Liquidity and Asset Liability Management Solutions Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Component (Solutions and Services) and Industry (Banks, Broker, Specialty Finance, Wealth Advisors, and Others)
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.
Liquidity and asset liability management solutions provide a solution to meet the emerging requirement of an investor. The software analyzes, controls, monitors, and supports an efficient advisory network, which permits strong customer engagement, followed by compliance with various global regulations. The advisory network utilizes a spectrum of financial disciplines, including investment and financial advice, estate or legal planning, tax services, accounting, and retirement planning, to manage a consumer's wealth. Continuous advancements in technology and the rise in demand for automation are positively impacting the global market. North America is an early adopter of technologies and has a sound IT infrastructure. Several large global companies are situated in the US. The US, Canada, and Mexico are the major countries in North America. The US and Canada are developed countries in terms of modern technologies, standard of living, and infrastructure. The US dominates the liquidity and asset liability management solutions market in North America and is expected to grow at the highest CAGR during the forecast period.
Middle Eastern countries such as Oman and Israel are expected to witness a rise in investments in the manufacturing sector in the coming years. The Oman government is supporting its manufacturing sector by introducing several incentives and promoting FDIs, thereby providing a conducive environment for bolstering the adoption of liquidity and asset liability management solutions in the region. In South & Central America, an increase in IT development across the region, especially in Brazil and Argentina, is supporting the growth of the liquidity and asset liability management solutions market.
North America leads in the global liquidity and asset liability management solutions market share, followed by Europe. The IT industry adoption trends in North America, specifically in the US, have been the most influential ones globally. This is due to the region's ability to be at the forefront during the lengthy period of economic recovery. Similarly, Europe is a technologically advanced region, which is one of the primary reasons for its rapid IT transformation. The region comprises several developed IT clouds and exhibits varied business requirements. Governments are offering a robust IT infrastructure budget to improve IT services in this region. These factors are contributing to the liquidity and asset liability management solutions market growth in this region.
APAC is estimated to register the fastest CAGR during the forecast period. Developing economies in the region, such as China, India, and Southeast Asian countries, are witnessing considerable growth in their GDPs and per capita income every year. India is one of the primary markets having a growing software industry, thus, providing abundant growth opportunities for the liquidity and asset liability management solutions market players.
Integrating artificial intelligence (AI) technology and analytics in the financial sector permits organizations to profoundly understand the complexities involved in the global markets, which helps them make more precise investments. AI is being integrated extensively across numerous areas, from cloud computing applications to digital assistants, to automate the process. Integrating AI and analytics with liquidity asset liability management solutions allows companies to analyze all details related to their investments, both past and future; offers real-time analytics and intelligence; and helps reduce the operation cost. The continuous advancements in AI also permit wealth managers to determine new sources of investment and customize investor portfolios associated with specific risk profiles. The adoption of modern liquidity asset liability management solutions is driven by their ability to increase operational efficiencies, offer better sales revenues, and improve customer experiences.
The success of information sharing among regulators and banks has introduced a culture of collaboration in the liquidity and asset liability management solutions market. Inconsistencies or irregularities in territorial regulation and privacy legislation are the major obstacles to information sharing. Over the period, information sharing has evolved to be crucial in effectively fighting financial crimes. Furthermore, managing remote compliance teams and thousands of people has been a crucial responsibility of compliance officers during the COVID-19 Pandemic. AI can help organizations deal with various issues arising from digitalization, as it can reduce human intervention, particularly in asset management circumstances. Although AI will never be able to replace humans completely, it can help reduce the need for human approval and accelerate liquidity and asset liability management solutions market growth.
Based on the liquidity and asset liability management solutions market report, the liquidity and asset liability management solutions market is segmented into component and industry. 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).
The overall liquidity and asset liability management solutions market size has been derived using both primary and secondary sources. Exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the liquidity and asset liability management solutions market. The process also obtains an overview and forecast for the liquidity and asset liability management solutions market with respect to all the segments. Also, multiple primary interviews have been conducted with liquidity and asset liability management solutions market players to validate the data and gain more analytical insights. Participants of this process include industry experts such as VPs, business development managers, market intelligence managers, national sales managers, and external consultants—valuation experts, research analysts, and key opinion leaders—specializing in the liquidity and asset liability management solutions market.
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