for liquidity and efficiency. Collateral optimisation is now the concern of both the back and the front office as funding costs and collateral based discounting should be incorporated in pricing before a derivative is traded. Opportunities for transformation must be strategically assessed as there is no one-size-fits-all model.