Why banking stability is now a data problem
Interview with Aaro Mäkelä, CEO of ALM Partners
In the years since the global financial crisis, banks have faced an expanding web of regulation, heightened scrutiny and relentless data demands. Managing risk is no longer an episodic exercise but a continuous operational reality. Founded in Finland in 2011, ALM Partners has built its business at this intersection of regulation, data and decision‑making. Under the leadership of CEO Aaro Mäkelä, the firm has grown from a small specialist team into a Nordic powerhouse helping banks transform regulatory compliance into a source of stability and strategic clarity.
Born out of crisis, ALM Partners traces its origins directly to the structural failures exposed by the financial turmoil of the late 2000s. Aaro Mäkelä, who began his career in banking risk management, recalls how complex products, opaque structures and misplaced confidence in credit quality combined to amplify systemic risk. “We could see how complex products and structures were developing, and we were worried about their effects,” he says. “But I was still surprised by how large and long‑lasting the consequences were.” That experience convinced him that risk could not be managed at the margins – it had to be built into everyday banking operations.
Regulation after the crisis
From Aaro Mäkelä’s perspective, the regulatory response that followed was not an overreaction but a necessity. “Competition in banking ultimately comes from a stable financial system,” he argues. “It is not possible for many banks to fail at the same time without serious costs to society.” While he acknowledges that compliance is expensive, he stresses that the intent is sound. “The idea of regulation is good and it is moving in the right direction,” he says, adding that understanding quality matters more than simply increasing the volume of rules.
From annual to continuous
One of the biggest changes Aaro Mäkelä highlights is the shift from periodic reporting to continuous risk management. “Many regulatory and risk processes are done on a daily basis today,” he explains. “Some liquidity metrics are almost real‑time.” This makes risk management fundamentally different from traditional audits. “Our data processes are designed to support daily banking functions,” he says, reflecting a reality in which compliance and operations are no longer separable.
Software with accountability
ALM Partners responds to this complexity with software‑based services that are tightly coupled with expertise. “For smaller and mid‑sized banks, we can take responsibility for the whole regulatory process,” Aaro Mäkelä says. “For larger banks, we provide systems they run themselves, supported by experts who operate at the same level as their internal teams.” He is clear that the firm’s role goes beyond tools. “We are not just software or consultants – our priority is solving the bank’s real regulatory problem.”
The data‑point model
At the core of ALM’s approach is what Aaro Mäkelä calls a European data‑point logic. “The same information should only be defined once, even if it feeds dozens of reports,” he explains. “We collect the data, run the calculations and then distribute it to regulators efficiently.” Crucially, this data also flows back into management to inform strategy. “That same information should drive business decisions,” he says. “Otherwise, regulation becomes just a cost, not a benefit.”
Scaling across Europe
Growth has followed steadily. With around 220 employees and annual growth of roughly 20%, ALM Partners has expanded from Finland into Sweden and beyond. “We realized we had a critical mass of clients in Sweden, so opening a local office made sense,” Aaro Mäkelä says. Europe remains the strategic focus. “Regulation is European, and Europe is where we are strongest,” he notes, even as competition intensifies in larger markets.
Ownership as motivation
Culture and ownership underpin that expansion. Aaro Mäkelä describes a deliberate choice to share value creation widely. “From the beginning, the idea was that the company is mainly its people,” he says. “If someone wants to be part of the economic journey, they can.” With a large share of employees also owners, motivation runs deep. “It brings commitment, competence and long‑term thinking,” he adds, despite the complexity of managing many stakeholders.
Talent as a growth engine
Aaro Mäkelä emphasizes that ALM Partners’ ability to scale rests as much on people as on technology. “We train most of our people ourselves,” he says. “Around 70% of new hires come through our internal training programmes.” Demand for roles is high, giving the firm unusual selectivity. “For some positions we receive hundreds, even thousands of applications,” Aaro Mäkelä notes. “The people we choose are extremely talented and they learn very fast.” This investment in skills allows the company to maintain quality while growing rapidly.
Technology and the future
Looking ahead, Aaro Mäkelä sees technology amplifying, not replacing, ALM’s core strengths. “Regulation, risk and data will stay our focus,” he says. “But new technologies and AI tools allow us to do these things more efficiently.” Expansion across Europe will continue, but always anchored in expertise. “Our role is to help banks function safely for society.”