Is your data as good as how it should be? Are your SCV output files fully compliant with FSCS standards?
In today’s world with rapidly changing scenarios within the finance marketplace sway regulatory, technological, and environmental reroutes. Henceforth, banks and other financial institutions find it tough to enhance the existing data by adding more relevant and exclusive information as per FSCS Regulatory Compliance guidelines. Regulators mandated to improve transparency in reporting to meet the goals of better and accurate data. Banks prefer to collect only the most significant pieces of information to keep their database concise and to maintain system performance.
Here is a case study stating how our FSCS SCV Audit & Automation Regulatory Compliance solution helps banks to identify and fill the gaps in their current data model to enrich the customer data for FSCS Regulatory Compliance standards.
Customer information is often inaccurate and hard to normalise as it internally aggregates and populating the database with incomplete data sets which will certainly be a challenge. The constant mutated Regulatory Compliance requirements imposed on banks and other financial institutions have become more stringent and makes it difficult for organisations to comply regulatory reporting with augmented data within simplified technological changes.
Our SMEs and business professionals conducted an operational and business readiness assessment to understand the current organizational data model and identified that there is a long leap between regulatory expectations and the current actual data within the CBS and other Staging Areas.
We recommended important and mandatory attributes for FSCS SCV reporting and add the data points to serve the purpose by filling in the gaps to enrich the data with adequate or accurate information. Our “SCV Forza – FSCS SCV Automation Platform” and “SCV Alliance – FSCS SCV Audit Platform” resolved the challenges and bottlenecks by filling in the missing attributes for the conventional outcome in order to enrich the data to comply with FSCS standards.
Data enrichment service helped our client to get refined quality data sets with below leading advantages:
Complete, valid, consistent, and accurate data. Enhanced the quality and richness of the data.
Comply with FSCS Regulatory reporting rulebook.
Improve productivity and reduce turnaround.
Generating insight from refined raw data and make it actionable.
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Here is the case study report of how our Data Governance Model Framework of FSCS SCV solution helped one of our clients who had data in silos and unable to generate fully compliance SCV files with their legacy reporting systems.
One of our clients, having multiple geographical footprints used the legacy reporting systems in regulatory reporting preparation which pulls data sources from multiple systems which prone to errors, omissions, and duplication due to unstructured data formats. With these substantial data silos, it was hard to fully comply with regulatory reporting. The massive volume of unstructured data poses new challenge for compliance teams with multiple records for the same person and it is difficult to derive accurate data and perform data unification.
We addressed the issue in 3 effective phases:
Our SMEs and business professionals conducted an operational and business readiness assessment to understand the current organizational data model and observed that the client required an integrated and comprehensive approach in order to understand the implications in their business operating model and assess quantitative benefits that could address in terms of data governance.
Practical recommendations were forwarded to the client provided with expertise to improve the data standards.
Our team integrated the client’s current organizational data model with our MG’s Data Governance framework using our industry leading “SCV Forza – FSCS SCV Automation Platform” and “SCV Alliance – FSCS SCV Audit Platform” for the consistent improvement of their Data Architecture, Master data management, Data warehousing by managing and addressing the client’s challenges by 360 degree.
Restored the client’s confidence by turning the PRA’s RED rating into GREEN with no penalties and restored immunity with continual business operations. Further Remediation program has been withdrawn by PRA.
Client had a greater insight into their data set now and strengthened their relationship with their customer for greater business benefits both tangible and intangible.
Our solution helps in addressing a long hauled systematic issue that redefined reporting which includes Regulatory Reporting Hub for the customer using single data point.
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Our SCV Alliance – FSCS SCV Audit Platform is a regulatory reporting solution designed and suitable for the financial institution to control, automate and flexible to meet ever-increasing regulatory requirements.
It is a complete and compliant FSCS SCV audit solution capable of automatically validating SCV data and comply with FSCS requirements to report on-demand in 24 hours.
Our FSCS SCV Audit report helps you identify inaccuracies and put processes in place to prevent penalties and ensure that your data is duplicate free, consistent and accurate.
Our SCV Alliance – FSCS SCV Audit Platform provides data insights and allows you to correctly identify the individuals and entities to be reported, including exclusion, effectiveness and completeness reports.
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To overcome the challenges that occur during FSCS SCV report submission and transform your PRA status to Green and retain it in every FSCS drill, you can rely on our matured flagship FSCS SCV auditing tool SCV Alliance – FSCS SCV Audit Platform.
Our FSCS SCV audit solution is designed to help you tackle the challenges around gaining a Single Customer View and develop data quality to promote efficiency in operational readiness and improve accuracy in FSCS SCV Regulatory reporting.
At Macro Global, we firmly believe that it’s simply a case of having the capability to build a consistent actionable dataset that is accurate. We help the firm to transform and unlock the data from a legacy application.
SCV Alliance – FSCS SCV Audit Platform Framework conducts Quality/Health check and Risk Taxonomy of your data to show the integrity and shortfalls which support to derive intended data lineage.
SCV Alliance – FSCS SCV Audit Platform interactive dashboard empowers to visualise the status and progress of static business reporting, highlighting the potential errors which give users the competence to drill down their data to any level of granularity. The system offers an intuitive workspace with the ability to track, monitor, remediate and scale up your data with minimal man-hours.
Our SCV Alliance – FSCS SCV Audit Platform Framework is staged in the cloud and on-premises with integrated business modules including a custom-made design to support high-level data enrichment with choice of multiple input file format and quality data outputs.
SCV Alliance as a data-driven compliance platform for member banks to effectuate the Regulatory requirement. Our data validation rule engine runs hundreds of dissections defined by PRA on your data before submission.
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“89% of companies still have challenges creating a single customer view resulting in
poor decision making due to poor customer insight and process inefficiencies. “
A single customer view is outreached when you can:
Without having a Single Customer View and real-time insights in place, organisations struggle to deliver renowned outcomes and may even result in dissatisfaction and even churn.
Decisions based on poor quality data are no more reliable and inaccurate. Cluttering up your database with poor quality data will impact on your ability to make informed judgments and decisions about the state and future of your business.
If you are planning on using your data to make informed decisions and forecast what you should be doing more of for future business growth, you need to make sure that your data is accurate, complete, and duplicate free.
“Single Customer View acts as the single golden source of truth”.
Comprehensive understanding of FSCS Regulatory compliance and mapping them with your customer records depends on the quality of underlying data, which is vital and prominent to achieve a consistent cognizant view.
Financial institutions are ramping up their governance, risk management, and compliance IT investments to avoid fines and prepare themselves for increasing regulatory demands. They are finding the current raft of new and impending rules and regulations by creating a more consistent and comprehensive view.
Having a single view of a customer data help banks understand what business they do with them, and more importantly, how to create better custom.
Our SCV Alliance – FSCS SCV Audit Platform is a regulatory reporting solution designed and suitable for the financial institution to control, automate and flexible to meet ever-increasing regulatory requirements. It is a complete and compliant solution capable of automatically validating and comply with FSCS requirements to report on-demand in 24 hours.
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As you all aware Regulatory Reporting landscape changes quite often with ever-changing metrics and KPI’s with constant demand from the authorities considering market dynamics & business changes which mandate a high level of adherence.
FSCS has announced changes in its SCV reporting specifications and Macro Global has analysed their possible impact across the reporting and other dependent data sets within SCV. In our view, these changes bring more clarity and enhancements to make things easier for both banks and FSCS.
Macro Global is already working on making those changes into our scheduled release in the next few weeks across all our clients. For further queries, write to us at 24x7support@macroglobal.co.uk with the subject as “SCV Changes 2021”.
FSCS is now accepting SCV output files with two more file formats where the bank can submit their SCV files using the two new formats. The New file formats are Excel & XML. These new File format specifications are explained on FSCS Single Customer View website.
FSCS accepts the following file types :
Accounts held by UK or Gibraltar branches are only protected by FSCS. This change affects the Account Branch Jurisdiction must be either GBR or GIB in the SCV or Exclusion view file.
Protection removed for EEA branches of UK deposit takers
From the end of the transition period (11 pm on 31 December 2020), deposits held in EEA branches of UK deposit takers are no longer be eligible for compensation by FSCS. The EEA include the 27 EU Member States along with Norway, Iceland and Liechtenstein.
Account Details
| Field Name | Field Description | Data Type | Max. Field Length | Example | Contents Mandatory? |
|---|---|---|---|---|---|
| Account Branch Jurisdiction | Eligible deposits must be held by UK or Gibraltar establishments. State “GBR” or “GIB”, as applicable. | Alpha | 3 | GBR | Yes |
If the reporting customer has a BFPO address, then the BFPO number should be present in Address line 6. Postcode must be present in the postcode field. The country field must be blank.
You can find government guidance on address formats for BFPOs here:
https://www.gov.uk/bfpo/how-to-address-bfpo-mail.
Ensure the BFPO number is in the final line of the address and leave the country field blank.
If an address has a BFPO postcode instead of a BFPO number, enter the BFPO postcode in the Postcode field.
If any of the reporting customer address is related to the care of address then the C/O must be present in the address line 1 or address line 2 as follows.
Alternatively, a specific account status code like “COA” can be assigned to the customer accounts who are having a care-of address.
These care of address customer accounts now can be reported in NFFSTP. If there is any reason you want those customers to be reported in NFFSTP then the bank can report those customer accounts in NFFSTP. If new status code(s) introduced for this purpose then those should be available in the account status code section of the effectiveness report.
If the reporting customer has a phone number(s) then those details should be in the Main phone number, Evening phone number or Mobile phone number fields. If the reporting customer has an email address, then it should be available in the email address field only.
The phone numbers should be formatted without spaces, hyphens or + signs. If it is an international number, then the phone number(s) should be prefixed with 00 instead of + sign.
FSCS has introduced a hierarchical order for the exclusion types where an account is supposed to be assigned with multiple exclusion types then the bank must select one from the hierarchy for that particular account.
Exclusion View File
Accounts cannot appear in both the SCV and Exclusions View file. Legally Disputed, Legally Dormant and Beneficiary classifications apply at an account level.
FSCS has now proposed to not report the same account in SCV and Exclusion view files. Customer may be present in SCV and Exclusion. But account should not exist in SCV and Exclusion view file.
FSCS has now instructed to put 001 in the Account Hold Indicator field for the Beneficiary account(s).
FSCS has now instructed, the bank must manage the legally disputed accounts at the account level, not At the customer level.
How should I treat cases where, for example, a depositor has 4 eligible accounts and one of these is under legal dispute?
If an account is a joint account and any one of the account holders is sanctioned then the other account holders who are not sanctioned should also be placed in the exclusion view file. If that particular non-sanctioned account holder has another account, then that particular account can be placed in the SCV file.
How should I treat a depositor who is has a joint account with a sanctioned individual?
As per the new FSCS guideline, the Legally Dormant accounts will be treated where all the account holder to that account should be placed in the exclusion view file.
How should I treat joint accounts if one account holder is Legally Dormant? For example, Mr. Smith has a sole account with Bank B. He also has a joint account with Mrs. Smith at Bank B, which hasn’t been used for over 15 years. Mrs. Smith hasn’t contacted Bank B in this time. How should Mrs Smith be treated?
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An ever evolving and more stringent FSCS regulatory compliance landscape with increased reporting and risk oversight, demands a sophisticated single customer view reporting tool for financial services firms around the globe.
It’s difficult for banking technology teams to keep up as banks are generating and analysing more customer data than ever before due to initiatives in global derivatives regulation.
Adding to the demands of FSCS regulatory compliance, many of the existing FSCS SCV regulations require changes to transaction formats to standardise processing and reporting.
“Banks are likely to spend more than $8 billion in the next six years to improve technology platforms to meet demands to beef up how they manage and report risks”. – Sungard
Financial institution’s data across the organisation in siloed applications and data stores and sharing data between different parts of their banking institution is difficult and requires manual effort every time data is shared.
Because of these data and organisational silos, FSCS regulatory compliance reporting usually entails transferring information from multiple systems into a centralised data repository, creating more data in the process.
The process of extracting, aggregating, standardising, and reconciling data for regulatory and compliance purposes increases the risk of poor data quality and inaccurate reporting, which can spell trouble for financial institutions.
Our SCV Alliance – FSCS SCV Audit solution helps you to identify inaccuracies and put processes in place to prevent penalties and ensure that your data is duplicate free, consistent and accurate. Our FSCS Single Customer View Audit and Automation solution provides data insights and allows you to correctly identify the individuals and entities to be reported, including exclusion, effectiveness and completeness reports.
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Without having a Single Customer View application and real-time insights in place, organisations struggle to deliver renown outcomes and may even result in dissatisfaction and even churn.
Let us look at the top 3 challenges and the resultant bottlenecks faced by the financial institutions.
This is first and topmost challenge that most of the businesses today have access to an unprecedented amount of customer data.
The absence of proper infrastructure is preventing banks from effectively managing the situation, in turn seriously affecting the performance of business-critical applications.
IT departments spend 60 to 90% of their budgets managing and maintaining older systems, leaving little left over for new initiatives.
Our FSCS SCV Audit & Automation solution helps you tackle the challenges around gaining a Single Customer View and develop data quality to promote efficiency in operational readiness and improve accuracy in FSCS SCV Regulatory reporting.
We will be able to help you in whatever the stage of your regulatory reporting programs and I am for sure you will not be disappointed rather surprised with our offerings and customer success stories.
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Macro Global is a UK registered specialist IT products and services company offering solutions to the Banks & Financial Institutions for the last two decades. Most trustable strategic technology partner for 25+ leading banks across the world and acquiring more customers every year through innovative and cost-saving solutions through strategic and effective consulting.