Data-driven insights start with large quantities of structured granular data. A key component of an Ellipse-type platform that would enable supervisors to be data-driven is a system for the digitally enabled collection and processing of granular and standardised data. This means that those data are:
Consistently understood by all stakeholders
Can be repurposed for different use cases
Represented in such a way that allow programmable code to reference those data to generate the reporting of regulatory metrics.
A number of regulatory authorities have been exploring different ways in which to replace template-based, aggregated regulatory reporting with granular data and digital regulatory reporting . The vision of regulatory reporting using granular data removes the need for multiple templates, allowing supervisors the opportunity to constantly re-purpose common data points for different analytical use cases.
However, granular reporting requires a common understanding by authorities and financial institutions of what those data are, so that financial institutions can map their operational data to a common “input” before the required reporting can be generated. Important initiatives around data standards, taxonomies and data models are being developed for this purpose . However, data standardisation more generally remains nascent globally.