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FCA and Bank of England unveil plans for new Data Strategy
We’re excited to welcome Phil to the UK LendingMetrics team as a Senior Developer. With over 35 years of experience, Phil will be largely focussed on research and development for our mul- ti-award-winning Auto Decision Platform (ADP). A warm welcome
The Financial Conduct Authority (FCA) and the Bank of England have recent- ly announced their plans to enhance their data and analytics capabilities, through a new dynamic ‘Data Strategy’ . The institutions aim to use advanced automation techniques and analytics to better understand the market and ease the regulatory process. The FCA’s updated strategy includes a plan to become highly data-driven, in order to better predict, monitor and respond to regulatory issues. By invest- ing in new technology and using exter- nal data more, the FCA intends to utilise high-quality, granular data sources. This approachwill include using data science units in certain parts of the organisation and is linked to the FCA’s migration to a cloud-based IT infrastructure. Executive director of strategy and competition at the FCA, Christopher Woolard, said: “Advances in technolo- gy are changing the nature of the firms and markets we regulate. Our Data Strategy provides a clear path for us to ensure we have the necessary skills and processes in place to remain at the forefront of this change. A data-driven approach to regulation allows us to anticipate harms before they crystallise, better understand the effect on con- sumers of changing business models and to regulate an increasing number of firms efficiently and effectively.’
Similarly, the Bank of England intends to improve timeliness and effectiveness of its data collection. The Bank’s recent- ly published Discussion Paper explains how the organisation will attempt to combat the issues facing their current data collection system with a number of potential solutions, which acts in response to Huw van Steenis’ Future of Finance report. In the report, Huw van Steenis suggests that the Bank is falling behind and recommends that they develop a new digital data strategy. The FCA and the Bank of England, along with seven other regulated firms, have jointly published a Viability Assessment report which outlines the potential of Digital Regulatory Reporting (DRR). This could allow firms to automatically provide data when requested by the reg- ulators, which will ease the process of providing said data by reducing the cost of collection and improving quality. The shift to a more digital landscape would require firms to automatically supply data in digital format and the FCA and the Bank of England are committed to jointly create common data standards and review the legal implications that could arise from reporting using code. The pair also committed to working together on collaborating closely with one another regarding future phases.
Senior Developer Phil Talbot
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06 | Metrics Monthly
January 2020 | AU Edition
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