Regulatory reporting refers to the analysis, recording and submission of data to demonstrate compliance with laws and regulations. As the demands on companies and financial institutions in this area increase, it is important to monitor the huge amount of data in circulation very carefully but also very efficiently in order to detect unusual patterns. What methods and tools are available to make this process easier?
Growing demand for regulatory reporting
Regulatory reporting is, of course, not entirely new. Recording data and reporting on it is done everywhere and in all kinds of ways. In a well-functioning organisation, there are periodic internal and external audits and protocols to ensure that the correct procedures are followed. A new development is that the demand from all kinds of national, European and global bodies for regulatory reporting is increasing. This increases the pressure on organisations to deliver solid reports. And that results in a search for the most efficient and reliable ways to be compliant.
Research and reporting
Investigators and analysts in the compliance and risk management departments of banks, mortgage lenders, insurance companies, payment processors and accountancy firms are not only expected to investigate unusual activities, they are also required to keep reports. With regulatory reporting, the results of their investigations and analyses are processed and shared with decision-makers within their companies, internal and external auditors, local authorities and financial supervisors.
Data processing and storage are crucial
It is important to correctly process the relevant data with a regulatory reporting tool. To this end, the storage and archiving of clean and high-quality data is crucial. Who has access to which data is legally determined and must be carefully classified. Reading out and processing analysed document files takes a lot of time and manpower. Data must be collected, correctly interpreted and transformed into clear statistics, graphs and tables.
This requires good integration and cooperation between a DMS and a reporting solution. Good regulatory reporting solutions meet all these requirements.
Make data searchable
For decades, large financial institutions have stored millions of paper and digital documents. Often, these documents are difficult to read, archived in different locations and contain incorrect, incomplete and old data. This data consists of elements that, according to the current privacy legislation, should not be accessible to every employee. Digitalisation is a first step, but there is much more to efficient and accurate DMS. Data must be easily searchable. Regulatory reporting is the modern way to do that.
Reporting tools discover unusual patterns
Using the latest regulatory reporting technologies can save a lot of time. Relevant data is automatically screened using data mining and data analysis and processed into clear charts. Reporting tools can be configured according to the needs of the company and its compliance department.
If the data is correctly stored, in compliance with the latest privacy regulations and properly searchable, AI and ML driven Regtech solutions can accurately analyze the document sources. Artificial intelligence detects unusual or salient relevant patterns that would escape manual review and processes them into a report.
Artificial intelligence detects unusual or salient relevant patterns that escape manual review and processes them into convenient and intuitive reporting tools. Reports can be exported as Word Doc, PDF, XBRL or iXBRL and presented in any format.
Making compliance easier
Regulatory reporting tools make the work of compliance officers much easier and are a huge godsend for financial services companies that don’t want to worry about non-compliance.
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