Regtech has the potential to revolutionise regulators’ insights into the financial system. Indeed, it already has. While it could be argued that 2008 was the catalyst for much of the regulatory reporting we see today, introducing technology to monitor risk grew alongside the development of the banking sector.

A key challenge for reporting entities and regulators alike is developing regulatory requirements and technological updates to maintain financial stability. Central Banking speaks to Clément Duhamel, business development and customer success manager at Invoke Software, about the evolution of regtech.

“Regulatory requirements are constantly evolving,” Duhamel says. For example, the European Central Bank’s (ECB’s) Integrated Reporting Framework is to be implemented by 2027. It will establish a unified data dictionary for all statistical requirements at the European level.

The European Banking Authority’s (EBA’s) Integrated Reporting System will follow the principles established by the ECB’s reporting framework and the two complement each other. The framework will collect data on a transactional level and the system will add prudential resolution information on top of that. 

To optimise the system at all levels, Duhamel speaks about the work the EBA is doing with the XBRL community to improve the data exchange format. 

Index

0:07 Introduction

1:04 Defining regulation as a service

2:37 Developments on the horizon: the European Commission’s banking data strategy

4:49 The ECB’s Integrated Reporting Framework and the EBA’s Integrated Reporting System

7:45 Improving data collection formats: work by the EBA with the XBRL community