The largest 500 financial institutions are set to spend $US 936 million in 2001 globally on asset liability management (ALM) systems, with most growth in developing countries, says Meridien Research.
The report, 'Asset Liability Management Systems: Market Apathy Reigns', says that core analysis functions have not changed much in the past couple of years. But ALM systems are often a part of enterprise risk management applications or customer relationship management systems.
Peter Keppler, analyst, Meridien Research, notes that ALM functionality is being thrown in with enterprise software deals as a sweetener. He says: "This is causing price pressure and decreases the overall size of the market."
He says, however, that the forecasting and simulation capabilities of sophisticated ALM packages provide an ideal platform for performance-planning and customer-level analysis.