Infosys Finacle launches AI-powered risk management solution for banks

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Finacle, a subsidiary of and part of Infosys (NSE, BSE, NYSE: INFY), has launched the Finacle Asset Liability Management Solution, designed to help banks optimize liquidity risk management and enhance interest rate risk oversight. This advanced platform provides an enterprise-wide view of financial exposure, empowering financial institutions to strengthen balance sheet planning and make more strategic funding decisions in an increasingly volatile economic landscape.

With banking regulations tightening and market fluctuations affecting liquidity conditions, institutions require robust risk management solutions that deliver real-time insights, AI-driven analytics, and dynamic stress testing. The Finacle Asset Liability Management Solution enables banks to identify liquidity gaps, measure net interest margin impacts, and proactively mitigate risks associated with funding concentration and asset-liability mismatches.

How Does the Finacle Asset Liability Management Solution Improve Risk Oversight?

Effective liquidity risk management is critical for banks, particularly in an era of rising interest rates and global financial uncertainty. The Finacle Asset Liability Management Solution integrates real-time risk monitoring, offering financial institutions a holistic view of liquidity positions across multiple currencies, geographies, and balance sheet components.

With enhanced data modeling and AI-driven predictive analytics, banks can simulate market conditions and adjust their funding strategies accordingly. The solution supports scenario-based stress testing, enabling institutions to anticipate financial shocks and adopt more resilient liquidity frameworks.

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According to Sajit Vijayakumar, Chief Business Officer and Global Head of Infosys Finacle, the new solution is designed to help banks navigate economic uncertainty with greater precision. He noted that the platform provides intelligent risk assessment tools that enable institutions to streamline regulatory compliance, refine financial modeling, and improve decision-making in asset and liability management.

What Sets Infosys Finacle’s Risk Management Solution Apart?

The Finacle Asset Liability Management Solution is built on a host-agnostic, cloud-native architecture, making it adaptable to various core banking and treasury management systems. This ensures seamless integration with existing financial infrastructures, reducing implementation challenges while enhancing operational efficiency.

Advanced AI and Data Analytics for Precision Risk Management

One of the most significant advantages of this solution is its AI-infused analytics engine, which delivers real-time risk insights and enables banks to model liquidity scenarios with greater accuracy. By leveraging predictive analytics, financial institutions can optimize cash flow forecasts and adjust their liquidity buffers based on anticipated market movements.

Scenario Modeling and Stress Testing for Market Resilience

The platform’s built-in stress testing framework allows banks to simulate various financial stress scenarios, including interest rate volatility, economic downturns, and funding shocks. This helps institutions develop proactive risk mitigation strategies, ensuring stronger capital adequacy and funding resilience.

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Regulatory Compliance and Basel Norms Reporting

Given the increasing regulatory focus on liquidity risk management, the solution includes a comprehensive reporting engine with pre-configured Basel norms reports. This enables banks to automate compliance reporting, reducing the burden of manual regulatory filings while improving audit readiness.

How Will This Solution Impact the Banking Sector?

The adoption of AI-driven risk management solutions is expected to reshape asset and liability management in banking, particularly as institutions face heightened financial market volatility.

According to Mohammad Muzaffar Wani, Deputy General Manager – IT and BPR at , implementing Infosys Finacle’s risk oversight platform has significantly enhanced the bank’s liquidity and interest rate risk management capabilities. He emphasized that the advanced risk modeling features provide the institution with greater adaptability to changing financial conditions.

Industry analysts predict that banks adopting AI-driven liquidity solutions will gain a competitive edge in financial planning, as they can anticipate risks, optimize asset allocation, and implement faster corrective actions. The increasing demand for real-time financial insights highlights the importance of integrating AI-powered risk analytics into core banking operations.

Why Is AI-Driven Asset Liability Management Essential for Banks?

As global banking regulations evolve, financial institutions must modernize their risk assessment capabilities to maintain regulatory compliance and financial stability. AI-driven asset liability management solutions provide banks with:

  • A 360-degree view of liquidity risks to improve financial decision-making
  • Advanced AI analytics for predictive funding strategy optimization
  • Scenario-based stress testing to mitigate interest rate volatility
  • Automated regulatory reporting to align with Basel norms
  • Seamless integration with core banking and treasury management systems
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With rising economic uncertainties, banks must shift towards AI-powered liquidity risk management solutions to stay ahead of market disruptions and enhance financial stability.

The Future of Banking Risk Management with Infosys Finacle

The launch of Finacle Asset Liability Management Solution underscores Infosys Finacle’s commitment to advancing and delivering intelligent risk assessment tools. By offering AI-driven risk insights, advanced scenario modeling, and real-time liquidity tracking, the platform empowers financial institutions to navigate economic uncertainty with greater confidence.

As banks continue to prioritize financial resilience, adopting next-generation risk management solutions will be crucial in strengthening balance sheet oversight and ensuring sustainable financial growth.


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