Key Regulatory Reporting Challenges Solved by the Smart Data Lake

Posted by Marty Loughlin on Jun 15, 2015 1:19:11 PM

Ernst and Young just released their 2015 Federal Reserve regulatory reporting survey looking at how firms are adapting to the new standards. The survey covered 5 key topics but two stood out as areas where new smart data solutions could add immediate value for the banks: Report Preparation and Data &Technology.

For Report Preparation, the survey indicates that organizations are spending more than 50% of their time preparing regulatory reports versus doing analytics and review. "System limitations and data integrity" issues resulting in many manual adjustments were cited as the key reasons for this.

For Data & Technology, most banks have partially automated the reporting process but data quality and data granularity continue to be a challenge. Many banks continue to rely on "ad hoc data sources and Excel" to meet data granularity requirements.

A Smart (semantic) Data Lake can help alleviate much of the pain around these issues. 

  •          A Data Lake takes raw, untransformed data from source systems. Using this approach, data can be extracted from even the most archaic of legay systems and therefore liberated from the constraints of those systems. The granular transaction data is preserved for reporting and analytics - especially valuable when the exact use may change as reporting requirements evolve over time. This provides a system of record for granular data and eliminates the need for ad hoc data sources
  •          Describing all data using a common semantic model (either an existing enterprise model or an industry standard like FIBO from the EDMC) enables harmonization of data, based on its meaning, regardless of source format. Representing data in common, business friendly terms drives improved data quality and reduces the need for manual adjustments. It also lays groundwork for a future where the regulators themselves may adopt FIBO.

The regulatory reporting environment is evolving quickly, placing unprecedented demands on legacy processes and technology. However, innovative new solutions like the Smart Data Lake are enabling transformative data solutions that can be rapidly deployed and evolved over time as needs change.

The Ernst and Young survey can be found here:

More on Smart Data Lakes here:

Tags: Data Management, Data Governance, Compliance

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