Financial Services Organizations Rethink Regulatory Reporting to Focus on Agility and Value from Data as Costs and Requirements Spiral
- Compliance , Regulatory Standards
- 15.10.2015 01:00 am
The cost and resource burden of regulatory reporting has soared in recent years, and financial firms seek ways to meet deepening data requirements more efficiently and accurately while strategically evolving data architecture to improve performance and drive growth. To address these issues, financial services organizations are rethinking regulatory reporting and compliance as a holistic process and seeking end-to-end automation and governance—from data capture and analysis to reporting including final mile submission to regulators.
“Some of the world’s top banks leverage Oracle Financial Services Analytical Applications to simplify their reporting requirements. The U.S. Federal Reserve issued guidance that financial institutions should spend 80% of the time allocated for regulatory reporting on analytics/reviews and 20% on data compilation. We support our customers in meeting this guidance and reducing the hours it takes to compile the data, which has traditionally been a manual and error-prone process,” said Sultan Khan, Group Vice President, Oracle Financial Services Analytical Applications.
“Financial services organizations face a regulatory reporting paradox. Reporting requirements have grown dramatically in terms of volume and complexity—driving up costs and consuming significant resources on what remains a largely manual and siloed task,” said Daniel Mayo, chief analyst, Financial Services Technology, Ovum. “At the same time, regulators are directing firms to spend less time on report compilation and more time on analysis. To succeed in this environment, financial services institutions must tackle regulatory compliance as a complete process and seek an integrated risk and finance data foundation to enable end-to-end automation from data input to data governance to analysis and through regulatory submission. Oracle Financial Services Regulatory Reporting Solution is purpose-built to tackle this imperative.”
“With increased regulatory oversight, financial firms are aggregating significantly more risk and finance data for reporting and there is business value to be gained from this information beyond compliance to regulatory reporting requirement. The challenge for many is gaining enterprise-wide visibility and ensuring adequate time and resources to fully analyze and gain new insight from this data. A single and complete environment for automating data capture, governance, analysis and reporting is increasingly essential,” added Khan.
Responding to changing regulatory compliance and reporting requirements, Oracle today announced Oracle Financial Services Regulatory Reporting Solution, a first-to-market offering that automates reporting from data input through regulatory submission. It features Oracle Financial Services Data Foundation as well as a reporting portal that integrates Lombard Risk Regulatory Report templates for final-mile automation.
The new solution helps financial services organizations manage and execute regulatory reporting in a single integrated environment. It automates end-to-end processes from data capture through submission with industry-leading solutions, streamlining and reducing the day-to-day resource burden of an arduous, error prone, and manual process managed through myriad point solutions or spreadsheets. Oracle Financial Services Regulatory Reporting Solution frees firms to focus on analyzing and gaining new insight from their growing data stores while simplifying data preparation and reports with the sole objective of meeting regulatory submission deadlines.
Time to Look Deeper
A study by policy analyst firm Federal Financial Analytics found that, between 2007 and the end of 2013, regulatory costs rose by 102 percent for the six largest U.S. banks—totaling $70.2 billion for those institutions alone. In addition, even as the number, frequency, and complexity of regulatory requirements and reports continue to spiral upward, regulators are strongly encouraging firms to spend more time on analysis and review.
Oracle Financial Services Regulatory Reporting Solution is delivered through the following components to create the end-to-end environment and automation that financial firms seek to facilitate reporting and gain new business insight:
- Oracle Financial Services Data Foundation: A ready to go analytical data platform that supports a suite of analytical applications that address risk, compliance, performance, and customer insight. The data foundation, by design, is created to establish standardized data patterns for these use cases. It comes pre-built with data flows for regulatory reporting. Built using the Financial Services Analytical Applications Infrastructure, it provides tools for data and metadata management. Coupled with a robust reconciliation engine, the data foundation delivers a single source of truth for all reporting requirements.
Reporter Portal: The Oracle Financial Services Regulatory Reporting Solution works with the Lombard Risk Regulatory Reporting solution and enables firms to automate the final mile of the regulatory reporting process. It provides a framework that works with the Oracle Financial Services Data Foundation results model and enables a complete submission workflow. The Reporter Portal supports pre-built report templates across multiple jurisdictions and regulators across the globe. Lombard Risk, one of the industry’s leading regulatory reporting packages, eliminates the need for further data mapping, manual intervention, and eliminates the cost and effort financial institutions have to spend integrating multiple tools and applications.
1 “The Regulatory Price Tag: Cost Implications of Post-Crisis Regulatory Reform,” Federal Financial Analytics, Inc., July 30, 2014, http://www.fedfin.com/images/stories/press_center/Press_Release_PR_073014.pdf.