NEW YORK, Oct. 5, 2023 /PRNewswire/ -- Regulatory reporting is a complex and time-consuming process for financial institutions. A new white paper from Suade, a leading provider of regulatory reporting solutions, written in conjunction with a panel of leading regulatory reporting professionals, argues that data standardization can help streamline and revolutionize the way financial information is collected, analyzed, and shared.
"Regulatory reporting requires two levels of standards, one granular and one aggregated," said Murat Abur, CTO of Suade. "Granular standards must come from the industry, and aggregated ones from regulators."
The white paper highlights the following key benefits of data standardization for regulatory reporting:
- Increased efficiency and reduced costs: Data standardization can help financial institutions automate many of the manual tasks involved in regulatory reporting, freeing up resources for other activities.
- Improved accuracy and consistency: Data standardization can help reduce errors and inconsistencies in regulatory reporting data, which can lead to fines and other penalties.
- Enhanced transparency and accountability: Data standardization can help improve the transparency and accountability of financial institutions, boosting public confidence in the financial system.
A Blueprint for Success
The white paper also outlines a general blueprint for successful data standardization, gathered from the advice and experience of data standardization experts in the financial sector and other industries. The blueprint includes the following key steps:
- Develop a clear and concise definition of the objective of the data standard.
- Create a comprehensive data dictionary that includes clear and precise definitions of all data elements, as well as the relationships between them.
- Define a syntax or format for data exchange that ensures compatibility and interoperability between systems.
- Provide practical, real-world examples of how the data standard would be used.
Standardization is Essential
The white paper concludes by stating that data standardization is essential to the future of regulatory reporting. By adopting data standards, financial institutions can improve the efficiency, accuracy, consistency, transparency, and accountability of their regulatory reporting.
Industry Experts Agree on the Need for Cooperation
Industry experts agree that it is not a lack of standards in the regulatory reporting process; it is a lack of cooperation and coordination. Regulatory reporting standards exist; they are just not being used.
"The industry needs to come together and agree on a set of common standards," a Head of Regulatory Reporting from a Tier 1 US bank stated. They continued, "Once we have those standards in place, we can start to automate the process and make it more efficient for everyone."
The Way Forward
The way forward for data standardization in regulatory reporting is clear: the industry needs to work together to develop and implement a set of common standards. This will require cooperation and coordination from all stakeholders, including financial institutions, regulators, and technology providers. By working together, the industry can make regulatory reporting more efficient, accurate, and consistent, benefiting everyone involved.
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