Regulatory Reporting Platform Migration

SUMMARY

The client is a Private Banking and Asset Management institution headquartered in the Eurozone and present in 9 countries across Europe. The institution is under the direct supervision of the European Central Bank.

CUSTOMER GOALS

This project formed part of a wide finance transformation program including a full review of the organisation, processes and systems of the finance department. In this context Avantage Reply supported the delivery of a target operating model that fully respects the regulatory reporting stream. In particular, the objective was to migrate from the legacy regulatory reporting platform (WKFS OneSumX) to a target one (Sopra Compliance) and define the new reporting processes accordingly.

THE CHALLENGE

1. The set of reporting that needed to be simultaneously launched included local (Schema A) and European Banking Authority (“EBA”) reports (FinRep and CoRep) both on a solo (Local GAAP) and conso basis (IFRS);
2. The existing regulatory reporting processes were not standardised and not appropriately documented. In addition, manual corrections were performed to address data quality issues from front-office systems;
3. The data model of the Bank’s selected new regulatory reporting solution differed significantly from the legacy solution; and
4. The program also included the migration of the accounting engine (accounting integration) and the adoption of the new group chart of account creating thereby upstream dependencies.

APPROACH AND SOLUTION

The project started with an analysis of the initial operating model and the understanding of all the business requirements in order to build a whole new reporting architecture including setting up a DataMart and the data transformation needed to feed the reporting tool.

This was followed by the testing phase to check the relevance and completeness of the sourced data insuring that the new sourcing data models meet all the regulatory reporting specifications.

The third phase consisted in implementing and customising the new reporting tool in close collaboration with the supplier’s assistance service.

Finally, we assisted the client in making a smooth transition towards a deep change management in collaboration with the business team and supported the production of reportings during the first three monthly and quarterly submissions to the National Competent Authority.