Optimized Setup for Bank Asset Liability Management for Integrated Infrastructure

The modern era and how Asset Liability Management is a key factor companies need to consider

In the recent years ALM or Asset Liability Management has become more and more important as the risks from interest rates have kept increasing. It is of the most utter importance that companies now a day consider this as a key factor when dealing with the amount of funds directed for integrated infrastructure. Especially when it comes to banks we see that the investments done on innovation are highly surpassed by the funds directed towards integrated infrastructure, this is what the classical view of integrated infrastructure demands.

Integrated infrastructure, to build it or to outsource it

In the present era new models are rising and companies have to sail through and endless sea of possibilities to decide which option may be better for them. The question as I like to see it has reduced from “what type of integrated infrastructure?” to “should my company buy an integrated infrastructure from another enterprise that specializes in providing space and service to other companies.

Throughout the years, technological development has kept growing at impressive rates and now the answer is clear, it has become much cheaper to outsource integrated infrastructure. It is both more profitable for the company providing the service and the servers and to the bank buying this space because of a simple reason, optimization, the service provider can try to optimize the usage of the space it provides by selecting different clients around the globe that use different amounts of space during the day than during the night (while it is daytime in other parts of the world).

Optimized ALM and treasury in Banks

ALM has become increasingly correlated with treasury in banks as for financial institutions like banks they need to be connected to meet their goals in the most profit efficient way. Together they are in charge of managing liquidity, funding and financial risk. This all can be improved when planning ahead just like we can see in banks that use India integrated infrastructure. The idea for an optimized setup for banks regarding ALM for integrated infrastructure is now a fast, automatized system that will be ready to prevent risks by following the increasingly changing interest rate.

In order to apply ALM for banks that utilize an integrated infrastructure that are provided by a third party they will need to setup investing in IT innovation to keep their integrated infrastructure following the different factors that may affect their liquidity. We can now see that the change in the global scene regarding the increasing risk and the need for banks to optimize their ALM has only one solution, investing a much greater percentage of their funds in IT innovation is a necessity and only by doing so will banks keep up with the ever changing global panorama where no one knows that can happen but a well developed system might prevent large risks leading to increasing profits.

Author Bio

Candice Hubbard is the general manager in a bank in India; he is in charge of Asset Liability Management. India integrated infrastructure is used by his bank from a third party.