Defining the future of regulatory reporting in North America.
Regnology’s recently appointed Product Director discusses her new role and provides a unique perspective on key regulatory reporting challenges in the North American markets.
Tell us a little about your professional background.
I’ve been working in the risk and regulatory reporting space for quite some time. I started my career at RBC, where I learned the inner workings of banking and managed several of their middle-office systems related to credit risk.
I then pivoted to work in the risk management sector at Algorithmics (when it was part of IBM), where I worked on implementations, development and supported clients on market, credit and liquidity risk, particularly around Basel. Before joining Regnology, I was at two other major RegTech vendors where I held global product management roles.
What attracted you to Regnology?
What drew me to Regnology was the fact that we are focused on regulatory reporting and have a unique value proposition. Regnology provides both SupTech solutions to regulators and RegTech solutions to the regulated. Supporting both sides of the regulatory reporting market. This gives us a rare perspective and a clear advantage over competitors.
Working with regulators gives Regnology an early look at the new reporting requirements before it gets published or takes effect. This enables us to make any necessary enhancements to our solutions well in advance, giving clients access to changes on Day 1. This approach contrasts with those of most other providers, which typically make system enhancements only after the new requirements have been formally announced.
Working with regulators gives Regnology an early look at the new reporting requirements before it gets published or takes effect.
Anh Chu
Product Director
Regnology
What issues are facing the North American regulatory reporting space? How does Regnology’s offering address this market’s needs?
First, Basel IV has been a long time coming, and selective jurisdictions have already started implementing much of the changes (including Canada in Q2 2023). The Regnology team has gleaned insights from our previous experience helping firms in Europe and around the world with their implementation processes. Thus, as the US get serious about Basel IV and Canadian complete their upcoming changes on FTRB and CVA, our US- and Canada-based clients are set up for success.
We can say with certainty that North American firms must focus on the granularity of their data as that is what regulatory reporting is heading towards – an area we’re well-suited to help them prepare for. Liquidity risk is another important area to consider. Given the major bank failures we saw in 2023 – SVB, First Republic and others – there is increased focus on how quickly reports are generated. Gone are the days when banks could take a whole month or quarter to generate a report – we’re trending toward a future where banks will need to report liquidity risk daily, which has historically been unfeasible due to the sheer volume of data. This will be a significant challenge and require solutions that can support vast amounts of highly granular data to generate the necessary reports within the proper timeframe. In response, we’ve seen banks increasingly look to cloud-based data management systems that will help them prep their data for automation.
We’re trending toward a future where banks will need to report liquidity risk daily, which has historically been unfeasible due to the sheer volume of data.
Anh Chu
Product Director
Regnology
What role is Regnology playing in helping banks implement AI in their reporting efforts?
While the cloud gives clients the scale to process heightened data volume, AI can help ensure that the data being used in reporting is accurate. We focus on helping banks upload their data to the cloud so it can be accessed instantaneously and on demand, and making sure it is as granular and clean as possible. These are the required first steps for firms seeking to embrace AI analytics.
We’re also working on a suite of solutions that use natural language processing to comb through documentation and provide insight on how to interpret regulations and implement that understanding into reports.
What is your data and regulatory expertise pertaining to the North American market specifically?
I’ve worked at banks supporting North American regulatory reporting efforts for the past 20 years. Now, in this new leadership role, I’m confident in my ability to provide additional perspective on specific interpretations of rules within Canada and the US. As an organization, Regnology brings vast experience from three decades in the regulatory reporting space, particularly in Europe, uniquely positioning us to offer a similar value proposition in North America.
Regnology is already working with one of the largest regulators in North America on its Basel IV reporting efforts, so we’ve established a footprint in this region. While nuances abound, the fact is that many regulatory processes are essentially the same across the globe. We’ve been immersed in this space for quite some time and have the expertise, platform and infrastructure to take on the North American market.
We’ve been immersed in this space for quite some time and have the expertise, platform and infrastructure to take on the North American market.
Anh Chu
Product Director
Regnology
What are some key trends you see defining the future of regulatory reporting in North America over the next five years?
In North America, there has been and will continue to be significant momentum around outsourced technology. Many bank compliance teams still use in-house, custom-built systems or legacy tech vendors. Now, as regulations become more complex, they’re feeling the pressure to plan for the long term – i.e., clean up their data and have the proper high-performance and scalable tech in place. We’ve seen great demand from regulators for banks to provide more detail with respect to data. Canada specifically is looking into moving away from purely template-based reporting frameworks and ramping up granular data efforts to provide regulators with real-time analytics.
Since we work from a platform perspective, we also see a future where there is less of a divide between regulators and the entities they regulate. We envision a more streamlined workflow between both sides of the equation, accelerating the exchange of information from one to the other in a seamless manner. By creating a robust, centralized ecosystem, there will be less guesswork and more clarity and harmony among all parties in the reporting landscape.
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A unified approach to address increasing regulatory complexity and higher data quality requirements.
Delivering a platform that streamlines the workflows of regulators and the regulated with a common user interface that enables the sharing of services and data and enhances communication.
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