Data lineage an important issue in 2018

By Tony Zerucha, Managing Director of Bankless Times

In an ever-changing global regulatory environment, one certainty as we head into 2018 is the growing importance of establishing and maintaining data lineage, AxiomSL founder and CEO Alex Tsigutkin said.

Mr. Tsigutkin said AxiomSL initially focused on data management and governance, but as the company has grown they have added solutions in risk management, regulatory reporting and disclosure. That has allowed AxiomSL to become a global leader in regulatory and risk infrastructure, with more than 20 locations around the world.

“We provide full regulatory reporting coverage for banks, insurance brokers and asset managers,” Mr. Tsigutkin said.

And with banks needing to comply with everything from Comprehensive Capital Analyses and Reviews to MiFID II and Basel III to even new accounting standards, AxiomSL’s coverage needs to be extensive.

“Our technology is very robust and helps institutions deal with constant change in regulatory requirements on-premises and in the cloud,” he added.

Mr. Tsigutkin acknowledged that institutions are operating an uncertain climate, as speculation grows about increased regulation. For AxiomSL, when it comes to helping clients, it’s largely a technology play. Many big financial institutions have layers of legacy batch infrastructure and need to rely on integration tools. Unencumbered by that history, fin-techs find adjusting a much simpler process.

As 2018 nears Singapore, Australia and Europe are three regions having to contend with new requirements, Mr. Tsigutkin said. AxiomSL’s technology is cloud-based and API-oriented so companies find it easy to integrate with their systems.

“Another reason fin-techs like using AxiomSL’s reg-tech capabilities are new trade and transfer requirements forcing institutions to transition into reg-tech performance capabilities,” Mr. Tsigutkin said. “This is something AxiomSL excels at.”

He explained that an important aspect of the technology is its ability to establish data lineage, so information related to a particular transaction type is clear, and comptrollers can analyze, verify and sign off on anything headed to regulators before submission. The more complex an institution’s systems are, the less its own executives trust the data they produce.

In July, AxiomSL released the results of a survey of 132 senior risk-level and regulatory executives in North America and Asia Pacific (APAC). More than half (53 per cent) of APAC respondents and 35 per cent don’t trust their own data accuracy, with data lineage concerns being the most cited reason in both regions. AxiomSL technology addresses this issue.

“There’s a high level of confidence to fin-techs to trust the data and for regulators looking at it it’s easy to verify and understand.”

This article was first featured in Bankless Times