The Core Banking System is the lifeblood of any financial organisation, driving everything from customer account information, transaction data and risk management. In the current era of rigorous regulations and increased scrutiny, the veracity and comprehensiveness of data within CBS have become vital.
Data integrity is essential in regulatory reporting, like the FSCS Single Customer View (SCV) report. This report evaluates potential risks and liabilities by offering a comprehensive overview of a customer’s financial condition. Timely and precise generation of regulatory reports necessitates a strong data foundation to avoid severe financial penalties and reputational harm.
To manage this complicated landscape, financial institutions must maximise the capabilities of their core banking systems. They can meet regulatory requirements and gain a competitive edge by turning raw data into useful insights. This blog discusses how a well-integrated core banking system can improve data accuracy, completeness, and efficiency in regulatory reporting.
Understanding FSCS and SCV Reporting
The Financial Services Compensation Scheme is the final avenue for customers of authorised financial services firms that cease operations. The SCV report is a critical element of FSCS’s operations. This report offers a concise overview of a financial institution’s investment portfolio, which is essential for evaluating potential liabilities and payments in the event of insolvency.
Data Extraction and Its Challenges
Following challenges make the intricate task of creating timely and accurate SCV reports:
Relying on Outdated Systems
Many financial institutions utilise a combination of enterprise resource planning (ERP) systems and Core banking systems (CBS), which may be either modern or legacy. The extraction of data from these legacy systems is frequently a time-consuming and error-prone process due to the absence of robust API connectivity. It can be difficult to retrieve data from these platforms.
Siloed Data
Data fragmentation across numerous databases is a prevalent concern. It is possible for transaction data, investment assets, and customer information to be stored in separate systems. This isolated approach results in inconsistencies in data formats, quality issues, and the inability to establish a unified perspective on the institution’s portfolio.
Manual Processes and Excel Dependence
Numerous organisations continue to implement manual procedures that involve Excel spreadsheets. While Excel provides adaptability, it is susceptible to human error, disparities, and scaling challenges. Additionally, spreadsheets can be exceptionally hard to maintain and audit.
Data Acquisition, Cleaning, and Validation
The task of collecting data from a range of sources, verifying its accuracy, and converting it into a format that is suitable for SCV reporting is complex. Data cleansing necessitates specialised skills and is time-consuming, as it entails the identification and correction of errors, inconsistencies, and missing values. Validating the final dataset to assure its dependability is another essential step that is sometimes forgotten.
How Core Banking System Integration Solves Data Collection Issues
Integrating the CBS (Core Banking System) with the SCV (Single Customer View) reporting tool simplifies data collection by utilising secure API integration procedures with a variety of core banking systems, including Finastra Equation, Temenos, and Flexcube.
This integration enables the seamless exchange of data between the CBS and the SCV tool, thereby guaranteeing the efficient extraction and consolidation of data to provide a comprehensive view of customer data.
Considerations for integrating an API to retrieve customer data
Security and Privacy of Data
- Financial-grade APIs that are designed with comprehensive security measures to safeguard sensitive customer data can be implemented to ensure secure data transfer.
- They should follow worldwide compliance standards and adhere to OWASP recommendations for data encryption and safe data transfer.
Access Control
- Establish precise access controls to limit access to customer data based on user roles and permissions.
- Conduct routine audits and monitoring of customer data access to detect and prevent unauthorised access.
Confidentiality of Data
- Make certain that customer data is exclusively utilised for the purposes for which it is collected and permitted.
- Do not disclose client data to third parties without the customer’s authorisation.
Data Integrity
- Ensure that customer data is accurate and comprehensive through the adoption of appropriate measures.
- Perform data validation prior to its transfer between systems.
Advantages Of Integrating the CBS With the FSCS SCV Reporting Tool
- Automated Data Extraction: Replaces manual data extraction, which is time-consuming and error prone.
- Data Orchestration and Fulfilment: Conveniently import the necessary data and identify the individuals and entities that need to be reported, including exclusion, effectiveness, and completeness reporting.
- Consistent Data Formats: Guarantees that data is conveyed in a consistent format, which facilitates its processing and analysis.
- Enhanced Efficiency and Reduced Reporting Burden: Simplifies the SCV reporting process and minimises the time and resources necessary to produce reports.
- Improved Data Quality: Decreases the likelihood of errors and inconsistencies in the data utilised for SCV reporting.
Leading the Data Journey for SCV Reporting
The data collection and reporting process can be substantially streamlined by integrating a Core Banking System with a SCV reporting tool. Let us dissect the primary phases of this journey
Data Collection
- The basis of precise SCV reporting is high-quality data. Data is automatically extracted from pertinent fields within the primary banking system through CBS integration.
- This prevents the manual, error-prone process of data collection.
- Specific data elements, including customer information, account details, transaction history, and investment holdings, can be extracted by configuring the system.
Data Cleansing
- Missing values, errors, or inconsistencies are frequently present in the extracted data.
- The cleansing procedure entails the identification and resolution of these issues.
- This involves the standardisation of data formats, the completion of missing data points, and fixing erroneous information.
- Data reliability and integrity are guaranteed by an effective data cleansing process.
Structure & Enrich
- After being cleansed, the data is organised in accordance with the specific requirements of SCV reporting.
- This includes converting raw data into a format readily usable by the reporting tool.
- Furthermore, data enrichment can be accomplished by incorporating appropriate context or calculations.
- For instance, incorporating demographic data into customer data or computing investment returns.
Validation
- The validation of data is a crucial process that guarantees its accuracy and comprehensiveness.
- This process entails the comparison of the data with the third-party databases.
- It assists in the identification of anomalies, outliers, and inconsistencies that could potentially affect the report’s reliability.
- Additionally, involves the comparison of current data with historical data to identify trends or patterns.
Data Audit Trail
- It is imperative to preserve a transparent audit trail to facilitate regulatory compliance and troubleshooting.
- It tracks the data’s journey from extraction to reporting, including the modifications made, the person who made them, and the time stamp.
- Audit trails offer transparency, accountability, and the capacity to trace data back to its origin.
Engaging with Reported Data
- The principal goal of SCV reporting is to offer actionable insights.
- The reported data is readily accessible, analysed, and utilised by users of a well-integrated system.
- Interactive dashboards, visualisations, and reporting tools can be used to present data in a more user-friendly fashion.
- Consequently, stakeholders can make well-informed decisions based on current and precise information.
The Power of Macro Global's FSCS SCV Products
Macro Global is known for its innovative solutions in the realm of FSCS SCV reporting. The two flagship products, SCV Forza and SCV Alliance, stand out for their advanced features and capabilities in facilitating efficient and compliant SCV reporting for financial institutions.
SCV Forza:
- This product is designed as an FSCS SCV Automation Platform, focusing on streamlining and automating the regulatory reporting process.
- SCV Forza offers a range of features such as automated data aggregation, intelligent data integration, and precise SCV reporting generation.
- It enables users to efficiently manage account segregations, prevent data duplication, and produce accurate reports that meet FSCS requirements.
SCV Alliance:
- Positioned as an FSCS SCV Audit Platform, SCV Alliance provides a comprehensive solution for ensuring compliance and data accuracy in SCV reporting.
- With over 175 well-classified audit checkpoints, this platform can automatically validate and comply with FSCS requirements.
- It offers functionalities for data mining, cleansing, enrichment, and reconciliation to address data-related issues effectively.
Macro Global’s solutions are deeply integrated with CBS to ensure that data is extracted, cleansed, structured, and validated seamlessly. This integration enables efficient data processing and reporting, while maintaining accuracy and compliance throughout the entire SCV reporting journey.
By leveraging CBS integration, Macro Global’s solutions enable financial institutions to automate their FSCS SCV reporting, minimise data inconsistencies, and ensure adherence to FSCS regulatory requirements. This not only improves operational efficiency but also provides peace of mind by ensuring accurate and secure FSCS SCV reporting.
The robust features and capabilities of these solutions make them indispensable tools for institutions looking to navigate the complexities of SCV reporting with ease and confidence.
Revolutionise your FSCS SCV reporting. Discover how Macro Global’s integrated solutions can transform your data into actionable insights. Contact us today
Related Posts
FSCS SCV Effectiveness Reporting: Your Complete Checklist
The Compensation Scheme is essential for protecting consumers' interests. Financial institutions must provide comprehensive information regarding their Single Customer View systems, marking eligible...
AI Lab Initiative: The FCA’s Blueprint for a Smarter Future
Financial services innovation has advanced under the Financial Conduct Authority in the past decade. The FCA has established regulatory sandboxes, innovation hubs, and unmatched support for fintech...
