Strata buys c. myers to expand bank planning and ALM services

Strata Decision Technology said it has acquired c. myers, combining its Axiom enterprise performance management platform with an advisory firm that has worked with more than 600 financial institutions over more than three decades. Strata said the deal is intended to broaden support for bank and credit union executives facing interest-rate volatility, margin pressure and heavier demands on leadership teams.

Adam Johnson, chief executive of c. myers, and the c. myers team will join Strata as part of the acquisition, according to the company’s announcement. Strata did not provide further detail on the integration of the businesses in the announcement.

Strata provides enterprise performance management technology to financial institutions. Its Axiom platform is used for financial planning, reporting and profitability analysis, according to the company. c. myers is an advisory firm focused on strategic planning, leadership development, succession planning and asset-liability management, known in banking as ALM.

Advisory services added to planning software

Strata said the acquisition creates a larger partner for chief executives, boards and finance chiefs at financial institutions. For CEOs and directors, the company said the combined business will support strategic planning, executive leadership development, CEO readiness and succession planning.

For CFOs, Strata said c. myers’ ALM work will be paired with Axiom’s financial planning, reporting and profitability tools. Asset-liability management is the discipline banks use to assess how changes in interest rates, funding costs and balance-sheet composition affect earnings, capital and liquidity. Strata said linking ALM with financial planning and reporting can give institutions a more connected basis for scenario analysis and decision-making.

John Martino, chief executive of Strata, said the acquisition is a milestone for the company. He said financial institutions need both current technology and experienced advisers to address current pressures, and said bringing Johnson and the c. myers team into Strata combines strategic advisory and ALM knowledge with the Axiom platform.

Focus on rate risk and planning processes

Strata said financial institutions are dealing with persistent operating challenges, including swings in interest rates, pressure on margins, shifting competition and increased demands on management teams. The company said decision-making is often spread across separate systems and planning processes, which can make it harder for institutions to respond quickly.

According to Strata, c. myers has helped financial institutions use ALM as a strategic discipline rather than only as a regulatory requirement. The firm’s work includes dynamic scenario modeling and leadership services, the announcement said. Strata said combining those capabilities with Axiom can help align treasury and finance functions and improve planning across an organization.

Johnson said joining Strata gives c. myers an opportunity to extend its work with financial institutions and add capabilities for clients. He said Strata’s financial planning and analysis and profitability capabilities are areas c. myers customers have been asking about.

Strata said the acquisition reflects its long-term commitment to financial institutions and continued investment in a platform for the sector. The company said Axiom already serves many leading financial institutions in the US, and that adding c. myers expands Strata’s advisory and ALM capabilities.

This story draws on original reporting from Finextra Research.