Data Lineage: Core to Compliance Reporting

The Bank of England reiterated its demand that financial institutions improve their data governance and reporting systems last year.

The regulator is reiterating that banks must be able to trace, validate, and justify every statistic they provide by advocating for greater lineage and stronger data governance. This focus on traceability is not only about compliance; it also represents the increasing understanding that good risk management and well-informed decision-making depend on data integrity.

Recently, ALMIS International, which provides a SaaS-based cloud platform to facilitate data management, investigated whether financial institutions should address the risk associated with their financial data.

As part of the regulator’s continuous oversight efforts, the Dear CEO letter found recurring flaws in the systems, governance frameworks, and production controls of several companies. These conclusions are the result of a number of competent personnel examinations that exposed structural flaws in the way businesses handle, process, and disclose their regulatory data.

The BoE emphasized that timely, accurate, and comprehensive regulatory submissions are essential to efficient supervision.

The idea of data lineage, the capacity to track data from its source through each step of modification and reporting, is essential to this endeavor. Transparency, accountability, and trust in the veracity of financial reports are all made possible by effective lineage.

ALMIS^® International has improved its bank treasury data warehousing and reporting apps to meet these issues. Its solution provides complete drilldown capabilities back to the transaction level and tracks all data enrichments and updates per transaction.

Future developments are expected to be fueled by the PRA’s Banking Data Review and the BoE’s Transforming Data Collection Program. By redefining the collection and prioritization of financial data, these initiatives will set the stage for a more efficient and successful regulatory reporting system.

Three primary areas will be the focus of the reforms: creating uniform data standards, updating reporting guidelines, and streamlining reporting procedures for increased effectiveness.