Meeting APRA Connect reporting standards: 5 ways financial institutions can see value

In September 2021, the Australian Prudential Regulatory Authority (APRA) will launch its new reporting solution APRA Connect. The new APRA Connect reporting standards will replace the current system Direct to APRA (D2A) although a dual-submission system will operate in the medium-term. 

While the Covid-19 pandemic prompted a six-month pause in the plans, overall, the impact of the virus has only underlined the need to implement new technologies and has accelerated digital transformation across the sector. 

APRA is moving toward standardised, machine-readable data models and away from aggregate to granular requests. It is no longer enough to simply submit data on time, your data must be explainable and high-quality.  

After winning a rigorous tender process, we worked closely with APRA to create their new solution which is known as APRA Connect. 

With direct involvement in creating the technology and in-depth knowledge of the implementation, we can provide unmatched support to entities as they prepare for the new APRA Connect reporting standards. 

1. Long-term cost efficiencies  

Investing in regulatory technology, commonly known as RegTech ahead of the go-live of APRA Connect reporting standards will help financial institutions realise cost benefits in the medium to long-term.  

Automating regulatory reporting processes eliminates manual effort in day-to-day reporting by automatically converting your Excel data to an APRA-ready submission file, reduces regulatory risk, and lowers your overall compliance costs. 

2. Reporting in hours not days 

 
Automating the way your organisation meets APRA Connect reporting standards means reporting gets done in hours rather than days. It gives employees back time, allowing them to focus on activities that add value to the business rather than spending their time manually processing data.  

This reduces the need to expand headcount. In recent years, financial institutions have coped with increased compliance requirements by hiring more staff, but this is an unsustainable approach.  

3. Better data with fewer errors 

For institutions using outdated solutions or even manual Excel files, implementing automated regulatory reporting solutions can also allow organisations to extract value from their data, make use of it and create actionable insight. 

With fewer human touchpoints and pre-validated data that ensures right-first-time submission, financial institutions are assured of significantly enhanced data quality. 

4. A bird's eye view of potential risk 

With high-quality data, financial institutions are empowered with insights into financial risk analysis, with the potential to spot potentially harmful patterns before they become a problem or easily see where something is amiss. 

Meeting the APRA Connect reporting standards will allow financial entities to easily carry out health checks to ensure their core ratios and other KPIs are within safe and stable boundaries. 

5. Operational insights 

Financial entities that automate their APRA Connect regulatory reporting will gain operational insights as well as risk-based insights. 

As regulatory data becomes more transparent, comparison with peers will become more straightforward. This will allow the public whose retirement funds are invested as well as fund managers to easily see which superannuation funds perform best. 

Armed with this knowledge, financial institutions will be able to make better strategic decisions about future investments. 

As financial entities learn to use the information that they glean from APRA Connect reporting standards effectively, compliance will become something that is no longer a burden, but a tool for insights and decision making. 

Our API-powered platform for regulatory reporting uses the same technology and rule engines as APRA, providing instant updates and APRA-ready submission file, ensuring compliance with the regulator.