About Data Quality And Regulatory Compliance at FI - Shield

The Underestimated Data Completeness is Crucial for Your Compliance Efforts

Introduction Data is crucial to the modern economy, particularly when it comes to financial institutions (FIs). Their ability to store, access, and analyze massive amounts of data in an effective and efficient manner greatly adds to their competitive advantages. But data collection isn’t solely about that. FIs must also ensure that they are properly collecting and storing data in order to achieve regulatory compliance. Capturing and processing data to achieve “data completeness” means that they can show every action and its associated paperwork.

Severe fines for non-compliance A failure of data completeness can result in severe fines from global regulators ranging from tens of thousands up to millions of dollars for not properly capturing information in an effective manner. For example, in November 2020, Santander Investment Securities agreed to pay a fine of $150,000 to the United States Financial Industry Regulatory Authority (FINRA) for not capturing around 6 million emails for more than 100 employees over a five-year period.

Regulations vary, data requirements remain Ultimately, the reason why this data wasn’t gathered simply does not matter. Whether it’s willful wrongdoing or a bad line of code that’s been erroneously implemented, the problem comes down to a binary question: Have FIs got the correct data to report? If they have, it can be assessed by regulators.

If they haven’t, there’s a big problem.

Regulations differ depending on where you are around the world, and new regulations are added all the time.

How do we solve that To help companies stay on top of these requirements, and have the most up-to-date information to them at all times, Shield’s platform generates a Data Completeness Report for customers at the close of each day.

This includes both the end-of-day dump file with data sources such as Bloomberg, Thomson Reuters, Symphony, along with a comparison between the data source and the actual data imported into Shield. Shield also generates a list of all of the journaled emails made the previous day

Conclusion Data is one of the most valuable assets a modern business has at its disposal. But don’t let “value” turn into “cost” in the form of unwanted (and unnecessary) financial penalties. By employing the right tools, FIs need never worry about not having the right data at their fingertips to meet whatever regulatory demands are thrown at them.

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