A Wolters Kluwer survey has revealed that 76% of Singapore banks are in the ‘data gap analysis’ stage in their preparation for MAS 610/1003.
A survey of 30 banks in Singapore has revealed that up to 76% of institutions are still in the ‘data gap analysis’ stage in their preparation for new requirements under MAS 610/1003.
MAS 610/1003 represents an overhaul of of reporting requirements that will require a sharp increase in the granularity and frequency of data reporting, encompassing over 300,000 data points, up from the around 4,000 currently required.
It will apply to all banks in Singapore, including those that are foreign-owned, and takes effect on 1 October 2020. (MAS 610 is the notice for banks, MAS 1003 is the notice for merchant banks. MAS has recently proposed to consolidate regulation of merchant banks under the Banking Act.)
The survey, conducted by Wolters Kluwer, found that 16% of banks have advanced to the data loading / ETL (Extract Transform Load) creation stage, and 4% are in the process of setting up a solution.
Only a small percentage of early birds (4%) have either gone live or are in the UAT stage of their preparation, but according to Wolters Kluwer, “this is not really surprising, as the regulations are not due to go into effect until next year.”
While the October 2020 deadline is still some time off, banks still need to make sure preparations are on track, including updates to their infrastructure, to ensure the deadline is met.
“In line with global norms, regulators in APAC are placing greater emphasis on the qualitative aspect of report automation. It is no longer sufficient to just have the right answer; banks must also explain how the answer was derived,” said Wouter Delbaere, Director of Regulatory Reporting, APAC, for Wolters Kluwer’s Finance, Risk & Reporting business.
“Financial institutions need to demonstrate the quality of data and are increasingly discouraged from using manual processes in regulatory reporting and other important business functions.”
Among the top challenges cited by the banks surveyed, ‘data gap analysis’ is proving to be the most difficult. The second biggest challenge cited relates to ‘subject matter expertise’.
In last year’s survey, the top concern cited was ‘data management’, which came in third this year.