Over the past decade, markets worldwide have grappled with low interest rates and near non‑existent growth. But recently, signs that the financial world has recovered from the financial crisis have begun to appear. Headwinds, however, remain. An increasing threat of protectionism, uncertainty around capital flows and exchange rate volatility mean efforts to better protect banks, taxpayers and investors from unnecessary risks are changing the industry.
The result has seen the scope and volume of regulation issued by regulators undergoing continuous growth, meaning managing regulatory requirements has become a top concern for financial institutions. Wolters Kluwer has become a leader in regtech solutions over the past decade, earning it the Central Banking FinTech & RegTech Global Award for Best Technology Solution For Regulatory Compliance.
The firm’s solution, OneSumX, consists of a suite of tools covering four areas: audit management; financial crime control; governance, risk and compliance; and regulatory reporting. The structure of its product means clients can choose the elements of the service they wish to integrate into their own systems. Wolters Kluwer is then able to put together a bespoke package of tools, which can be supplemented at a later date. Such an approach should increase organisational profitability, efficiency and growth, according to the company.
Wolters Kluwer’s regulatory reporting tool compiles a firm’s data into a single source to ensure consistency, reconciliation and accuracy. A recent add‑on to the product provides access to the firm’s Regulatory Update Service – which is maintained by experts that actively monitor the release and update of regulation in approximately 50 countries. These are tagged and loaded onto a central database that can be accessed by clients. The tool organises this data in a way that allows firms to drill up and down into underlying data to conduct variance analysis. The system also provides a proof of quality for the data and identifies errors during analysis. A data dashboard allows clients to visualise their data in a number of formats and provides a new, instant way of visualising a firm’s financial reporting status.
Wolters Kluwer has also recently launched its Business Analytics Solutions suite. Its services can now run from quick answers on relatively simple, single ‘silo’ questions to more holistic views of the effects on risk, return, liquidity and capital adequacy.
The success of Wolters Kluwer’s products can be observed through its growing client base, and its recent signing of a major deal with ABN Amro to provide an integrated finance, risk and regulatory reporting software solution. This is part of ABN Amro’s Finance and Risk Architecture Alignment Initiative, which aims to better meet requests from regulatory bodies for ever-more granular data within shorter timelines.