Addressing the complexities of the regulatory environment

For each regulatory change, firms go through the same process of seeking external interpretation, carrying out internal analysis, and then sourcing and processing data through their individual data models and systems – a highly intensive process requiring large investments of time and resource.

It is clear a new information value chain is needed for reporting which helps to increase efficiency of supervisory processes, minimise risk, allocate resources effectively and improve the basis for decision-making by higher transparency and faster availability of data.

UKRep was designed as a central interface between the banks and the financial regulators, using Regnology's Abacus component at its core. The solution replaces the template-based reporting method with an “input-based approach” based on data cubes.

The Abacus engine transforms micro data related to single contracts or deals like loans, deposits and securities and transforms them into "basic cubes" enriched with additional attributed. The required reports are then generated as multi-dimensional data cubes referred to as "smart cubes". Those smart cubes are then analyzed, signed off and remitted to the regulator.

UKRep is able to deal with growing regulatory demands in a fully industrialized fashion and provides the opportunity to significantly reduce regulatory ad-hoc requests from the regulators through the re-use of existing data in the cubes.

To further enhance this solution, semantic technology was introduced allowing the team to create models of the regulation, the reports and the banks' data, and to then link these models together.  The semantic models are designed to be executable, enabling the team to run queries and to use them to rapidly respond to regulatory change through the auto-generation of various artefacts.