According to latest report from leading analyst firm, Chartis Research, the global ALM and liquidity risk management technology market is to grow to $684m by 2013 at a compound annual growth rate of 11.4%.
In the last 18 months, Chartis has observed a steady increase in demand for asset and liability management (ALM), liquidity risk and market risk solutions. Key drivers for growth are:
â¢ Fundamental review of risk management functions due to the recent financial crisis
â¢ Renewed focus on liquidity risk management
â¢ Integration of ALM, ERM and finance systems â eradicating silo-based point solutions
â¢ Increased demand by the insurance industry
â¢ Cost reduction
â¢ Increased demand by emerging markets
âThe most compelling trend is the requirement for more integration across these traditionally silo-based systems and the appetite of financial institutions to upgrade their relatively mature and outdated software applicationsâ comments Peyman Mestchian, Head of Advisory Board at Chartis.
âOn the supply side of the market, we are seeing technology vendors coming into this space from several different directionsâ, comments Peyman Mestchian âthese include established front-office and treasury management players, financial technology and ERP vendors and pure-play risk and compliance software providersâ.
Chartisâ latest report looks at both the demand and supply side of the market for ALM and liquidity risk management technology. It covers the main business and systems requirements, trends and best practices. The report also describes the competitive landscape and forecasts of market size and expenditure.