It’s time for standardization of data for regulatory reporting, Suade white paper argues
“Regulatory reporting demands dual standards: one at a granular level and one more aggregated,” says Murat Abur, CTO of Suade. “Granular standards should be driven by the industry, whereas aggregated ones should stem from regulatory bodies.”
The call for streamlining the daunting task of regulatory reporting is growing louder.
A new white paper from Suade, a provider of regulatory reporting solutions, offers a persuasive argument: the standardization of data can revolutionize the way financial information is gathered, scrutinized, and disseminated.
The case for dual standards
“Regulatory reporting demands dual standards: one at a granular level and one more aggregated,” says Murat Abur, CTO of Suade. “Granular standards should be driven by the industry, whereas aggregated ones should stem from regulatory bodies.” The white paper posits three main advantages of data standardization for regulatory reporting:
Efficiency and Cost Reduction: Automating numerous manual tasks involved in regulatory reporting can liberate resources for other key activities.
Enhanced Accuracy and Consistency: Standardized data minimizes the scope for errors and inconsistencies, which can otherwise result in fines and penalties.
Improved Transparency and Accountability: By standardizing data, financial institutions can bolster public confidence in the financial system through enhanced transparency and accountability.
“The industry must unite to agree on a set of common standards”
The white paper also provides a comprehensive blueprint, synthesized from the insights of experts in data standardization from the financial sector and beyond. It comprises key steps, such as formulating a clear objective, creating a detailed data dictionary, defining a syntax for data interchange, and citing practical, real-world examples of the standard’s application.
While standards for regulatory reporting exist, they are often underutilized due to a lack of cooperation and coordination. “The industry must unite to agree on a set of common standards,” asserts a Head of Regulatory Reporting from a Tier 1 US bank. “Once established, these standards will pave the way for automating the process, benefiting all stakeholders.”
The onus for catalyzing this change does not lie with financial institutions alone; it also falls upon regulators and tech providers. The white paper concludes that the future of efficient, accurate, and consistent regulatory reporting hinges on industry-wide standardization of data.
As the debate around regulatory reporting advances, the white paper from Suade offers a well-argued case for how standardization could be a game-changer, improving not just efficiency but also the overall quality and reliability of financial data.