Data, Technology and Skills The Australian securitisation industry is full of data loving professionals who are comfortable manipulating swathes of complex data, yet many are cautious about their ability to deal with sustainability related data. There are many practical reasons for caution. These include the need to begin collecting new types of data and understanding the technicalities of energy and emissions measurement. Many are concerned about the suitability of their systems to capture the data, the uncertainty about what data will be useful and meaningful as well as the task of backfilling data and missing data generally. Some believe that investment in technology will be necessary to manage and manipulate the new data required. Others feel the capture of additional data fields will do the trick. There is also a sense of positive anticipation about the potential for artificial intelligence as systems and technology progress. Despite the analytical skills inherent in the industry there is a belief that new roles will emerge as a direct result of the shift to sophisticated ESG reporting.
Data Participants are not just thinking about the collection of new forms of data in a passive way. There is a growing appreciation of the value of data. The term Big Data has been attributed to many people with earliest sightings of the phrase in the mid-to-late 1980s and more widespread use towards the end of the 20th century. It became a buzz word in the in the beginning of this century but somehow didn’t quite live up to its promise. There are several participants who feel that may be about to change. “In that FinTech space, when you look at newer players in market - not to suggest that banks or larger institutions don't have great data - I think there's been a real shift in thinking around the value of data. I think that prompts data to be considered as an absolute requirement in terms of getting as much data as you can in connection with everything you do upfront.” - Non Bank Issuer
23 Sustainability in Securitisation
“You know, the industry is moving quite firmly towards capturing as many data points as possible, wanting to better understand the user, but also to better be able to manage the risks and optimise the funding.” - Global Bank Equally, there are valid concerns about how quickly the industry can respond to the data requirements sustainability will generate. “If you think about how long it took to get loan level data post-GFC and the push across a number of securitisation markets to mirror what they saw in the US in terms of the loan level data availability it took many, many years, and for ESG, it's going to take just as long, if not longer.” - Global Investor
