According to our latest market study on "Liquidity and Asset Liability Management Solutions Market Forecast to 2028 - COVID-19 Impact and Global Analysis - by Component and Industry," the liquidity and asset liability management solutions market size is projected to grow from US$ 1,787.59 million in 2022 to US$ 3,009.24 million by 2028; it is estimated to grow at a CAGR of 9.1% from 2022 to 2028.

Rising Number of Regulations and Non-Performing Assets Compliance has become one of the prominent challenges in the banking industry since the 2008 financial crisis as a direct result of the sharp increase in regulatory fees related to income and credit losses. From Basel's risk-weighted capital requirements to the Dodd-Frank Act and from the Financial Account Standards Board's Current Expected Credit Loss (CECL) to the Allowance for Loan and Lease Losses (ALLL), there are a growing number of regulations that banks and credit unions must comply with reconciliation, which can consume significant resources, often depends on the ability to interact with data from disparate sources. Hence, traditional ways to comply with these regulations often lead to unexpected errors. Therefore, banking and financial institutions are comprehensively adopting digital platforms that collect and mine data, perform in-depth data analysis, and provide insightful reporting for identifying and minimizing compliance risks.

The increasing number of non-performing assets (NPAs) is another factor hampering the operations of banks. A slowdown in economies in recent years has led to an increase in bad loans or NPAs. A borrower cannot repay these loans, which puts bank liquidity at risk. For instance, according to a report by Kotak Bank, net NPAs in India represent 2.36% of the total credit of the banking system. Such stressed assets make up 10.9% of the banking system's total loans. According to an IMF report, 36.9% of India's total debt is at risk. Hence, banks and private Investment firms are switching to digital platforms to restructure their loan processing models with modern technologies, such as AI and ML, to conduct a thorough background check, which helps them minimize the risks posed by NPAs. The adoption of digital solutions by financial institutions is likely to propel the liquidity and asset liability management solutions market size during the forecast period.

In North America, the US is one of the major countries for liquidity and asset liability management solutions market vendors and service providers. The country hosts the world's second-largest banking, financial service, and insurance (BFSI) sector. Similarly, Canada ranks seventh on the Global Financial Centres Index (GFCI). The robust BFSI sector creates a favorable ecosystem for liquidity and asset liability management solutions market players to launch their solutions and services. Additionally, with a continuous transformation in the North American banking sector and innovation in technologies, banks are preferably adopting advanced analytics methodologies instead of traditional practices. Based on an article by International Banker, banks in the US hit record-high digital adoption levels in 2021. The report states that only 11% of the US Banks and 4% of the credit unions will be left for the digital transformation by the end of 2022, while 5% of financial institutions claim the completion of their digital transformation strategy.

Further, financial intermediaries in North America have wide access to dollar deposits and wholesale financial markets, which also play a major role in liquidity flow. Among all financial intermediaries, major banks in the US stand out as natural intermediaries for world dollar funding due to their access to the largest dollar deposit base, huge US dollar reserves, extensive global operations, and active currency exchange and derivatives. Hence, the growing uncertainty in the banking industry, coupled with a strong banking sector in the US, is anticipated to propel global liquidity and asset liability management solutions market growth in North America.

The liquidity and asset liability management solutions market report provides detailed liquidity and asset liability management solutions market insights to help key players strategize market growth in the coming years. It also forecasts the upcoming trends and developments for liquidity and asset liability management solutions market growth.

Key Findings of Study:

Based on the liquidity and asset liability management solutions market analysis, liquidity and asset liability management solutions market is segmented into component and industry. Based on component, the liquidity and asset liability management solutions market is segmented into solutions and services. In 2021, the solution segment held the largest share in the global liquidity and asset liability management solutions market share. Based on industry, the liquidity and asset liability management solutions market is segmented into banks, brokers, specialty finance, wealth advisors, and others. Based on geography, the liquidity and asset liability management solutions market is segmented into North America (the US, Canada, and Mexico), Europe (Germany, France, Italy, the UK, Russia, and the Rest of Europe), Asia Pacific (Australia, China, Japan, South Korea, India, and the Rest of APAC), the Middle East & Africa (South Africa, Saudi Arabia, the UAE, and the Rest of MEA), and South & Central America (Brazil, Argentina, and the Rest of South & Central America).

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