Before the last crisis, ALM systems were not utilized to the same extent within the financial sector. However, this crisis not only exposed the need to conduct more effective balance sheet risk management, but also gave rise to more stringent regulation.
Post crisis, institutions have faced increasing demands in the areas of interest rate risk and liquidity requirements.
As a result, regulatory pressure has triggered a paradigm shift in the role of the ALM, placing a greater focus on data processing and reporting, rivaling traditional activities such as balance sheet management and analysis. To that end, the industry focused on allocating resources to improve and automate processes for use with ALM systems. The majority of these processes provide key metrics to satisfy management and regulatory requirements.
Technology leveraged by existing ALM solutions have run into challenges that have plagued the industry for the last several years. However, the rise of next generation technologies such as Big Data and Artificial Intelligence will help address some of these issues.
MAT arises with the objective of responding and providing solutions to current challenges faced by financial institutions.
This new generation ALM tool was developed by a team of experts with extensive experience in ALM projects carried out in financial institutions at an international level. The experience gained has provided knowledge on real concerns of the industry coupled with common practices observed in the market. To that end, the tool was developed entirely with the user in mind.
Unlike traditional tools, MAT has been developed using a new technological environment to include all the advantages and more that are offered by other ALM solutions. The ALM solution was built using Big Data technologies that allow simulations at the contract level, ability to archive parameters of the calculation engine and execute stochastic models in a short period of time. The tool is characterized by combining the three layers of an ALM architecture in a single environment: data provisioning, calculation engine and advanced reporting.
MAT offers a revolutionary solution that introduces a paradigm shift in the use of technology to effectively conduct balance sheet management.