Comprehensive Analytics to Transform Balance Sheet Risk Management

Challenge

A second-tier bank with a strong multichannel platform that was focused on the mid- to low-income retail and SME market enjoyed a decade of rapid growth during a buoyant economy. While the bank’s credit and market risk management capabilities successfully kept pace with its expansion, its efforts to manage interest rate risk, liquidity, and profitability resulted in divisionally siloed solutions: a clear vulnerability as it entered a more uncertain period for economic growth and interest rates.

Result

Expert advisers, using an outsourced Cloud-based solution and supported by a small internal team at the bank, leveraged existing reporting and Management Information System (MIS) capabilities to hone in on and capture the key data drivers across the balance sheet. This provided the Asset-Liability Committee with comprehensive data for improved enterprise-level decision-making relating to product and unit level profitability, liquidity management, and balance sheet positioning and hedging. This new more cost-effective and adaptable capability was live within 90 days.

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