How can one ensure that data investments are reusable? In order to answer this question, one has to dig a little deeper and think the “data paradigm”. Can data be extracted once and reused multiple times? The benefits of this are immense. Savings in time and cost comes to mind as the same data need to be acquired multiple times from source systems.
Then comes the advantage of lower reconciliation costs for users and higher trust in data over a period of time. Liquidity reporting has many manifestations, depending on the guidelines at play. US itself has the LCFR/NSFR reporting and the FR2052a reporting both of which can leverage the same data foundation. Case for data reusability becomes all the more significant within the liquidity reporting space. The diagram below illustrates the data overlap across standard compliance and business reporting use cases.
Typical use cases would be assets and liabilities data can be reused for Financial Reporting, Capital Adequacy reporting, Asset quality and Concentration risk monitoring. Achieving this objective requires having a vision to put in place a “comprehensive data strategy” as opposed to adopting a “point solution approach”.