Danske Bank, Denmark’s largest financial institution, has reinforced its partnership with ActiveViam to enhance its capabilities in advanced analytics for liquidity stress testing. This collaboration is set to deliver cutting-edge solutions, enabling the bank to strengthen its risk management framework in response to the growing complexities of the financial landscape.
By leveraging ActiveViam’s state-of-the-art technology, Danske Bank is developing next-generation liquidity stress testing systems that promise faster, more accurate insights. These advancements will help the bank proactively address liquidity challenges and maintain its position as a leader in robust and reliable risk management.
A Game-Changing Approach to Stress Testing
The ability to create new stress-testing scenarios, apply them to vast datasets, and obtain actionable results within minutes is poised to transform how banks approach risk. “Creating new stress testing scenarios, applying them to large datasets, and obtaining results within minutes will be a game-changer,” noted Andžej Michalcevič, Product Owner at Danske Bank.
This step marks a significant milestone in the bank’s journey toward modernizing its operational capabilities to meet the demands of an increasingly volatile market environment.
A Proven Partnership Since 2010
Danske Bank’s collaboration with ActiveViam dates back to April 2010 when the two organizations first joined forces to address the complexities of xVA calculations. Utilizing ActiveViam’s in-memory analytics platform, Atoti, the initial project replaced outdated Excel-based systems with an advanced architecture capable of processing 68 million data points. This shift enabled real-time and highly precise analysis of the bank’s derivatives portfolio, dramatically improving both speed and accuracy in risk management.
The implementation also integrated Danske Bank’s proprietary pricing library and Adjoint Algorithmic Differentiation (AAD) technology, allowing the bank to compute risk sensitivities with unparalleled efficiency. This transformative approach not only enhanced decision-making but also saved considerable time for the bank’s xVA desk.
Nicki Rasmussen, Managing Director and Head of the XVA Desk at Danske Bank Corporates and Institutions, reflected on the project’s success:
“The future of banking depends on continuous transformation—embracing the latest technology, fostering innovation, streamlining operations, and enhancing customer experiences. By utilizing an advanced solution like Atoti, we not only modernize our risk management architecture but also deliver a higher level of value and service to our clients.”
Expanding the Scope of Advanced Analytics
Building on this success, Danske Bank has expanded its use of Atoti to include a liquidity risk management application powered by the Atoti Python API. This new application encompasses key metrics such as the Liquidity Coverage Ratio (LCR), the Net Stable Funding Ratio (NSFR), and real-time stress testing, offering unparalleled insights for the bank’s risk management teams.
During the testing phase, the liquidity risk management application showcased exceptional performance, allowing Danske Bank to perform complex stress tests efficiently. Michalcevič emphasized its impact:
“We were impressed by the application’s performance during the testing phase. This solution enables us to operate with greater agility and precision, which is critical in today’s financial ecosystem.”
Introducing Atoti Limits and DirectQuery
As part of the expanded partnership, Danske Bank will also implement Atoti Limits, a specialized module designed to manage thousands of risk and trading limits with greater flexibility. This tool offers real-time alerts, detailed breach investigations, and customizable workflows to enhance compliance and operational efficiency.
Additionally, the bank plans to adopt Atoti DirectQuery, a feature that allows users to analyze large datasets directly from external databases without needing to load them into memory. This capability reduces memory usage while enabling sophisticated real-time analytics, further enhancing the bank’s data processing capabilities.
Strengthening a Long-Standing Relationship
Laurent Sultan, Chief Revenue Officer at ActiveViam, expressed his enthusiasm for the deepening collaboration:
“Ensuring the satisfaction of our customers is part of our company’s DNA. Since 2010, we have built a strong relationship with Danske Bank, dedicated to providing innovative, robust, and valuable solutions. We are pleased to now offer them a reliable liquidity management solution that aligns with their needs and helps them achieve their business goals.”
A Future-Ready Partnership
The strengthened partnership between Danske Bank and ActiveViam represents a shared commitment to innovation and excellence in financial services. By harnessing advanced analytics tools like Atoti, Danske Bank is not only addressing current challenges but also positioning itself as a forward-thinking leader in the industry.
This ongoing collaboration underscores the critical role of technology in transforming risk management practices and ensuring long-term stability in the global financial market.
