Regulatory Reporting Excellence: A Large Swiss Bank's Success Story
A large Swiss bank was facing challenges with its capital reporting due to multiple sources of data and complex IT infrastructure. The bank had to comply with Basel 3 regulatory reporting requirements, which incurred significant operational and IT costs. The main issues stemmed from segregated investment banking and private banking applications, leading to data silos and multiple teams scattered across different regions.
Key Business Challenge
The bank encountered several challenges in meeting its Basel 3 regulatory reporting obligations:
Segregated Data: Data was spread across various systems and applications, resulting in difficulties in consolidating and harmonizing the reporting data.
Data Governance: Lack of a robust data governance framework made it challenging to ensure data quality, lineage, and compliance with regulatory requirements.
Process Harmonization: The bank needed to streamline and standardize its reporting processes and controls across the revised application and data architecture.
Data Quality Management: Addressing data quality (DQ) issues was crucial to ensure accurate and reliable reporting before finalizing the data for regulatory submissions.
To tackle the complex challenges, an end-to-end (E2E) approach was adopted to transform its capital reporting process, data, and application architecture. The key elements of the solution included:
Data Governance: Conducted data profiling and cataloging of reporting critical data elements; Established data lineage to understand data flows between old and new systems.
Capital BPM: Harmonized its reporting processes and controls according to the revised application and data architecture, ensuring compliance with regulatory standards.
Reporting Data Domain: Implemented a big data platform to consolidate granular reporting data from various sources, breaking down data silos.
Data Management: Introduced a business workflow to review and remediate data quality issues before finalizing the data for regulatory reporting, enhancing the accuracy and reliability of the reports.
Reporting Layer: Implemented a Qlik-based self-service mechanism for internal MIS and front office handoffs, providing quick access to critical reporting insights.
The transformation initiative brought about several positive outcomes for the bank, enhancing its regulatory compliance and operational efficiency:
Compliance to Regulatory Standards: Achieved compliance with BCBS 239 requirements through necessary documentation, review, and attestation processes.
SoX and RDAR Compliance: Ensured adherence to SoX and RDAR compliance statements.
Scalability and Responsiveness: The new data and application architecture improved scalability and response time, enabling the bank to adapt to future reporting changes more efficiently.
Faster Reporting Cycle: The streamlined processes and data quality management resulted in reduced business cycle times for periodic capital reporting, saving time and effort.
Cost Savings: The transformation led to a lower cost of ownership for both technology and operations, reducing the overall operational and IT expenditure.