
Challenges of Regulatory Reporting
Bank Compliance teams today rely heavily on manual efforts to generate
multiple regulatory reports and assess the reports for potential risks with regards
to customer accounts and transactions.
These manual data massaging can have broader implications for the banks
as data manipulation and reporting errors can lead to regulatory compliance defaults,
penalties and reputation risks.
To further discuss, there are challenges with the information that
supervisors receive from parent systems for regulatory reports, such as the
ones listed below.
Challenge |
Description |
Template-Based and Aggregated |
Template-based regulatory reports, ask for data aggregation and varied
data sharing protocols, meaning that data sets are fixed to a use case and
hence the data received cannot be easily reused for other purposes. With continuous regulator guideline changes - reporting formats, data granularity
and validations are needed. |
Data inconsistency and legacy systems |
Legacy systems are primary sources of data within reporting firms and
these systems are not always integrated. This often results in base data pooling for any given product or
transaction – both within a bank and across different banks – as systems would
describe these data fields differently. |
Infrequent
backward looking |
Compliance and department supervisors are liable to send the reports to
regulatory entities on an infrequent basis (eg. Daily, fortnightly, monthly,
quarter, etc). The need for an up-to-date report and data view is rarely facilitated given
the static nature of regulatory reports, compliance team may not have the
timeliest data to make informed judgments. |
Different sources of data are not integrated |
Information contained in regulatory reports are often linked with
other types of information that may point to emerging risks, but these
sources of information are not connected. For example, market sourced information and data fields are often the
first indications of emerging risks but it is difficult for bankers to scan
through the vast volumes of market and news data across dashboards / files to
assess the need for taking early action and reporting the same proactively. |
The challenge is how supervisors can form an accurate picture of account
/ transaction level risks, regulatory compliances and have insights into comprehensive
regulatory submissions using the built-in data sets.
Kyzer Trade Finance Regulatory Suite therefore explores how compliance /
supervisory teams can better identify and assess account / transaction level
risks, regulatory compliances and have insights into comprehensive regulatory
submissions to enable early supervisory action.
The Reporting Suite ensures handling of all reports to RBI, DRI, DGFT,
FIU-India and various government bodies with secure data management and warehousing.
Our unique offerings can revolutionise your trade compliance operations and risk
management.