Regulatory reportings are compulsory for compliance. Additionally, the reporting scenarios and requirements have changed a lot over recent years. An IHS Markit (now a part of S&P Global) report points out that the majority of the industry now prefers third-party vendors for regulatory reporting rather than developing in-house solutions.
“Firms of all sizes are looking to streamline their reporting by seeking out vendor solutions that offer a one-stop-shop for all of their regulatory requirements,” said Ronen Kertis, the Head of Global Regulatory Reporting Solutions at IHS Markit.
The regtech company gathered input from 90 respondents in October 2021 for surveying the industry.
It found that 86 percent of the participants are using the services of a vendor in some way, while 60 percent are using vendors in combination with in-house solutions.
“Increasingly, large organizations with complex processes and legacy reporting structures are moving to a hybrid structure, outsourcing their reporting solution to vendors, while internal teams focus on strategic priorities,” Kertis added.
Reducing Errors
Moreover, the report pointed out that another key focus point of companies was the accuracy of reporting. As many as 93 percent of the respondents believe that accuracy is the most important factor in transaction reporting. They want to control reporting errors and increase accuracy.
Again, 84 percent of them believe that completeness is important, whereas 63 percent and 52 percent emphasize timeliness and control framework.
Further, improving reporting is still an element that is high on the agenda for the companies. Around 33 percent of the survey respondents made some changes in their regulatory reporting in 2021, but this number decreased from 65 percent in 2020.
Another biggest challenge for companies remained the selection of the right reporting solutions, IHS stressed.
“Firms considering a vendor solution need to be confident they can mitigate or reduce the chances of external mistakes and that their chosen vendor has the correct experience to reduce the pain points and risks of handling reporting in-house,” the report stated. “They also consider the risk of the vendor leaving the market, especially given the exits in the last 12 months.”
