ALM technology systems 2023: market update and vendor landscape

Chartis’ 2023 asset-liability management (ALM) research report returns to the key themes highlighted in the 2021 report. This update re-evaluates the complex ALM framework, which broadly comprises distinct segments that include funds transfer pricing, liquidity risk management and reporting, capital and balance sheet optimisation, and ALM analytics and quantification.

The report examines the challenges firms face as industry and regulatory standards push them to integrate their ALM operations and unify their ALM policies under a comprehensive internal strategy. Among the key trends highlighted is the renewed focus on liquidity risk management in the context of different types of institutions and their specific liquidity dynamics. Also covered is the adjacent focus on interest rate risk, including ‘straightforward’ interest rate risk.

The report also highlights trends in the regionally defined, fragmented vendor market, exploring the different ALM requirements that emerge from varying perspectives within an institution, from the standpoint of asset-liability committees and the treasury departments. The distinction is made between operational ALM, which focuses on day-to-day ALM calculations, and ALM from a trading and hedging perspective. The approach to ALM that closely aligns with regulatory reporting and compliance is also noted and, in addition to regional trends, the institution types, and product and balance sheet strategies that drive different ALM requirements. Finally, these trends are considered through operational and technological lenses to determine how financial institutions and the vendor landscape are evolving under new pressures.

Download the Chartis ALM technology systems 2023 report

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