Regulatory data management top concern for financial supervisors 2021

Regulatory Data Management presents a challenge for the financial services sector as regulators around the world introduce new rules each quarter. The volume of data is enormous, but technology and collaboration can help automate how we collect and interpret data. Here's what is top of mind for financial regulators in 2021.  

Ninety percent of the data created in the world was produced in the last two years.  

The relentless growth of data impacts every sector, including the world's leading central banks and supervisory authorities. Trends in financial supervision are leading not just to more data but to greater data complexity and enhanced scrutiny of regulated entities. 

Against this backdrop, it is no surprise that Regulatory Data Management and Data on Demand: Push & Pull, are key areas of interest for regulators in 2021. That's according to insights we gathered from 48 leading supervisory authorities across the world, including the UK, Canada, Singapore, Australia and Saudi Arabia.  

Our findings reflect current industry trends toward standardisation of regulatory data models and new channels or architectures for data collection. Both financial regulators and the institutions they regulate need better solutions. Automation, like Regulatory Data Management, is an essential part of solving this problem. 

What is Regulatory Data Management? 

Regulatory Data Management is a crucial component of the regulatory life-cycle. It became more important after the 2008 financial crisis when governments began regulating financial services companies more closely. New regulations - including cross-border regulations - come in all the time, and the volume of data this involves poses a challenge for financial institutions in terms of regulatory data management.  

As well as the increased rate of change in regulatory reporting trends, there are challenges around data interpretation and transformation. Working closely with the regulators, we have created our own Regulatory Data Management (RDM) process, which is highly impactful software that includes standardised practices, user-friendly and portable tools, platform-based process and training.  

A catalyst for collaboration in Regulatory Data Management 

Success in Regulatory Data Management needs deep collaboration: a coming together of the world's leading central banks, supervisory authorities, industry thought leaders and subject matter experts.  

In a year of unprecedented challenges, a joint report by the World Bank and the Cambridge Centre for Alternative Finance noted ongoing support from FinTechs to Covid-19 relief efforts in their jurisdictions, explicitly stating the role of FinTech in business continuity during the pandemic. 

We believe in sharing knowledge and building relationships. That's why we began hosting an annual SupTech conference in 2019. While the pandemic has robbed us of the opportunity to meet face-to-face this year, we are committed to bringing together our growing community of customers, experts and partners to share their experiences and contribute to the future of regulatory data management. 

This year, we're doing monthly workshops online instead where our community of Financial Regulators can come together. Our recent Product Roadmap session allowed participants to keep up to date with the latest industry trends and learn about service updates. It also allowed us to gather insights to inform the topics for future sessions.  

What else are financial regulators thinking about in 2021? 

While Regulatory Data Management and Data on Demand: Push & Pull, emerged as key areas of interest financial regulators a number of other areas were also noted including granular data, machine learning, cloud and containerisation. The umbrella trend of all these areas of interest is the quality, resourcing, timing and data management challenge for both regulators and the regulated. 

We'll be addressing these challenges and opportunities in our forthcoming online sessions. 

Next sessions: Regulatory Data Management and Data on Demand 

Our online sessions have proved invaluable opportunities to keep a finger on the pulse of industry trends and share insights. With participants from financial regulators worldwide, they provide a chance to build your global network despite the pandemic.  (*dates to be confirmed): 

• Data on Demand: push & pull 

Data on Demand is a popular term used to describe financial regulators' goal to collect and access data in a more seamless way than they have in the past. The aim is to receive more timely data, reduce human effort and reduce human error using 'push' or 'pull' approaches.  
 
This session will look at using API when working with financial regulators – the push and pull approaches to collect data, key challenges and trends, showcasing our APIs use cases including the Bank of Ghana. 

• Regulatory Data Management  

Our Regulatory Data Management approach eliminates duplication, creates a common language, and allows clients to use tools that the regulator is already using. It is highly automated and supported by our team. This deep-dive session covering the process, structure and teams involved in Regulatory Data Management and how we can help.