#United Kingdom #Edinburgh #Crown Agents Bank #interest rate swaps #ALMIS

Crown Agents Bank Enhances Risk Management with ALMIS

Crown Agents Bank, a UK-regulated financial institution known for its cross-border payment solutions across the Global South, has taken a significant step to enhance its risk management framework. This follows a strategic partnership with ALMIS International Ltd., aimed at strengthening interest rate risk management through innovative hedging strategies.

A Strategic Move to Manage Interest Rate Risks

On November 12, 2026, the bank announced the implementation of a multi-currency interest rate swap hedging program. This new initiative has materially decreased the bank's sensitivity to interest rate fluctuations, providing a more stable financial framework in an often volatile market.

By leveraging Cobalt, the ALMIS Treasury Management System (TMS), along with ALMIS Hedge Accounting, Crown Agents Bank has successfully introduced interest rate swaps for the first time. This transition was impressively executed, moving from the selection of a vendor to live hedging within merely four months.

Choosing the Right Partner

Crown Agents Bank's decision to partner with ALMIS came after a thorough and competitive selection process. The collaboration has allowed the bank to broaden its hedging toolkit, enhancing risk management capabilities beyond traditional bond hedging to include interest rate swaps. This expansion signifies a vital upgrade in how the bank manages its financial products.

Benefits of Modular Integration

One of the primary motivations behind incorporating ALMIS's platform was the need for a modular solution that would seamlessly integrate with existing systems. The Crown Agents Bank's core banking system has proven reliable for both payments and foreign exchange services. Unlike conventional updates that require wholesale replacements of existing systems, the modular nature of ALMIS’s offerings allowed for a smoother incorporation of interest rate swap and hedge accounting capabilities without disruption.

Aasif Sarigat, the Banking Director at Crown Agents Bank, highlighted that this transition was crucial for their risk management strategy. He stated, “Introducing interest rate swaps for the first time was an important step in strengthening how we manage risk across our balance sheet.” This encapsulates the bank's commitment to enhancing its financial risk management.

Fast Implementation and Efficiency

Crown Agents Bank's rapid implementation of the hedging program exemplified agility in the current financial landscape. The capability to hedge structural interest rate exposure by the end of 2025 marked a significant achievement for the institution. Jake Rose, the Chief Commercial Officer at ALMIS International, emphasized the importance of this development: “Introducing interest rate swaps for the first time is a significant step for any bank.” He praised the team’s focused approach, which made such a swift transition possible.

Future Prospects and Commitment to Excellence

The partnership between Crown Agents Bank and ALMIS not only showcases the effectiveness of integrating technology for risk management but also establishes a precedent for how banks can evolve their treasury capabilities progressively. This strategic collaboration illuminates a pathway for other financial institutions aiming to enhance their risk management frameworks without incurring the heavy costs associated with typical system replacements.

In summary, the collaboration represents a forward-thinking approach to balance sheet management in the banking sector. As Crown Agents Bank continues to adapt to the changing financial landscape, its partnership with ALMIS is set to bolster its position as a leader in cross-border payments across the Global South.

About ALMIS International

Founded over three decades ago, ALMIS International specializes in helping banks and building societies manage their balance sheets confidently. Their cloud-based platform integrates Treasury Management, Asset and Liability Management, and Regulatory Reporting, providing a consolidated view that enhances financial decision-making for over 60 financial institutions worldwide.

About Crown Agents Bank

Crown Agents Bank has nearly 200 years of experience in providing cross-border payment solutions. With a commitment to promoting prosperity in underserved markets, the bank operates across more than 120 countries, offering a vast array of currency pairings and tapping into hard-to-reach markets effectively. By leveraging their expansive network of relationships, Crown Agents continues to facilitate the flow of funds, fostering economic growth in the Global South.