Participants Explore How Technology Can Provide Solutions to the Increasing Challenges Financial Institutions Face Implementing Their Regulatory Reporting Obligations
Hitachi Vantara, a wholly owned subsidiary of Hitachi, Ltd. (TSE: 6501), announced today the success of this autumn’s regulatory reporting TechSprint convened by the Financial Conduct Authority (FCA) and the Bank of England. As strategic collaborators, Hitachi Vantara hosted the two-week event at their London offices and provided data expertise to examine the potential to deliver machine readable and executable regulation.
Participants of the two week TechSprint were Hitachi Vantara, the FCA, the Bank of England, Grant Thornton, Credit Suisse, Santander, HSBC, Governor Software, Immuta, JWG, Linklaters, Lombard Risk, Model Drivers, Regnosys, Stanford University, Willis Towers Watson, University College Cork, and The Information Society Project at Yale Law School. They worked together to map an FCA regulatory requirement directly to financial institutions’ data. The TechSprint aimed to lay the groundwork to automate processing of regulatory reporting, which in turn could substantially reduce the need for costly interpretation within banks.
“The event we hosted was the first of its kind, working across the entire financial services ecosystem with key industry stakeholders,” said Nirvana Farhadi, global head of financial services, RegTech, risk and regulatory compliance, Hitachi Vantara. “Our challenges are not limited to just one particular sector, so it takes exactly this sort of holistic, pragmatic and collaborative approach for our industry to solve them as the seismic shift towards digitization happens.”
The TechSprint participants successfully proved it is possible to make a regulation machine readable and executable. After mapping a firm’s physical data model to a specific FCA regulation, participants showed reporting returns being automatically updated to satisfy a regulatory rule change. A tangible spirit of collaboration made this success possible. It also illustrated the benefits of bringing together the financial services ecosystem, and the collective knowledge that comes with this, to solve a common problem.
A team of Hitachi Vantara developers used Hitachi Vantara’s Pentaho big-data integration and analytics platform at the TechSprint. The model-driven, automated data ingestion capabilities allow firms to rapidly load and blend new data sources. Business analytics create actionable views of the data to help drive business critical initiatives for the organization.
The platform helps financial institutions take advantage of machine learning algorithms throughout their organization, enabling predictive analytics that deliver value to the enterprise.
In 2016, Hitachi joined the FCA’s TechSprint to work together to develop technology tools and concepts to help address the link between financial difficulty and mental health problems. This experience gave the company tremendous insight into the challenges faced by some of the most vulnerable in society.