IBM buys Armanta to better address regulatory compliance

IBM has purchased Armanta, a provider of aggregation and analytics software to financial services firms. 

Armanta’s technology allows financial institutions to aggregate data across multiple systems in ‘near real-time’ speed. This helps them enhance their management decision-making and better address regulatory compliance and other market drivers.

Over the past two years, Armanta and IBM have worked together to deliver financial risk solutions to clients globally. However, with financial services companies seeking to accelerate their ability to meet increasing regulatory requirements and other business demands, such as CECL, FRTB, traded credit risk, ALM and liquidity, portfolio management and more, IBM decided to buy the business.

Armanta will enable IBM to more effectively manage regulatory mandates by using a common aggregation and reporting solution across multiple risk systems, regardless of whether they are developed in-house or are supplied by a vendor.

Clients can also use the new technogoly to build their enterprise reporting solutions on top of existing analytics. Their aggregation technology will also complement current IBM solutions, providing clients with the most effective tools for financial risk, and will provide the ability to instantly visualise complex analyses and different “what-if” scenarios in a secure, sandbox environment.

With this acquisition, IBM said it will help clients further integrate their risk management practices with other front or back office functions, while also establishing a common set of data, analytics and reports for business-wide consistency.

Post-acquisition, IBM has plans of integrating the Armanta business as part of the Watson Financial Services portfolio, further strengthening IBM’s financial risk analytics services.

Earlier this year, Rabobank said it is working with IBM to help comply with new financial regulations in the EU. The Dutch multi-national bank and financial services company said is working with IBM to use cryptographic pseudonyms on its client’s personal data.

Copyright © 2018 RegTech Analyst

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