Avaloq launches the Avaloq Data Synthesizer solution for FIs

By Edil Corneille

Zurich-based FinTech company Avaloq has launched the Avaloq Data Synthesizer, a solution that allows financial institutions (FIs) to simulate real client data in the development of software products. The application can be deployed in the Avaloq.one ecosystem’s sandbox, ensuring a controlled and cloud-based setting.

The new solution derives information from real data, but it is free of any client-identifying data. Accessed internally or externally without compliance constraints by institutions and third parties, Synthesized data is said to accelerate innovation, speed up internal proofs of concept, and lead to far greater security and accuracy levels.

Thomas Beck, Chief Technology Officer at Avaloq elucidated, “A synthesized database speeds up the development process, prevents system failures and offers the freedom to involve partners at will – an increasingly necessary capability in an open banking ecosystem. Developing similar solutions in-house is highly complex and very often too expensive for financial institutions. This latest launch, which has been extensively tested and is already in use, is a direct result of a strong demand for a cost-effective, straightforward solution. It truly illustrates the deep innovation inherent in Avaloq and our ability to meet the changing needs of our clients.”

The launch of the solution comes at a time when the digitalization of the financial services sector is accelerating the shift to cloud-based infrastructures such as software as a service (SaaS) and business process as a service (BPaaS). Financial institutions can use synthesized data to enhance their software development and testing, reduce compliance and reputational damage from possible data leaks, and benefit from cost savings.

The Avaloq Data Synthesizer is an Avaloq Core add-on module that can be licensed to the company’s banking and wealth management clients. Avaloq.one’s REST API technology enables seamless integration into the Avaloq Banking Suite and provides comprehensive test functions for users.

A number of Avaloq’s clients have been using the solution prior to its formal launch, while Avaloq itself has been running automated test suites on synthesized images since 2019. One of the company’s Swiss-based clients, Luzerner Kantonalbank (LUKB), has been using synthesized data, through the Avaloq.one sandbox, to grant external partners and an independent developer access to their APIs to develop and test a specific banking application.