Liquidity Asset Liability Management Solutions Global Market Report 2024

The liquidity asset liability management solutions market size has grown strongly in recent years. It will grow from $1.87 billion in 2023 to $2.04 billion in 2024 at a compound annual growth rate (CAGR) of 9.5%. The growth observed during the historical period can be attributed to several factors, including the adoption of advanced technology for modeling and analysis, the expansion of digital banking and fintech innovations, increased demand for real-time liquidity monitoring and reporting, heightened focus on stress testing and scenario analysis, and the growing emphasis on risk management practices within financial institutions.

The liquidity asset liability management solutions market size is expected to see strong growth in the next few years. It will grow to $2.99 billion in 2028 at a compound annual growth rate (CAGR) of 10%. The anticipated growth in the forecast period can be attributed to several factors, including the evolving regulatory landscape, the adoption of cloud-based solutions, an increased focus on sustainability, a shift towards customer-centricity, and an emphasis on user experience and explainability. Major trends expected in this period encompass integration with blockchain technology, advancements in analytics and big data management, the implementation of robotic process automation, and the adoption of cybersecurity mesh architecture.

The upward trend in digital transformation initiatives is poised to propel growth in the liquidity asset liability management solutions market. Digital transformation, characterized by the integration of digital technology across organizational processes, drives significant operational changes and enhances value delivery to customers. The increasing demand for efficiency, productivity, security, agility, remote work capabilities, and data-driven decision-making fuels the adoption of digital transformation strategies. Liquidity asset liability management solutions play a pivotal role in facilitating digital transformation within financial institutions by offering advanced analytics, automation, and real-time insights into liquidity risk management. Notably, in February 2024, according to Kissflow Inc., a US-based software company, digital transformation is prioritized by 74% of organizations, surpassing cybersecurity and cloud implementation. Moreover, approximately 70% of companies either have a digital transformation strategy in place or are actively pursuing one. Consequently, the surge in digital transformation initiatives underpins the growth trajectory of the liquidity asset liability management solutions market.

Leading players in the liquidity asset liability management solutions market are innovating with advanced technologies to develop cutting-edge products such as RiskIntegrity Investment Insight. This solution leverages sophisticated technology to forecast financial statements under diverse scenarios, empowering insurers to optimize liability-aware investment portfolios, strategic asset allocation, and portfolio risk management. For example, Moody's Corporation, a US-based financial services company, launched RiskIntegrity Investment Insight in November 2021, catering to the needs of insurance businesses. This asset-liability management (ALM) tool enables insurers to construct liability-aware investment portfolios and assess investment strategies across various business indicators. By addressing operational challenges, managing investment plans, and responding to regulatory changes, this software-as-a-service (SaaS) platform facilitates fast and on-demand analytics, leveraging Moody's Analytics proprietary data and models. It empowers insurers to devise new investment strategies, enhancing risk-adjusted returns and enabling informed decision-making in the insurance sector.

In November 2023, Cetera Financial Group, a US-based independent financial services company, completed the acquisition of Avantax for $82 billion. This strategic move aims to drive growth, enhance competitiveness, and generate value for clients and shareholders by leveraging expanded services, a diversified client base, geographic reach, synergies, and strategic positioning in the financial services industry. Avantax, a US-based company specializing in providing tools and services for effective asset and liability management, complements Cetera Financial Group's objectives. The acquisition strengthens Cetera Financial Group's capabilities and market presence, positioning the company for sustained growth and success in the dynamic financial services landscape.

Major companies operating in the liquidity asset liability management solutions market are The International Business Machines Corporation, Oracle Corporation, SAP SE, Fiserv Inc., Infosys Limited, Fidelity National Information Services Inc., Polaris Financial Technology Limited, Wolters Kluwer N.V., Moody's Corporation, Experian Information Solutions Inc, Finastra International Limited, Carta Inc., Intellect Design Arena Limited, Israel Vesttoo, Betterment, Axiom Software Laboratories Inc., Arrakis Finance, Tenderize, FalconX, Keyrock, Transcend Street, Flowdesk SAS, Fnality International Limited, AcreTrader, Globacap Ltd.

North America was the largest region in the liquidity asset liability management solutions market in 2023. The regions covered in the liquidity asset liability management solutions market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the liquidity asset liability management solutions market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Liquidity Asset Liability Management (ALM) solutions are financial tools and strategies designed to aid financial institutions in effectively managing liquidity risk and optimizing their balance sheets. These solutions typically comprise various tools for projecting cash flows, performing scenario analysis and stress testing, and collateral management. They play a critical role in helping financial institutions manage liquidity risk, optimize their balance sheets, and ensure compliance with regulatory requirements.

The primary components of liquidity asset liability management solutions include hardware, solutions, and services. Liquidity asset liability management (ALM) hardware comprises physical components such as servers, storage devices, and networking equipment utilized to support ALM software applications and processes. These hardware components are deployed across both on-premises and cloud environments by institutions including banks, broker dealers, specialty finance firms, and wealth advisors.

The liquidity asset liability management solutions market research report is one of a series of new reports that provides liquidity asset liability management solutions market statistics, including liquidity asset liability management solutions industry global market size, regional shares, competitors with a liquidity asset liability management solutions market share, detailed liquidity asset liability management solutions market segments, market trends and opportunities, and any further data you may need to thrive in the liquidity asset liability management solutions industry. This liquidity asset liability management solutions market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The liquidity asset liability management solutions market consists of revenues earned by entities by providing services such as balance sheet management and optimization, treasury management advisory services, funding strategy development, stress testing, and scenario analysis. The market value includes the value of related goods sold by the service provider or included within the service offering. The liquidity asset liability management solutions market also includes sales of servers for hosting the software, storage devices for storing data, networking equipment for connectivity, and backup systems for data protection. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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