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Talking about Regulatory Reporting issues and KNIME benefits with Dávid Szemere – an expert in the financial sphere, who has over 15 years of experience in banking, ranging from capital markets to all finance functions gained in international banks. David cooperates with Datraction as a consultant at a private practice.

HELLO DÁVID, COULD YOU PROVIDE A SHORT OVERVIEW OF YOUR EXPERIENCE WITH THE FINANCIAL SPHERE?

I worked for over a decade in OTP Group in Central and Eastern Europe in roles rending from strategy to building up and heading finance divisions. Also, as a consultant working for Deloitte, I led teams that covered financial institutions in the region.

– DO YOU HAVE SOME EXPERIENCE RELATED TO REGULATORY REPORTING IN THE FINANCIAL INDUSTRY?

I have streamlined reporting processes in Ukraine, Russia, and Hungary.

– WHAT SPECIFIC REGULATORY REPORTING CHALLENGES HAVE BANKS ENCOUNTER?

The challenges are that they have limited resources when regulatory and business requirements change. It is not uncommon that bank managers need to prioritize the conflicting goals of what is logical for the business and the requirements in reporting.

– WHAT RISKS HAVE BANKS FACED WITHIN REGULATORY REPORTING?

The most important risks are reliability and timeliness. Given the constant changes, it can be a challenge to comply, which is mostly mitigated by dedicated finance people. Still, this exposes the organization to key people risk too.

We cannot expect reporting people to constantly put out fires.

– IN WHAT WAYS IS IT POSSIBLE TO ENSURE COMPLIANCE WITH CHANGING REGULATORY REQUIREMENTS AND STANDARDS?

By creating good, flexible, and auditable processes, wherein the finance function has some autonomy and may rely on its own resources to some extent.

– HOW HAS KNIME CONTRIBUTED TO STREAMLINING REGULATORY REPORTING PROCESSES?

Knime is a wonderful tool, as it helps do any reports, from various sources, and you do not need to be a programmer to do so.

KNIME streamlines regulatory reporting by offering an intuitive, open-source platform that simplifies the complexities of data handling. It enables banks and other organizations to visually design data workflows, integrating and cleansing data from diverse sources effortlessly. This reduces the need for extensive coding knowledge, making the preparation of detailed regulatory reports faster and more efficient.

KNIME’s modular data pipelining concept ensures that data is accurately processed and analyzed, helping banks or organizations meet stringent regulatory standards with greater precision and less manual intervention.

COULD YOU ELABORATE ON THE ROLE OF AUTOMATION IN REGULATORY REPORTING THROUGH KNIME?

With Knime, you may do any tasks that you do in Excel, but in a transparent auditable way, virtually without the size limits you have in Excel. And the great result is that you have a clear process, which is documented automatically within Knime. If there is an error, the process stops, and you see the exact date where it stopped. This is a very useful feature. As a CFO you can have the peace of mind that reports are done correctly.

Apart from that, because of the clear process, the time to prepare the reports is also reduced. You as a CFO may concentrate more on what is important for the business.

– TO SUMMARISE, WHAT KEY BENEFITS OF KNIME FOR REGULATORY REPORTING COMPARED TO WHAT BANKS MOSTLY USE?

Transparency, self-service, auditable results.

So it has ​​a good structure and at the same time it could be very flexible – it’s easier to change something in KNIME than in some of the other systems.

– HOW DOES KNIME HANDLE DATA INTEGRATION AND VALIDATION FOR REGULATORY REPORTING PURPOSES?

Data integration is handled within KNIME, it serves in some organizations as the ETL layer itself. Validation is really helped by the transparency the tool automatically gives.

– HOW DOES KNIME ASSIST IN DATA GOVERNANCE AND AUDITABILITY FOR REGULATORY REPORTING PURPOSES?

Because you can see the flow of data, and the calculations stop when you see errors, error handling becomes easier. This way the results are fully auditable.

– HOW CUSTOMIZABLE IS KNIME FOR ADAPTING TO UNIQUE REPORTING NEEDS OR REGULATORY FRAMEWORKS SPECIFIC TO ANY FINANCIAL ORGANIZATION?

KNIME is fully customisable, it can do anything and more than Excel can do, and you do not need a team of programmers to get reports or you do not have to wait for IT, which is a department with scarce resources usually.

– WHAT ARE SOME KEY AUTOMATION FEATURES OR WORKFLOWS YOU’VE IMPLEMENTED WITHIN DATRACTION PROJECTS?

I have implemented some client workflows for a special investigation of regulatory authorities when a large amount of data had to be presented in a consistent way for multiple counties and subsidiaries. KNIME made sure that the data was consistent, and the regulators were happy to see only one version of the truth. And ad hoc analysis was done from this database too.

– THANK YOU, DAVID, FOR SHARING YOUR EXPERIENCE AND THOUGHTS.

 

Contact us today for a free consultation and let us guide you in the seamless development and deployment of your data products.

Authors:

Olha Mikhavchuk, CMO, Datraction

Dávid Szemere, Consultant at private practice, Datraction

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