INDUSTRY REPORT
challenge. For many banks, only radical surgery will satisfy all these
stakeholders – few banks today have a complete answer.
DATA AND REPORTING
Banks face three major challenges around data management. They need
to hold and use the right data to get much closer to their customers. They
have to meet the wide-ranging and exponential increases in demands
from regulators and others for reporting and disclosures. And they
need to respond to supervisory concerns that banks do not have the
right data, systems and IT architecture to enable them to understand,
aggregate and disaggregate, and manage their risks effectively.
Meanwhile, banks also need to address the new and unforeseeable
risks in data privacy and cybercrime, conflicting national laws and the
impact of retrospective investigations in an environment where vast
amounts of data are indefinitely available.
Key to these challenges are increasing the maturity of data
analytics capabilities; a clear understanding of the ownership, roles
and responsibilities for data management (including retention and
rationalisation); a clear plan to attack core data quality issues; and the
implementation of more flexible technology solutions with greater
sharing/re-use and better handling of unstructured data.
GOVERNANCE AND RISK
The financial crisis itself, and the problems and challenges discussed
above, point to a need to upgrade significantly the governance
and risk management of banks. Much work is already under
way on this, but much more needs to be done. As banks get to
grips with their business strategy, risk appetite, risk culture and
management, they will need radically different management
information that only significant investments in core and
critical systems, as well as emerging analytic technologies, will
provide.
This article is extracted from the Europe, Middle East & Africa edition
of KPMG’s report Evolving Banking Regulation 2014. The full report
is available at kpmg.com/za.
Edition 9 BANKER SA
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