Building an ecosystem uniting Regulators and the Regulated

This panel discussion delves into the silos in regulatory reporting and compliance within the financial industry. Panelists provide insights into the fragmentation of regulatory frameworks, the communication gaps between regulators and regulated entities, and the sluggish pace of regulatory processes. They stress the importance of fostering collaboration and innovation to dismantle these silos.

The discussion also explores potential solutions, such as public-private partnerships, enhanced data standards, and streamlined processes to improve efficiency and effectiveness in regulatory compliance.

Key takeaways from the panel include:

Regulatory frameworks are fragmented, with numerous reporting obligations and varying interpretations, making compliance challenging for financial institutions.
Significant gaps exist between regulators and regulated entities, impacting how regulations are set and how the industry responds to supervision.
Starting small with projects, fostering a culture of innovation, and having an appetite for risk are crucial for breaking down silos and improving regulatory processes.
Utilizing existing technologies, establishing public-private partnerships (PPPs), and adopting standards and open-source solutions can enhance efficiency and drive innovation.
Defining clear problem statements and enhancing data and technology literacy among stakeholders are essential for effective collaboration and achieving desired outcomes.

Breaking the silos: Building an industry ecosystem uniting Regulators and the Regulated

“Think of all the financial resources for reporting software and the existing risk management tools in the ecosystem. Why can't we partner with private sector entities to build tools that benefit us all? That’s a shared understanding of risk and improves communication between regulators and the regulated entities.”

Brandon Milhorn, President and CEO, Conference of State Bank Supervisors (CSBS)

"We should have 'know your data' (KYD) systems, where both supervisors and banks understand and speak the same language."

Michal Piechocki, Chair of Supervisory Board, BRAG

“I love the idea of a voluntary regulatory reporting program. If the value proposition is right and it provides value back to the participants, or they gain business value from the data exchange, it can scale back that process of needing to create all the regulations around it.”

Brennan Zubrick, VP of Research and Analytics, Conference of State Bank Supervisors (CSBS)

"We need to take more risks and reduce the scale of projects to foster innovation. It's crucial to share information between regulators and banks and raise expectations for all stakeholders, including vendors, banks, and regulators, to improve overall performance."

Linda Middleditch, CPO, Regnology