Regulatory Technology

Key FSCS SCV Compliance Challenges Include:

• Fragmented customer and account data
  Customer and account information distributed across multiple core banking systems, product platforms, and legacy applications limits the ability to form a consistent Single Customer View. Fragmentation increases aggregation risk and creates inconsistencies that are difficult to reconcile under audit scrutiny.
• Data lineage and traceability weaknesses
  Firms are frequently unable to clearly demonstrate how SCV outputs are derived from underlying source systems. Gaps in lineage documentation and transformation logic reduce confidence in reported balances, eligibility outcomes, and exclusions during review. 
• Inconsistent validation across reporting cycles
  Validation rules may exist but are often applied differently across teams, environments, or reporting cycles. This leads to variations in SCV outcomes between submissions and raises questions about control consistency. 
• Inconsistent interpretation of SCV rules across teams
  Differences in how regulatory requirements and validation thresholds are interpreted across compliance, data, and operations teams result in conflicting outputs and increased remediation effort. 
• Unreconciled data sources and aggregation logic
  Inadequate reconciliation between source systems, aggregation logic, and SCV outputs leads to unexplained variances that complicate regulatory explanation. 
• Manual remediation under regulatory timelines
  Time-bound FSCS requests often force teams to rely on spreadsheets and ad hoc fixes, increasing operational risk and weakening audit defensibility. 
• Insufficient audit evidence for review
  Firms may describe how issues were addressed but lack structured evidence showing when issues were identified, assessed, and resolved. 
• Absence of a repeatable governance cycle
  Without a formal review, approval, remediation, and re-testing cycle, the same weaknesses reappear across audits, reducing regulatory confidence.