Finastra rolls out asset liability solution amid rising interest rates

Technology provider Finastra is launching an asset liability management solution aimed at helping small- and medium-sized banks with their balance sheet and compliance needs. The cloud-based software-as-a-service (SaaS) solution, named ALM IQ, is a platform-agnostic microservice designed to help banks with data consolidation, operational efficiency and regulatory compliance, according to Finastra. “[Small banks] see that the impact the [increased] interest rate is having, it’s really material,” Mehdi Bouasria, product general manager of the treasury and capital markets business unit at Finastra, told Bank Automation News . “They need more capabilities for simulations,” he said, noting 80% of smaller banks still use Microsoft Excel but are looking for systems that will “help minimize human risk of error.” [caption id="attachment_220352" align="alignright" width="300"] Image by CanStock [/caption] Streamlining compliance ALM IQ is a streamlined version of London-based Finastra’s ARC balance sheet management and regulatory compliance platform, which is used by larger banks, including Paris-based, $1.7 trillion Societe Generale , according to the company. Finastra clients, including $380 million FinWise Bank and $283 million Delta Bank , will have access to the solution through Finastra’s open platform FusionFabric.cloud , according to Finastra. ALM IQ was in development for two years and several features are carried over from ARC, including cashflow forecasting, delta scenarios for future economic trends and interest rate risk measuring and reporting, Bouasria said. The new solution is expected to go live in March, with software updates being pushed to the platform regularly to avoid disruption to business operations, the release from Finastra said. The cloud shift The shift to the cloud is accelerating for financial institutions. In 2022, 1,580 of the 2,000 digital banking decision-makers surveyed for IBM ’s “Foundations of Banking Excellence,” report said they were in the planning stages of moving their bank’s systems to a cloud-based one, although 1,420 acknowledged that it was difficult to fully embrace the potential of digital transformation without a cloud strategy in place. The move toward cloud architecture for many banks in the wake of the COVID-19 pandemic and the need for a more agile solution with shorter downtimes were the reasons for developing ALM IQ, Bouasria said. “COVID accelerated cloud adoption and the cloud appetite from smaller banks,” he said. “We are living now during the generational peak of inflation, and for the smaller banks, there is a shift and the convergence from [updating balance sheets] from quarterly to at least monthly.” Bank Automation Summit US 2023, March 2-3 in Charlotte, is a crucial event on automation technology in banking and will feature a fireside chat with Brinda Bhattacharjee of Goldman Sachs & Co . Register here. <a class="fui-Link ___m14voj0 f3rmtva f1ern45e f1deefiw f1n71otn f1q5o8ev f1h8hb77 f1vxd6vx f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f9n3di6 f1ids18y fygtlnl f1deo86v f12x56k7 f1iescvh ftqa4ok f50u1b5 fs3pq8b f1hghxdh f1tymzes f1x7u7e9 f1cmlufx f10aw75t fsle3fq" tabindex="-1" title="https://bankautomationsummit.com/?utm_source=Editorial&utm_medium=BAN_Site&utm_campaign=Editorial&utm_content=Home" href="https://bankautomationsummit.com/?utm_source=Editorial&utm_medium=BAN_Site&utm_campaign=Editorial&utm_content=Home&__hstc=41615677.3fe700e68891f0bfd867036c89aa2d86.1650376353803.1675795711914.1675799958505.806&__hssc=41615677.4.1675799958505&__hsfp=2478973190" target="_blank" rel="noopener noreferrer" aria-label="Link Learn more">Learn more and <a class="fui-Link ___m14voj0 f3rmtva f1ern45e f1deefiw f1n71otn f1q5o8ev f1h8hb77 f1vxd6vx f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f9n3di6 f1ids18y fygtlnl f1deo86v f12x56k7 f1iescvh ftqa4ok f50u1b5 fs3pq8b f1hghxdh f1tymzes f1x7u7e9 f1cmlufx f10aw75t fsle3fq" tabindex="-1" title="https://bankautomationsummit.com/register/?utm_source=Editorial&utm_medium=BAN_Site&utm_campaign=Editorial&utm_content=Register" href="https://bankautomationsummit.com/register/?utm_source=Editorial&utm_medium=BAN_Site&utm_campaign=Editorial&utm_content=Register&__hstc=41615677.3fe700e68891f0bfd867036c89aa2d86.1650376353803.1675795711914.1675799958505.806&__hssc=41615677.4.1675799958505&__hsfp=2478973190" target="_blank" rel="noopener noreferrer" aria-label="Link register for Bank Automation Summit US 2023">register for Bank Automation Summit US 2023 .

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Finastra rolls out asset liability solution amid rising interest rates

Cloud-based platform reduces banks’ total cost ownership

Embedded finance is the ‘golden goose’ of fintech

5 questions with … Banco Santander Global CIO David Chaos

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