Complying with new requirements
In addition, regulators and governments are also demanding ever deeper and faster insights into financial operations. By 2030, we predict that regulators will expect complete transparency to appropriate financial data.
In recent years, as well as preparing for the delayed Basel III accords, and the end of the London Interbank Offering Rate (IBOR), banks have also had to develop strategies for the General Data Protection Regulations (GDPR) and the Payment Services Directive 2 (PSD2).
Ramped-up regulation has created an ever more complex set of controls and systems that banks need to manage. Faced with old, siloed technologies, the finance function needs to consider how best to comply with these changes and strengthen its systems to cope with perennial legislative change.
By 2030, it’s likely that the sheer complexity of such compliance demands will be serviced by transparent, yet secure, industry-wide data models.
This standardization will reduce regulatory costs for banks and ensure that compliance standards are better understood and more transparent, leading to a higher level of public trust in the financial system. This is crucial – in Europe, just 36% of customers reported a high level of trust in their bank.