The Prudential Regulation Authority has levied a fine of £57.4 million against a significant financial institution for non-compliance with depositor protection regulations. The fine was primarily due to mismarking eligible deposits and poor audit-control. This emphasises the extent of scrutiny that the FSCS and FCA provided.
Banks & FIs must strengthen their data audit and management practices to increase operational efficiency, protect against regulatory noncompliance, ensure robustness, and boost customer satisfaction.
The Single Customer View (SCV) arises as a solution to this issue. The term “Single Customer View” (SCV) represents a unified and consolidated perspective of all customer information, including personal information, behaviour, and transaction history, spanning various organisational systems and departments.
It assists financial institutions by facilitating fraud prevention, expediting compensation payout processes in the event of a bank failure, and providing a reliable view of customer deposits.
Importance of Automated SCV Reporting Solution
An automated SCV Reporting Solution, or Single Customer View Reporting Solution, holds immense importance for banks and financial institutions regarding FSCS compliance in the UK. Here’s why:
Ensuring FSCS Compliance
Regulatory Requirement:
FSCS mandates regulated firms to submit accurate and timely SCV reports, containing comprehensive data on all eligible deposits held by each customer. Failure to comply can lead to penalties and reputational damage.
Accurate Data & Timely Reporting:
An SCV solution automates data gathering, validation, and consolidation, minimising errors and ensuring adherence to reporting deadlines.
Additional Benefits
Improved Efficiency:
Manual data handling is time-consuming and prone to errors. Automation streamlines the process, freeing up resources for other tasks.Enhanced Risk Management:
A holistic view of customer relationships enables better identification and mitigation of potential risks, safeguarding both institution and depositors.Transparency & Accountability:
Accurate reporting fosters trust with regulators and reinforces stakeholder confidence in the financial system.Operational Savings:
Reduced manual effort and improved data quality lead to cost savings over time.
How is Customer Data is Validated effectively through an automated SCV reporting solution?
Customer data validation provides real-time validation, rectification, and enhancement of customer information, thereby furnishing an all-encompassing customer profile that can be leveraged to prevent fraudulent endeavours, optimise operational efficiencies, guarantee adherence to worldwide privacy regulations, increase customer communications, and more.
Customers can have their name, address, phone, email, and account information validated and updated against hundreds of reliable data sources in under a second. In addition to quality and confidence scores, which are valuable for making informed decisions, the following four-layered process incorporates additional crucial customer information.
- Data Mining
- Data Cleaning
- Data Enrichment
- Reconciliation
Data Mining
- This is the first step of Customer Data Validation which verifies and updates the accuracy of the customer’s primary data such as name, address, phone, email, and account number.
- Each aspect of the customer’s identity is instantaneously validated against legitimate global data sources to ensure that you are commencing with precise particulars prior to executing the subsequent phase of data cleansing.
- The goal is to guarantee complete, accurate, and consistent data from various sources and repositories to prevent errors during convergence.
- Following the dissection of data quality, data issues and solutions are identified and categorised according to risk-based factors.
Data Cleansing
- It involves removing inaccurate, outdated, and corrupt entries from the dataset.
- Deduplication logic efficiently eliminates duplicate data through the identification and linking of strings that contain dissimilar words.
- By streamlining disorganised data and minimising reporting errors, this method improves the value, consistency, and dependability of data held by an organisation.
- Ensures that the refined data set is free from errors and inconsistencies.
Data Enrichment
- Data enrichment is the process of augmenting missing or insufficient data points to improve the quality of the existing information.
- Ensuring adherence to regulatory requirements, the enrichment process places significant emphasis on compliance with standards established by the Financial Services Compensation Scheme (FSCS).
- The utilisation of the refined data to enhance reporting outcomes and adhere to regulatory requirements establishes a feedback mechanism that promotes ongoing progress.
- Clients review and approve data enrichment methods to ensure transparency and ownership of the enriched dataset.
Data Reconciliation
- Reconciliation is performed by comparing and validating data from different sources, such as the Core Banking Solution (CBS) and automation platforms like FSCS SCV Automation Platform, to ensure consistency and accuracy.
- This involves gathering relevant account transaction data, comparing the datasets, verifying those records from different sources match, addressing any discrepancies found, and producing reports to document the process and findings.
- Automation tools streamline this comparison process, reducing manual effort and the potential for errors, ultimately ensuring the accuracy and integrity of financial records.
Macro Global's SCV Powerhouse: Forza & Alliance Tackle Your Toughest Challenges
Achieving complete compliance with the Financial Services Compensation Scheme (FSCS) encompass the following:
- Conducting regular and up-to-date data audits to ensure compliance with strict data governance principles.
- Automating data cleansing and standardisation processes to eliminate inaccuracies.
- Enriching data to enhance customer understanding.
- Ensuring long-term compliance with regulatory guidelines.
Macro Global’s SCV Forza and SCV Alliance are specifically designed to address the above challenges and offer requisite solutions. Here is how they can tackle each of the mentioned challenges:
Balancing Legacy with Agility
Macro Global’s SCV solutions offer a well-architected and out-of-the-box data model and business service layer with improved loading capabilities and data integration. This addresses the challenges related to legacy system limitations, operational inefficiencies, and infrastructure complexities.
Transforming Fragmented Data to Seamless Insights
The SCV solutions include data remediation and enrichment processes that identify issues to reduce the risk of financial penalties, ensuring consistency and accuracy in data.
Overcoming Data Privacy & Protection Roadblocks
Macro Global’s FSCS SCV reporting solutions provide secured data handling and high-level data protection, addressing challenges related to protecting consumer data privacy and adhering to regulatory requirements for data security.
Mastering Data & Staying Compliant
The solutions support de-duplication and cleansing of records and can be integrated with a wide range of scenarios run against a rule set, thereby addressing challenges related to duplicate data and meeting regulatory compliance requirements.
Building a Foundation of Reliable Data
The SCV solutions offer risk-based reporting to understand and analyse data-related business risks, enabling informed decisions and accurate reporting.
Charting Your Course
Macro Global’s SCV solutions unify customer data across internal systems and capture each customer’s activities across all channels, thus addressing challenges related to operational readiness and customer engagement.
Want to know more about our SCV solutions? Contact us now
SCV Alliance
FSCS SCV Audit Platform
