Moody’s Corporation (NYSE:MCO) announced today that it has acquired ZM Financial Systems (ZMFS), a leading provider of risk and financial management software for the U.S. banking sector. The transaction advances Moody’s position as a leader in integrated risk assessment by broadening Moody’s Analytics’ suite of enterprise risk solutions, which help financial institutions make informed decisions.
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ZMFS’ product suite delivers key systems and services that banks and other financial institutions use to model and manage risk, and to make fundamental business decisions related to asset and liability management (ALM), portfolio management, liquidity, solvency, and budgeting. Using a comprehensive cash flow engine, these solutions allow banking professionals to forecast and stress test their balance sheets by analyzing data patterns, modeling positions, trading securities, and buying and selling loans.
“ZM Financial’s advanced analytical tools are a trusted source for risk management software used by U.S. banks, credit unions, and broker-dealers,” said Stephen Tulenko, President of Moody’s Analytics. “The addition of ZM Financial’s leading ALM capabilities furthers Moody’s global leadership in risk assessment and will help us support financial institutions of all sizes.”
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The addition of ZMFS furthers the evolution of the Moody’s Analytics offerings for the U.S. banking sector. ZMFS’ products complement Moody’s Analytics’ credit origination and credit scoring, accounting, portfolio management, and forecasting tools, including CreditLens, ImpairmentStudio, and Capital Risk Analyzer, to form a robust suite of U.S. banking solutions.
“Joining Moody’s and integrating their well-known economic and behavioral models will greatly elevate our offerings to financial institutions,” said Butch Miner, Co-Founder of ZMFS. “Together, we will continue to evolve our analytical solutions and optimize processes to help customers meet their continued growth and risk management objectives,” added Dai Zhao, Co-Founder of ZMFS.
Moody’s Analytics will integrate ZMFS into its Enterprise Risk Solutions (ERS) line of business.
The investment was funded with cash on hand and is not expected to have a material effect on Moody’s 2020 financial results.
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