Published: Aug, 2019
Liquidity Asset Liability Management Solutions Market in Brief
- The liquidity asset liability management solutions market is expected to register a CAGR of ~ 4% between 2019 and 2027. The market is projected to be driven by rapid increase in financial inclusion, globally.
- The global liquidity asset liability management solutions market is expected to reach ~ US$ 1.5 Bn by 2027, from ~ US$ 1.1 Bn in 2019. Increase in liquidity and diversification of loan portfolios are boosting the liquidity asset liability management solutions market.
- The liquidity asset liability management solutions market in Asia Pacific is anticipated to expand at a rapid pace during the forecast period, followed by Europe.
- North America remains the dominant leader in the global liquidity asset liability management solutions market, with revenue in 2019 estimated at ~ US$ 680 Mn. Rising number of bank account holders as well as accounts on mobile payment services application are expected to exponentially drive the liquidity asset liability management solutions market.
- Asia Pacific is projected to see high growth in the global liquidity asset liability management solutions market during the forecast period. This is due to an increase in the volume of financial transactions, specifically in the region.
Liquidity Asset Liability Management Solutions Market: Definition
- The liquidity asset liability management solutions market report provides analysis of the global liquidity asset liability management solutions market for the period of 2017–2027, wherein, 2018 is the base year, and 2019 to 2027 is the forecast period. Data for 2017 has been included as historical information.
- In this report, we analyze the growth drivers that are increasing the value of the liquidity asset liability management solutions market, and how financial organizations can reduce and measure the risks related to liquidity and asset and liabilities portfolios. Moreover, the demand for the monetization of financial transactions for risk calculation has accelerated the market.
- Organizations are adopting and updating liquidity asset liability management solutions rapidly due to their numerous benefits such as reduction in paperwork and manual errors, enhanced response time to manage loans and asset portfolio, reduction of risks related to interest rate and foreign exchange, and more.
Asia Pacific Liquidity Asset Liability Management Solutions Market: Snapshot
Asia Pacific is one of the fastest growing regions, where the earning capacity of individuals is increasing drastically. India and China have experienced exponential financial inclusion due to foreign investments.This has led to the increased role of banking and financial institutions. The role of liquidity asset liability management solutions has increased to manage the risks related to currency, interest rates, investments, and to monitor derivative transactions. This solution helps financial institutions specifically maintain the optimum balance between liquidity asset and liability to derive maximum profit.
Key Growth Drivers of the Liquidity Asset Liability Management Solutions Market
- Rapid Increase in Financial Inclusion, Globally – Rise in the volume of transactions and increasing need for solutions to measure and manage risk and regulatory compliances have led to an increase in the demand for liquidity asset liability management solutions.
- Increase in Liquidity and Diversification of Loan Portfolio – The demand for liquidity asset and liability management solutions has increased to effectively analyze and reduce financial risks. Financial institutions or banks can easily analyze risk factors and reduce complexity by implementing a consistent framework with the help of these solutions.
Key Challenges Faced by Liquidity Asset Liability Management Solutions Market Players
- The initial deployment cost of a liquidity asset liability management solution is high, owing to the initial outlay, implementation, customization, and training of employees. Integration of this solution with a conventional system within the bank may lead to low productivity, initially. This is restraining the growth of the liquidity asset liability management solutions market.
- Concerns over breach of personal as well as financial information from banks may reduce the trustworthiness of digital platform and solutions. Increasing number of financial fraud cases is decreasing the potential opportunities of the liquidity asset liability management solutions market.
Liquidity Asset Liability Management Solutions Market: Competitive Landscape
- In May 2019, National Housing Bank (NHB) of India planned to tighten the norms for housing finance companies (HFCs) related to asset liability management. To eliminate non-performing assets, NHB may ask financial institutions to submit a weekly report related to assets and liabilities. This may lead to the demand for liquidity asset liability management solutions that have the capability to manage such information on a daily basis.
- In March 2019, Wolters Kluwer’s Finance, Risk & Reporting (FRR) business and Equifax, a global data, analytics, and technology company, partnered to provide an end-to-end Current Expected Credit Losses (CECL) solution that will comply with new standards instituted by the Financial Accounting Standards Board (FASB).
- In March 2019, Wolters Kluwer’s ComplianceOne Lending and CASH Suite solution was selected by Grow Financial Credit Union. This will enable Grow Financial Credit Union to manage compliance risk as well as streamline its commercial lending processes.
- In September 2018, Taiwan Business Bank (TBB) selected Kamakura's solutions for Basel III liquidity management, asset-liability management (ALM), and funds transfer pricing (FTP). This solution has the ability to analyze the interest risk and liquidity risk on a daily basis.
Liquidity Asset Liability Management Solutions Market: Company Profile Snapshot
Moody's Corporation: Founded in 1909, Moody's Corporation is a prominent global company that provides research and credit ratings regarding securities and debt instruments, as well as software, research, and advisory services in financial risk management and economic analysis. The company provides credit ratings, research, and risk analysis through Moody's Investors Service, Inc., and financial intelligence and analytical tools through Moody’s Analytics, Inc. It also provides quantitatively-derived credit scores, earning solutions, and certification services.
Wolters Kluwer: Founded in 1993, WoltersKluwerI is a multinational company that is specialized in providing services, software solutions, and professional information in various sectors such as risk, finance, tax, and compliance. The company caters to nearly 93% of the Fortune 500 companies and nearly 90% of top global banks, by serving in almost 180 countries and operating in more than 40 countries.
Experian Information Solutions, Inc.: Founded in 1992, Experian Information Solutions, Inc. is specialized in providing solutions by integrating data and analytics with technology in managing credit risk, preventing fraud, targeting marketing offers, and automated decision making. The company caters to banking, communication, energy, FinTech, and other industries across the globe.
Other major players operating in the global liquidity asset liability management solutions market and profiled in the report include Fidelity National Information Services, Inc., Finastra, Fiserv, Inc, Infosys Limited, International Business Machines Corporation, Oracle Corporation, Polaris Financial Technology Limited, and SAP SE. Companies are shifting toward AI and machine learning, and up-scaling their skills to gain a competitive advantage in the liquidity asset liability management solutions market.
Global Liquidity Asset Liability Management Solutions Market: Taxonomy
Liquidity Asset Liability Management Solutions Market by Component
Liquidity Asset Liability Management Solutions Market by Institution
- Specialty Finance
- Wealth Advisors
Liquidity Asset Liability Management Solutions Market by Region
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa
- Latin America
- Rest of Latin America
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