The relentless profitability pressures imposed on today’s finance sector have been triggering various banking organizations and specialty finance companies to integrate next-generation technologies with their liquidity asset liability management operations. In addition, as poor liquidity risk management systems can cost a company a fortune, it is further strengthening the need for applying technological advancements in liquidity asset liability management solutions to incur a significant rise in profitability.
With a mounting number of financial institutions undertaking a rigorous approach while dealing with risk management demands, the liquidity asset liability management solutions market in rapidly moving towards a smarter future. The growing adoption of cutting-edge technologies such as Artificial Intelligence (AI) and machine learning for predictive analytics is shaping the emerging trends in this landscape, underscoring the importance of technological integration into liquidity asset liability management solutions.
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Transparency Market Research’s recent study examines the factors that are catalyzing technological transformations in the liquidity asset liability management solutions market, to project how the future will look for this landscape. This study offers value-based and actionable insights about the growth prospects of the market, for stakeholders to make more informed liquidity asset liability management-related decisions.
Financial institutions are showing inclination towards employing AI to understand their clients, ensure compliance, improve analytics, and produce better forecasts based on existing data. Eventually, leading players in the liquidity asset liability management solutions landscape are streamlining their business strategies to stay resilient and withstand potential technological disruptions in the industry, even as new competitors crowd the scene. Being a popular technology with guaranteed returns on investment, the application of AI in the liquidity asset liability management solutions landscape is expected to emerge as a winning strategy for stakeholders in the coming years.
Analytics in the liquidity asset liability management solutions market entails huge volumes of data that is complex, and Big Data technology has reshaped the finance sector with improved metrics for cognitive processing and forecasting. Stakeholders in the industry are likely to focus on employing Big Data for accurate results at each step. The integration of Big Data technology into liquidity asset liability management solutions will lead them to achieving faster results, which, in turn, will allow for newer risks to be uncovered.
Market to Grow Amid Increased Financial Inclusivity and Stringent Regulatory Compliances
Increasing growth of the liquidity asset liability management solutions landscape is mainly triggered by the growing volume of transactions and burgeoning need for risk management solutions. With the rise in the number of financial transactions taking place, both, online and offline, there is the heightened need to manage risk and maintain an acceptable profitability level of various financial transactions for various banking organizations.
Leading banking institutions are adopting technologically-advanced liquidity asset liability management solutions to ensure the efficient and coordinated management of sensitive banking operations with a rapidly multiplying number of individuals with at least one bank account or an account with a mobile money provider.
The global market for liquidity asset liability management solutions landed a valuation of ~ US$ 1 billion in 2018, and is expected to witness 4.5% year-over-year growth in 2019. While the market is likely to witness healthy growth in the coming years, the implementation of strict regulations and stringent norms adds to the shareholder pressures of increased margin and reduced returns. Tightening regulations in the finance sector are making the structure of the businesses of financial institutions more complex, creating numerous challenges in developing apt liquidity asset liability management solutions that can suit their specific requirements.
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Emerging Opportunities in Europe’s Finance Sector; North America to Lead the Pack
With the advantage of being a strong economy and by virtue of being the first adopters of technology, North America is currently a prominent region in the liquidity asset liability management solutions market. This is set to remain so, with the United States keeping its position, while the positive growth prospects of the European finance industry are expected to create new opportunities for stakeholders in its liquidity asset liability management solutions market. Despite an upsurge in financial activities in Asia Pacific, especially in India and China, which are supporting the liquidity asset liability management solutions market in this region, developed regions are creating more lucrative avenues of growth for market players.
Considering the changing consumer experiences due to the proliferation of technology, and the security concerns that go hand in hand, business strategies that focus on high-tech security protocols in tech-driven asset liability management solutions can fetch profits in developed markets. The adoption of hardware-based solutions for liquidity asset liability management is plummeting rapidly, as end users turn toward software-based solutions to sync with the growing digitalization in the finance sector. Seeking high value growth opportunities, mainly in developed regions, stakeholders are employing strategies to strengthen the presence of their companies by not only expanding their product portfolios but also increasing their customer data base and strengthening their long-term business strategies.
There is a growing trend among key players of strategically acquiring smaller firms that offer technological solutions, giving them a competitive edge to consolidate their global presence. Leading players in the market are partnering with software companies as well as financial organizations to co-innovate high quality solutions and services to expand their presence in developing countries. For instance, Fidelity National Information Services, Inc. (FIS) recently announced that it formed a joint venture with Banco Bradesco, a leading Brazil-based bank, in order to provide financial services and solutions.
Within the liquidity asset liability management solutions market, customer retention continues to remain a priority. Wolters Kluwer – a leading stakeholder in the liquidity asset liability management solutions market – recently declared that ~78% of its revenue is recurring, as it gives customer satisfaction and retention immense importance throughout its race in this landscape. Leading companies in the market are likely to continue focusing on improving customer experience, which is expected to have a significant impact on the revenue and the stock value of their companies.
Read TMR Research Methodology at: https://www.transparencymarketresearch.com/methodology.html
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