The economic environment of the post-pandemic era has been particularly challenging.
Workforce shortages and drastic shifts in consumer spending due to COVID-19 fears
and widespread lockdowns throttled businesses. Supply chain disruptions, geopolitical
uncertainties and unprecedented fiscal stimulus programs contributed to inflation
levels unseen in decades.
This situation led central banks to pursue tighter monetary policies, with interest rates quickly rising in response. It’s uncertain whether inflation can be controlled successfully without tipping major economies into recession. This economic environment stresses banks’ assets and liabilities – challenging their balance sheets and liquidity risk management.
At the same time, fast development on data and analytics technology has introduced vast challenges and opportunities to the financial service industry, particularly in the adoption of machine learning and AI, digitalization and cloud. As part of the core banking risk management function, asset liability management (ALM) transformation and modernization is core to banks’ future.
Through our strategic partnership, SAS and Microsoft help customers drive growth and innovation by addressing their most critical analytical challenges. We help banks manage their liquidity and interest rate risks in these times of market volatility by using SAS® Asset and Liability Management, powered by Kamakura Risk Manager on Microsoft Azure. Combining this offering with the power of generative AI, customers will be able to assess risks in real time through natural language queries.