Banks, payment institutions, and other financial sector entities must send financial and non-financial information to supervisors. Each year, the scope of the required reports increases, and the structure of the reports becomes more complex. Moreover, in addition to the cyclical reports, financial market supervisors may request additional reports or make corrections to those already submitted.

At the same time, the working hours of reporting specialists are the same as before. Hence, it is becoming more popular to turn to mechanisms that automate and robotise obligatory reporting, which reduces manual work and minimise the risk of error.  

It is estimated that with well-defined processes and good data quality, the two mechanisms can handle up to 90% of the entire reporting process for an employee.

What exactly are automation and robotisation of the reporting process?

Automation of the reporting process involves writing scripts in the appropriate syntax (e.g., in the form of mappings or ETL processes based on SQL queries), which allow data to be extracted from various sources, transformed (recalculation, structural transformation, or aggregation), and integrated into the report. This eliminates initial manual work in the reporting process.

A more advanced mechanism is the robotisation of the reporting process. The system receives a predefined signal, such as when a complete data set is available for report preparation. It then autonomously starts robotic tools that carry out routine and repetitive tasks, replacing human labor according to the defined business process.

Automation and robotics can only partially eliminate the specialist's work from the reporting process. Human labor is redirected towards checking, verifying, and correcting reports before they are sent out or adjusting the process

‍The role of the preparer is, among other things, to detect and eliminate erroneous data. Sometimes, there may be a missing digit in the PESEL number; sometimes, there may be a minus sign next to an amount. Therefore, inputting data into the report is time-consuming and, contrary to what it may seem, it is difficult, especially in the case of extensive reporting.

With our many years of experience, we advise clients on where problems may arise. It is essential to remember that automation and robotics will never be a remedy for poor quality data; however, they can help indirectly in detecting irregularities. - explains Małgorzata Kawa, Senior Data Processor at FINGO Systems.

When do automation and robotisation of regulatory reporting make sense?

Automation and robotisation are typically resorted to by financial institutions that file daily reports, e.g., SInF, AML, and/or are obliged to complete reports with a very complex structure, e.g., EBA ITS or FINREP package.

These mechanisms are also helpful in organisations where the number of staff is insufficient to cope with the workload required to fulfill the reporting obligation on time.

Well-designed automation will collect data from many different systems. Hence, automation is an improvement for organisations that use several applications that do not exchange data.

Slightly more clients opt for automation in the case of registry reports, as these are much more extensive due to their detail and are also subject to many rules. A CESOP report, for example, requires verifying various conditions to determine whether a transaction is relevant, and only after this analysis can it be included in a reporting document. With the need to combine data from various sources to properly qualify millions of transactions, I can't imagine anyone doing this manually.” - says Małgorzata Kawa.

Who develops the scripts to implement robotisation and automation in FINGO Systems' reporting applications?  

Due to the speed and cost of implementation, automation, and robotisation processes are generally written by specialists from the implementation department at FINGO Systems in cooperation with specialists from the financial institution. Sometimes, it is also with other IT solution providers if the necessary data is picked up from their applications.

Sometimes, clients who have been using FINGO systems for years decide to develop and implement these mechanisms on their own, having previously taken advantage of the training offered by FINGO Systems.

Does the supervisor's update of reporting requirements affect automation and robotisation processes?

Some changes to the taxonomy affect pre-defined scripts and will, therefore, require changes. If the client has purchased a package including system maintenance from FINGO Systems, then it is up to the provider to implement the changes. If there is a requirement to report additional data, such as that was not previously reported, a functionality update will be required.  

In addition, the FINGO Systems team has the tools to monitor supervisor communications, which enables our team to stay abreast of changes in the market.

How to prepare for implementing automation and robotics into the reporting process?

It is worthwhile for the client to be prepared at the start of the project, i.e.:

• has the required data (sometimes it needs to obtain it from the IT solution providers it works with daily);
• has delegated the right people. On the one hand, they have the necessary knowledge (understanding their data and their specific reporting needs). On the other, they will feel responsible for the progress and timely implementation of the project according to the agreed timetable.

Automation and robotics in regulatory reporting - summary

Faced with increasing regulatory reporting requirements, financial institutions face the challenge of managing resources efficiently. Automation and robotisation of reporting processes enable a significant reduction in manual work and faster generation of correct reports in line with supervisor requirements.  

As a result, bonded institutions gain greater operational flexibility. In practice, this means better utilisation of staff potential, thanks to the ability to focus on more strategic tasks.  

Would you like to learn more about the possibility of automating and/or robotising reporting processes in aSISt, eON, or iON? Get in touch with us!