JWG are pleased to announce new research in partnership with MarkLogic, which shows that financial institutions are ill-equipped to deal with the data demands of new regulation.
During Q4 2018, JWG conducted in-depth interviews with senior executives from 12 global financial institutions to develop the insight published in a subsequent paper titled ‘ Regulatory Reporting: time for a rethink’. The paper detailed the challenges that firms are currently experiencing in meeting their regulatory reporting obligations. This new paper builds on that to work to look at the data foundations underpinning some of these difficulties and the potential way forward for firms wishing to utilise an alternative approach.
In conducting this research JWG used a Quantitative Research method to evaluate the global regulatory pipeline between now and 2021. Drawing upon RegDelta, our next generation regulatory data platform and our detailed experience of global regulatory publications we analysed over 100 different regulatory websites to conduct this analysis. We find that the pace of regulatory change continues to be very high with 374 ‘legislative initiatives’ targeted at financial services by 2021. Furthermore, we find that there is no prospect of this rate slowing down beyond 2021 and predict 524 regulations will be in the window for implementation by then.
It is not just the volume and pace of change which challenges firms, it is also the enormous breadth in terms of activities, processes and functions which will be governed by new rules. Firms must comply with similar but different rules multiple times. In checking compliance, regulators are increasingly asking for the audit trail of the decision-making process. The ‘how’ is becoming as important as the ‘what’ and the ‘ad-hoc’ requests are becoming more frequent. In short, the regulation is becoming data driven or quantitative and firms will need better data to show to their regulators.
It is now vital that the board agrees an agile approach to managing legacy systems and put in place a good data foundation not only for compliance, but also for broader business needs. It will not be possible to implement innovative technologies such as AI, machine learning, natural language processing and distributed ledgers with solid data foundations.
In March we will be running a webinar which will debate and explore the findings of this new report. Join us to hear what the experts are proposing be done now to make your data foundations ready for when the regulator is truly digital:
Our panellists will be:
- PJ Di Giammarino, CEO, JWG
- Nick Cook, Head of RegTech and Advanced Analytics, FCA
- Francis Gross, Senior Adviser Directorate General Statistics, ECB
- Jeff Bandman, Bandman associates, former head of CFTC labs
- John Neasham, Director CDO, Deutsche Bank
- Giles Nelson, Chief Technology Officer, Financial Services, MarkLogic
Our speakers will consider how firms can adapt their data architecture to meet regulatory demands which are no longer only interested in simple inputs and outputs but also the audit trail of the decision-making process around compliance.
All registrants will receive a free copy of the full JWG research report.
To register for your free place, click here now
We will be continuing this discussion at our annual RegTech Conference due to take place June 7, see here for more details.