16 July 2018
Kevin Cullen


Kevin Cullen - Volante Technologies

4Posts 40,549Views 0Comments
Innovation in Financial Services

Innovation in Financial Services

A discussion of trends in innovation management within financial institutions, and the key processes, technology and cultural shifts driving innovation.

How RegTech Could Keep a Firm from Being Overprotective

01 December 2016  |  5563 views  |  0

One solution to protecting financial data is simply to treat all data as sensitive. This would avoid the complicated work of developing and implementing complex data aggregation tools and procedures. However, this all-or-nothing approach would lead to unnecessarily large data storage requirements, especially in large firms. If a firm has global locations in varying jurisdictions, the problem becomes even more complex. According to the Institute of International Finance, limitations in IT systems in complying with multiple regulators can lead to inefficiencies in data aggregation which, in turn, can lead to "less sensitive data being over-protected and under-utilized because it is held in cumbersome datasets with more sensitive data."

Certain RegTech solutions can directly address this issue. By applying intelligent data extraction tools that are based on key fields, a subset of required data comprised of only required information can be created. The centralization of non-sensitive data eliminates the need for repeated calls to back-end systems for each required regulatory end-point. Further, metadata management applications can be deployed to further analyze large volumes of data through direct calls to a single instance of the database.

If supporting multiple database systems across the enterprise, the identification of sensitive data fields will require the creation and maintenance of separate subsets. In addition, if global locations are utilizing different systems, not only will there be a need for separate subsets but jurisdictions may require additional or different information. A common and recurring problem within the global financial industry is the different definitions and terms for central concepts between regulatory jurisdictions and markets, making gathered data hard to aggregate and map. Until global harmonization of terms and accounting standards are agreed (if ever), the use of intelligent mapping tools to define common but disparate fields across systems will be required. Solutions with robust rules-based business logic that can be applied to varying data models will be in high demand.

The exercise to build extracts based on sensitive data elements may be the first major task in creating a RegTech compliance roadmap. Next logical step would be to identify common field requirements across global locations and jurisdictions for compliance reporting. 

TagsRisk & regulationInnovation

Comments: (0)

Comment on this story (membership required)

Latest posts from Kevin

Preparing for Real-Time Payments in the US

13 December 2016  |  14099 views  |  0 comments | recomends Recommends 1 TagsPaymentsTransaction bankingGroupInnovation in Financial Services

How RegTech Could Keep a Firm from Being Overprotective

01 December 2016  |  5563 views  |  0 comments | recomends Recommends 0 TagsRisk & regulationInnovationGroupInnovation in Financial Services

Applying Blockchain Technology to Trade Finance

19 September 2016  |  12002 views  |  1 comments | recomends Recommends 2 TagsBlockchainWholesale bankingGroupFinancial Supply Chain

The Need for Messaging Standards in Blockchain

16 September 2016  |  8886 views  |  2 comments | recomends Recommends 1 TagsBlockchainPost-trade & opsGroupStandards Forum

Kevin's profile

job title Business Development Director - Americas
location Jersey City
member since 2016
Summary profile See full profile »

Kevin's expertise

Member since 2016
4 posts0 comments
What Kevin reads
Kevin's blog archive
2016 (4)

Who's commenting on Kevin's posts