What Has Been the Growth of the Liquidity Asset Liability Management Solutions Market So Far?
The liquidity asset liability management solutions market has seen considerable growth due to a variety of factors.
• In recent times, the market size for liquidity asset liability management solutions has seen quick expansion. It's projected to rise from $2.04 billion in 2024 to $2.25 billion in 2025, showcasing a compound annual growth rate (CAGR) of 10.2%.
This growth over the historical period is largely due to the adoption of cutting-edge technology for modeling and analysis, the growth of digital banking and fintech advancements, a need for immediate liquidity oversight and reporting, as well as an increased emphasis on stress testing and scenario analysis.
What Is the Forecasted Market Size and Growth Rate for The Liquidity Asset Liability Management Solutions Market Size In The Coming Years?
The liquidity asset liability management solutions market is expected to maintain its strong growth trajectory in upcoming years.
• The market for liquidity asset liability management solutions is projected to witness robust expansion in the upcoming years. The market value is expected to reach $3.29 billion by 2029, displaying a compound annual growth rate (CAGR) of 9.9%.
The growth expected in the forecast period can be linked to the ever-changing regulatory landscape, the adoption of cloud-based solutions, emphasis on sustainability and customer-centricity, improved user experience, and explainability. The forecast period is set to see major trends like the incorporation of blockchain technology, the use of advanced analytics and big data management, the growth of robotic process automation, and the adoption of cybersecurity mesh architecture.
What Factors Are Driving Growth In The Liquidity Asset Liability Management Solutions Market?
The surge in digital transformation is anticipated to catalyze the expansion of the liquidity asset liability management solutions market. This transformation integrates digital technology into all facets of an organization, greatly altering business operations and how they deliver value to customers. The growing need for efficiency, productivity, protection, flexible remote work structure, and data-driven decision-making are fueling the digital transformation demand. These solutions aid financial institutions in executing digital transformation by offering advanced analytics, automation, and instant insights into liquidity risk management. For instance, as reported by Kissflow Inc., a US software firm, in February 2024, 74% of organizations prioritized digital transformation, overtaking cybersecurity (73%) and cloud integration (65%). Moreover, 70% of companies possess a digital transformation strategy or are embarking on developing one actively. Consequently, the surge in digital transformation underpins the growth of the liquidity asset liability management solutions market.
What Are The Main Segments Of The Global Liquidity Asset Liability Management Solutions Market?
The liquidity asset liability management solutions market covered in this report is segmented –
1) By Component: Hardware, Solution, Services
2) By Deployment: On Premises, Cloud
3) By Institution Type: Banks, Broker Dealers, Specialty Finance, Wealth Advisors
Subsegments:
1) By Hardware: Servers and Storage Devices, Networking Equipment, Data Processing Hardware
2) By Solution: Liquidity Risk Management Software, Asset and Liability Management Software, Stress Testing and Forecasting Solutions
3) By Services: Implementation Services, Consulting Services, Maintenance and Support Services
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How Are Emerging Trends Reshaping The Dynamics Of The Liquidity Asset Liability Management Solutions Market?
Significant companies in the liquidity asset liability management solutions market are creating breakthrough products using cutting-edge technologies like Artificial Intelligence (AI) and Machine Learning (ML). These technologies are used to boost predictive analysis, automate decision-making procedures, and refine risk evaluations by effectively examining large datasets. For instance, Finastra, a leading financial software firm based in the UK catering to financial organizations of varying sizes, introduced its product, Finastra asset-liability management (ALM), a risk management solution for banks, in January 2023. ALM IQ is aimed at assisting small-scale banks in efficiently managing risk and regulatory compliance- vital aspects of ALM. This solution provides tools for evaluating liquidity risk, interest rate risk, and ensuring regulatory compliance, all of which are crucial for ALM frameworks. ALM IQ aids local banks in sustaining balanced asset-liability tactics, guaranteeing their financial steadiness and robustness by bolstering risk management and regulatory abilities.
Who Are the Key Players In The Liquidity Asset Liability Management Solutions Market?
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.
What Is The Most Dominant Region In The Liquidity Asset Liability Management Solutions Market?
North America was the largest region in the liquidity asset liability management solutions market in 2024. 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.
