Fast pace of regulations is haltering the move to integrate regulatory data

The fast pace of regulatory change and changing regulations are hindering the move to integrate regulatory data according to new research.

The vast majority of global banks are planning to integrate their regulatory workflow data. However, according to a new survey from Wolters Kluwer’s Finance, Risk & Reporting business and The Financial Times owned publication, The Banker keeping up to date with regulatory change, as well as staying compliant with changing regulations and adhering to respective regulatory deadline are haltering that plan.

Wolters Kluwer and The Banker asked more than 100 senior level executives in risk, finance and compliance functions in banks across the world for their views on the data challenges they face.

According to the survey, 95.6 per cent of respondents plan to integrate data across their regulatory workflows in the long term. Almost eight in ten revealed they had partially integrated this aspect of regulatory compliance, with plans in place for further integration.
However, only 6 per cent of respondents have completely integrated regulatory workflow data.

With three-quarters of respondents believing creating an integrated and consistent view of data across the business was a major technological challenge, just under half (46.0%) also pointed to integrating and merging technology as a significant challenge.

The top concern for banks is keeping up to date with the pace of regulatory change (55.8 per cent), followed closely by keeping compliant with changing regulations and adhering to regulatory deadlines (54 per cent). Worryingly, 41.6 per cent said they found interpreting regulations a challenge, which could suggest that some firms are struggling to source the appropriate expertise.

“Integration should help firms to develop regulatory compliance and reporting solutions that answer the need for increased data granularity and transparent data lineage. This new survey shows just how important regulatory data integration is for the world’s banks,” comments Rajat Somany, vice president, global product & platform management for Wolters Kluwer’s Finance, Risk & Reporting business. “Creating and maintaining such solutions requires a focus on data structure and management that permits each piece of information to be understood in the context of others – as a detail when it’s necessary to consider it on its own, but also as a piece of a much bigger puzzle.”

Regulators’ focus on data has put pressure on financial firms’ practices. Nearly 62 per cent of respondents cited achieving the required data quality as a challenge. The next biggest challenge is ensuring data consistency (53.1 per cent), followed by data availability and the sourcing of critical attributes (49.6 per cent).

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