ALM Modeling

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Overview

Transform your credit union’s interest rate risk management.
The Asset/Liability Management (ALM) Modeling module within ALM360 simulates and analyzes how changes in interest rates, market conditions, and policy limits affect a credit union’s balance sheet. Built for today’s regulatory and strategic demands, ALM Modeling delivers actionable insights for Asset/Liability Committees (ALCO), boards, and finance teams.

What is the ALM Modeling module in ALM360?

ALM Modeling is the backbone of ALM360’s integrated balance sheet management platform. It provides instrument-level granularity for institutions that require detailed and insightful analysis. It enables credit unions to:

Simulate Net Economic Value (NEV), Net Interest Income (NII), and Net Income across various interest rate paths and time horizons
Assess interest rate risk, policy limits, and sensitivity with granular detail
Visualize compliance and risk scenarios in executive dashboards designed for ALCO and board reporting

What are the key features and benefits of ALM Modeling?

Comprehensive scenario analysis
Model multiple interest rate scenarios and stress tests to understand potential impacts on earnings and economic value. Apply custom assumptions for more accurate forecasting.

Policy limit monitoring
Track and visualize policy compliance in real time. Set alerts for breaches and monitor sensitivity to changing market conditions.

Executive dashboards
Interactive dashboards for ALCO and board meetings. Consistent, transparent numbers for every stakeholder.

Instrument-level granularity
Modeling is performed at the instrument level, allowing for targeted analysis and the ability to Identify risk areas and opportunities for optimization.

Seamless integration
Unified data model powers all ALM360 modules, ensuring decision consistency and eliminating manual reconciliation.

Suitable for credit unions of all sizes
Full instrument-level ALM Modeling supports complex balance sheets and meets all regulatory requirements.

ALM Report Previews

Why choose the ALM Modeling module?

Unified Platform
The ALM Modeling module is the backbone that unlocks the full potential of ALM360, including enhanced modeling, trading, reporting, benchmarking, and optimization capabilities.

Strategy Enablement
ALM360 turns ALM Modeling into a strategic tool by integrating results across liquidity, profitability, and CECL in real time. It enables credit unions to run stress scenarios, link risk analysis to trade execution, and forecast multiple financial simulations, all within one platform. This makes ALM outputs actionable for growth strategies, funding decisions, and board-level governance rather than just regulatory compliance.

FAQs

ALM modeling is a process credit unions use to measure and manage interest rate risk across their balance sheet. It involves simulating how changes in market rates and member behavior affect key metrics like Net Economic Value (NEV), Net Interest Income (NII), and overall profitability. By running multiple scenarios and stress tests, credit unions can forecast earnings, monitor policy limits, and ensure regulatory compliance. ALM Modeling supports strategic decisions on pricing, funding, and investment by showing the long-term impact of different strategies under varying economic conditions. Ultimately, it helps credit unions balance risk and return while maintaining financial stability and member value.

It provides full, instrument-level interest rate risk forecasting, all embedded within the broader ALM360 platform, unlocking powerful tools for credit unions to inform strategy and better manage their balance sheets.

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