As the financial world becomes accustomed to the new regulatory landscape, central banks are under more pressure than ever to ensure they maintain the financial stability of the banking system. Vast quantities of data are now received by regulators on a daily basis from those they supervise, but they are yet to fully tap into its potential.
Many central banks are still burdened by old legacy systems, which prevents them from getting the most out of their data. Quality is not always assured and the collection and analysis processes are often untimely. Technology has emerged as a way of streamlining central banks’ data processing power – reducing expenditures, operational burdens and time to market for new supervisory requirements.
At the forefront of this wave of innovation is BearingPoint, which has been working closely with central banks for 20 years to reshape their data management processes towards automated data handling. The firm has built a particularly strong reputation for understanding the data challenges inherent in today’s market, and can use technology to chart a means of tackling them.
The complexity of central banks’ systems means BearingPoint often undergoes a preliminary study or proof of concept in close co-operation with the regulator to understand the best approach to integrating its platform, Abacus360 – so named because it provides 360-degree risk-based supervision.
The platform provides an integrated solution for the collection, analysis and dissemination of supervisory and statistical data. Abacus’ goal is twofold: to promote the self‑service concept whereby third parties are paired with different designer components to create content in large parts through configuration; and to significantly improve performance through enhanced scalability.
The platform also complies with global regulatory requirements from the Basel Committee for Banking Supervision, the European Central Bank (ECB), the European Banking Authority, the European Insurance and Occupational Pensions Authority, the European Securities and Markets Authority and local regulators. The system is used by a number of central banks worldwide.
An example of the platform’s successful implementation is the ECB’s Insurance Statistics Project at one of Europe’s largest central banks. The central bank had to collect, aggregate and submit data for the ECB’s insurance statistics templates on a quarterly and annual basis. The bank chose BearingPoint’s Abacus360 solution, which was adapted to the bank’s needs to create processes with a high grade of automation. The central bank has been successfully delivering its quarterly reports since Solvency II’s go‑live date in May 2016 and annual reports with data from more than 300 insurers since May 2017.
Two other central banks in the European Union have also decided to use Abacus360 Regulator as part of their AnaCredit collection.