SAS an asset liability management technology leader, per Chartis
SAS’ commanding first-ever showing in Chartis’s latest ALM technology analysis is complemented by five 2023 Risk Technology Awards
Chartis Research has recognized SAS as an asset liability management technology (ALM) category leader. SAS earned this prestigious designation in all four RiskTech Quadrants of Chartis’s recently published report ALM Technology Systems, 2023: Market Update and Vendor Landscape:
- ALM solutions. The Vendor Analysis notes, “SAS’ best-in-class capability scores in interest rate and behavioral modeling reflect its expertise in advanced analytics. […] SAS’ strong ratings for capabilities and breadth of analytics, stress testing/reverse stress testing, simulation engine(s) capabilities, liquidity risk analytics and balance sheet analytics further highlight its strength in ALM analytics.”
- Funds transfer pricing (FTP) solutions. Among SAS’ key FTP strengths, according to the Vendor Analysis, “SAS provides models that can reflect a range of cashflow profiles, term structures and optionality [for profitability analysis]. It supports cashflow projections across different economic and market scenarios, incorporating both contractual and behavioral cashflows.”
- Liquidity risk management (LRM) solutions. “One key aspect of SAS’ category leader position is its strength in data management, governance and integration – its high rating for integration in particular reflects its strong data integration capabilities, which are crucial for effective LRM,” highlights the Vendor Analysis. “Also rating highly were its consistent cashflow generation frameworks, which are combined with a scalable cashflow engine” for scenario-based actions and optimization.
- Capital and balance sheet optimization solutions. The Vendor Analysis heralds how SAS’ “flexibility and scalability in handling diverse types of data enables firms to conduct dynamic and frequent optimizations using a variety of methods. SAS also provides a financial planning and forecasting engine, enabling users to plan allocations across different business hierarchies and market conditions.” Richness in simulation and mathematical optimization approaches and techniques also contributed to SAS’ high rating.
A market-changing vision come to fruition
This marks SAS’ debut in Chartis’s ALM technology quadrant report, a direct result of the analytics and AI giant’s 2022 acquisition of Kamakura Corporation, a financial risk management firm specializing in ALM and integrated balance sheet management for the banking and insurance sectors.
“SAS’ strong showing in Chartis’s latest analysis of ALM technology vendors reflects how its vision is coming to fruition,” said Sidhartha Dash, Research Director at Chartis. “Following its acquisition of Kamakura, and coinciding with financial firms’ renewed focus on this long-overlooked facet of risk management, it’s clear that SAS’ customers are already realizing gains in the fusion of SAS’ analytics capabilities and infrastructure and Kamakura’s quantitative expertise.”
Notably, the acquisition also helped propel SAS to the No. 3 spot in the 2023 Chartis RiskTech100, the predominant annual ranking of the world’s top risk technology vendors.
SAS reigns supreme at the Risk Technology Awards
ALM is but one area of risk management where SAS has earned recent acclaim. SAS won five of the 22 award categories recognized at the 2023 Risk Technology Awards, Risk.net’s prestigious annual awards series recognizing the best in enterprise, operational and credit risk technology. SAS’ category wins included:
- Consumer credit modeling software of the year.
- Credit stress-testing product of the year.
- IFRS 9 – enterprise solution of the year.
- IFRS 9 – expected credit loss modeling solution of the year.
- Regulatory capital calculation product of the year.
With five category awards, SAS was declared the biggest winner among 15 technology vendors and consulting firms honored in this year’s awards.
Reassessing ALM readiness amid long-term volatility
The spate of recent bank failures underscores the dangers of inadequate ALM and has forced financial firms to reassess the effectiveness of their risk practices and technologies. A recent ALM research study revealed that eight in 10 firms are considering significant improvements to their ALM functions and capabilities.
“ALM readiness is a continuum, optimally culminating in the enviable goal of integrated balance sheet management,” said Troy Haines, Senior Vice President and Head of Risk Research and Quantitative Solutions at SAS. “SAS’ integrated risk solutions portfolio spans expected credit loss, stress testing, regulatory capital, CECL, IFRS 9, risk modeling, model risk management, IFRS 17, solvency and actuarial modeling – the full continuum, end-to-end, on cloud-native SAS® Viya®.
“Wherever firms find themselves on the readiness continuum, SAS can help them transform ALM from a check-the-boxes compliance issue to a strategy driver that helps senior leaders and boards of directors steer the organization.”
About Chartis Research
Chartis Research is the leading provider of research and analysis on the global market for risk technology. It is part of Infopro Digital, which owns market-leading brands such as Risk and WatersTechnology. Chartis' goal is to support enterprises as they drive business performance through improved risk management, corporate governance and compliance, and to help clients make informed technology and business decisions by providing in-depth analysis and actionable advice on virtually all aspects of risk technology.
SAS is a global leader in AI and analytics software, including industry-specific solutions. SAS helps organizations transform data into trusted decisions faster by providing knowledge in the moments that matter. SAS gives you THE POWER TO KNOW®.
"SAS’ acquisition of Kamakura has raised the vendor’s overall market presence and potential," according to Chartis.
"SAS’ customers can also benefit from integration with cloud-native solutions within the broader ALM ecosystem, including solutions for expected credit loss and regulatory capital," notes Chartis.
How are financial firms retooling their ALM capabilities? Click to explore SAS' recent ALM study.