Yorkshire Building Society Standardizes on Ambit Asset Liability Management Solution to Better Manage its Balance Sheet

London - 25 January 2011

Yorkshire Building Society (YBS), the second largest building society in the United Kingdom, has standardized its ALM practice across the organization with SunGard’s Ambit Asset Liability Management (ALM) solution, an integrated risk management solution that facilitates complete multi-dimensional analysis of the balance sheet. The solution’s implementation has been expanded across the organization to include its recently acquired company, Chelsea Building Society (CBS). This will help YBS consolidate the commercial and residential businesses of the two firms onto a single balance sheet and gain a better understanding of interest rate risk for the group.

With Ambit ALM, YBS intends to drive efficiencies in its mortgage management process as well as in pricing for new and existing clients. Ambit ALM will help to create a risk measurement and pricing system that is consistent with market-based pricing mechanisms. Ambit ALM will also help YBS model customer behavior, business strategy, interest rate scenarios and a wide range of other economic variables quickly, easily and accurately. Accurate and detailed data and analysis will help managers to better understand the impact of market changes on the balance sheet, and therefore make more informed business decisions for the new consolidated firm.

Mark Smith, head of asset liability management at YBS, said, “Clear understanding and effective management of interest rate risk requires accurate and detailed data and analysis. We have been using SunGard’s Ambit Asset Liability Management solution since 2000 and were eager to deploy the solution across our recently acquired firm, CBS. This will help to measure and manage interest rate risk at the group level and provide the necessary inputs for new business decision making.”

Andreas Hug, managing director of SunGard’s Ambit Risk & Performance Management, commented, “The sub-prime crisis and global credit crunch are forcing firms to increase their emphasis on strategic risk management. Firms like Yorkshire Building Society can rely on SunGard’s Ambit Asset Liability Management solution to help measure and manage risk, forecast balance sheet performance, meet regulatory requirements and make critical business decisions.”

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development