{"id":12748,"date":"2025-03-12T09:33:18","date_gmt":"2025-03-12T09:33:18","guid":{"rendered":"https:\/\/outsourcing-today.ro\/?p=12748"},"modified":"2025-03-12T09:33:20","modified_gmt":"2025-03-12T09:33:20","slug":"sas-75-of-banks-to-invest-in-risk-technology-transformation-amid-unyielding-headwinds","status":"publish","type":"post","link":"https:\/\/outsourcing-today.ro\/?p=12748","title":{"rendered":"SAS: 75% of banks to invest in risk technology transformation amid unyielding headwinds"},"content":{"rendered":"\n<h5><em><span class=\"has-inline-color has-vivid-cyan-blue-color\">Global survey of 300 risk executives by FT Longitude and SAS shows a dramatic surge in risk management IT infrastructure and solutions investment as banks face formidable macroeconomic strife<\/span><\/em><\/h5>\n\n\n\n<p>Having navigated the coronavirus pandemic\u2019s disruption, the banking industry faces a new era of volatility and uncertainty. Soaring interest rate and liquidity risks have toppled eight banks since 2023. Credit risk looms large amidst geopolitical tensions and the squeeze of inflation. Regulatory change and complexity abound. To effectively confront the mounting challenges, a global&nbsp;<a href=\"https:\/\/www.sas.com\/en\/whitepapers\/transforming-risk-management-114285.html\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>risk management survey<\/strong><\/a>&nbsp;from FT Longitude and data and AI leader SAS reveals that:<\/p>\n\n\n\n<ul><li><span class=\"has-inline-color has-vivid-cyan-blue-color\">75% of banks intend to increase investment in risk technology infrastructure (up from 51% in 2021).<\/span><\/li><li><span class=\"has-inline-color has-vivid-cyan-blue-color\">64% plan to augment spending on third-party software (vs. 43% in 2021).<\/span><\/li><\/ul>\n\n\n\n<p>The new benchmarking report,&nbsp;<strong><em>Transforming Risk Management<\/em><\/strong>, is based on insights shared by 300 senior banking risk management leaders in 25 countries, surveyed in October 2024. A follow up to a like joint study published in 2021, this latest report shows a striking rise in banking leaders\u2019 prioritization of&nbsp;<a href=\"https:\/\/www.sas.com\/en_us\/solutions\/risk-management.html\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>risk management<\/strong><\/a><strong>&nbsp;innovation<\/strong>, underscoring the critical role of technology in helping banks overcome adversity and build resilience.<\/p>\n\n\n\n<p>In-depth interviews with risk management executives at large multinational banks add rich context to the survey data. The report features perspectives from risk officers at Capital One, Commerzbank, General Bank of Canada and Santander Portugal.<\/p>\n\n\n\n<p>\u201cBanks can no longer take decisions relating to liquidity, capital or credit risk in isolation,\u201d said Carlos Diaz Alvarez, Chief Risk Officer of Santander Portugal. \u201cWe can extract key information from separate systems to make holistic decisions, but we need more granularity and integration.\u201d<\/p>\n\n\n\n<p>Register for the webinar&nbsp;<a href=\"https:\/\/www.bankinfosecurity.com\/webinars\/live-webinar-adaptive-risk-management-in-banking-navigating-complexity-w-6098\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><em>Adaptive Risk Management in Banking: Navigating Complexity with Agility<\/em><\/strong><\/a>&nbsp;for a forward-looking discussion led by FT Longitude and SAS on the future of banking risk management. Based on the study findings, the webinar will stream live Wednesday, March 5 at 1 p.m. ET, and later on demand.<\/p>\n\n\n\n<p>\u201cOur research finds that banks took some vital steps forward over the past three years to build resilience,\u201d said Thomas Sturge, Group Editor at FT Longitude. \u201cBut they can\u2019t get caught comfortable. Ongoing turbulence means they must constantly modernize, improve and transform how they detect, manage and mitigate risk. Those that do will be rewarded not just with improved resilience, but also greater customer satisfaction and, ultimately, revenue.\u201d<\/p>\n\n\n\n<h5><strong>Five key takeaways<\/strong><\/h5>\n\n\n\n<p>SAS has also published a data dashboard that allows users to explore the study\u2019s findings by region, institution type and asset size. Available at&nbsp;<strong><a href=\"https:\/\/www.sas.com\/risksurvey\" target=\"_blank\" rel=\"noreferrer noopener\">SAS.com\/risksurvey<\/a><\/strong>, the tool adds depth to five overarching study findings:<\/p>\n\n\n\n<ol><li><strong>Investment in risk technology capabilities is growing significantly.<\/strong>&nbsp;In addition to the burgeoning investment in technology infrastructure and third-party software noted previously, 65% of banks plan to engage third-party consultancy and advisory services, up 15% since 2021.<\/li><li><a href=\"https:\/\/www.sas.com\/en_us\/insights\/articles\/risk-fraud\/what-is-a-risk-model.html\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Risk modeling<\/strong><\/a><strong>&nbsp;is a foremost focus for banks as they contend with regulatory change and seek to automate risk processes.<\/strong>&nbsp;Two-thirds (67%) of banks plan to advance their risk modeling capabilities over the next two years (vs. 54% in 2021). Further, the percentage of execs who regard risk modeling as a competitive advantage has surged to 63%, from 47% in 2021. Among those in EMEA, and those with $20 billion to $50 billion in assets under management (AUM), 72% see risk modeling as a competitive advantage.<\/li><li><strong>The use of&nbsp;<\/strong><a href=\"https:\/\/www.sas.com\/en_us\/insights\/analytics\/what-is-artificial-intelligence.html\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>AI<\/strong><\/a><strong>, including newer&nbsp;<\/strong><a href=\"https:\/\/www.sas.com\/en_us\/insights\/analytics\/generative-ai.html\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>generative AI<\/strong><\/a><strong>&nbsp;tech, remains mixed, despite the great promise and potential.<\/strong>&nbsp;Only a minority of banks report widespread use of AI for functions like risk management (40%), risk modeling (30%) and fraud detection (36%). Fewer still report using GenAI for these functions: risk management (17%), risk modeling (16%) and fraud detection (24%). American banks lead their EMEA and APAC counterparts in the use of AI and GenAI for each of these functions, while APAC banks use AI and GenAI the least for these functions. A lack of skilled talent is the top barrier to fully adopting AI, cited by 50% of respondents across regions.<\/li><li><strong>As banks face a veritable data explosion from multiple sources, effective data management and data governance frameworks have never been more essential.<\/strong>&nbsp;The executives surveyed see improved risk management (64%), improved customer experience (55%) and improved fraud detection (51%) as top benefits for consolidating customer data. Yet only 14% intend to significantly consolidate customer data, and fewer than half (44%) say the same for non-customer data. Of note, data consolidation plans vary considerably by AUM and region.<\/li><li><strong>Banks of all sizes, and in all regions, continue to grapple with their&nbsp;<\/strong><a href=\"https:\/\/www.sas.com\/en_us\/solutions\/risk-management\/solution\/asset-liability-management.html\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>asset liability management<\/strong><\/a><strong>&nbsp;(ALM) systems and capabilities \u2013 and most plan to enhance them.<\/strong>&nbsp;Only about 1 in 5 risk execs surveyed report they are \u201cvery satisfied\u201d with their ability to manage liquidity risk (22%) or with their ALM systems (20%). Roughly 8 in 10 report they are either implementing next-generation ALM solutions (38%) or making comprehensive enhancements to their ALM functionalities (41%). Overwhelmingly, integrated balance sheet management (IBSM) is a high aspirational goal of surveyed executives; 77% plan to invest in IBSM that enables them to better assess the impact of interest rate risk and credit risk. American banks and large banks lead the way in ALM integration.<br>&nbsp;<\/li><\/ol>\n\n\n\n<p><span class=\"has-inline-color has-vivid-cyan-blue-color\">\u201cWith risks impacting financial institutions more interconnected than ever before, firms need a singular, AI-powered platform that allows them to evaluate risks across the balance sheet and perform more holistic stress testing,\u201d said Stu Bradley, Senior Vice President of Risk, Fraud and Compliance Solutions at SAS. \u201cThose that replace outdated systems and infrastructure with a more integrated, enterprise-wide approach will see benefits across functions and enable better, more strategic decision-making.\u201d<\/span><\/p>\n\n\n\n<p>photo resource:<a href=\"https:\/\/www.sas.com\/en_za\/news\/press-releases\/2025\/march\/ft-longitude-banking-risk-management-survey.html\">75% of banks to invest in risk technology transformation amid unyielding headwinds | SAS<\/a><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Global survey of 300 risk executives by FT Longitude and SAS shows a dramatic surge in risk management IT infrastructure and solutions investment as banks face formidable macroeconomic strife Having navigated the coronavirus pandemic\u2019s disruption, the banking industry faces a [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":12750,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[7,19,18,12,6,3,317],"tags":[],"_links":{"self":[{"href":"https:\/\/outsourcing-today.ro\/index.php?rest_route=\/wp\/v2\/posts\/12748"}],"collection":[{"href":"https:\/\/outsourcing-today.ro\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/outsourcing-today.ro\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/outsourcing-today.ro\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/outsourcing-today.ro\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12748"}],"version-history":[{"count":1,"href":"https:\/\/outsourcing-today.ro\/index.php?rest_route=\/wp\/v2\/posts\/12748\/revisions"}],"predecessor-version":[{"id":12752,"href":"https:\/\/outsourcing-today.ro\/index.php?rest_route=\/wp\/v2\/posts\/12748\/revisions\/12752"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/outsourcing-today.ro\/index.php?rest_route=\/wp\/v2\/media\/12750"}],"wp:attachment":[{"href":"https:\/\/outsourcing-today.ro\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12748"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/outsourcing-today.ro\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12748"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/outsourcing-today.ro\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12748"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}