The joint transformation programme is taking a use case approach in this work to research, design and test solutions to address the issues the regulators and industry face.

Phase two use cases

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Phase two of the programme, which focused on four new use cases, began on 22 September 2022 and ran in parallel with the phase one implementation stage.

The four use cases were

  • Commercial Real Estate (CRE) data,
  • Retail Banking Business Model Data,
  • Incident, Outsourcing and Third Party Reporting,
  • Strategic Review of Prudential Data Collections 

All four use cases are in the 'discovery and design' stage. 

Details of each of the use cases can be found below. 

Commercial Real Estate (CRE) data

Commercial Real Estate (CRE) data is crucial for the Bank's ability to monitor prudential risk in the financial sector. 

Work on the use case during phase one confirmed our initial hypothesis about CRE data: it’s crucially important data, but the current data we get is a poor fit for our needs, fragmented, and burdensome to collect.

Throughout the discovery and design stage, the team have been conducting user research with firms. The insights gathered have informed the work for the use case and is helping us to develop a capability that may be used more widely to support the design of data collections in future.

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Retail Banking Business Model Data

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The FCA currently collect detailed product-level financial data across the range of retail banking products and segments. The data is critical to support the FCA’s competition objective and is reused by a variety of other stakeholders across the FCA. 

The data is currently collected ‘ad-hoc’, and hasn’t been designed in an integrated way to best meet the needs of all of the users of the data. 

The FCA want to move the collection to a regular collection and design a new integrated collection that minimises burden on firms.

Incident, Outsourcing and Third Party Reporting

Ensuring the operational resilience of the financial sector is a key priority for the Bank of England, PRA and FCA. However, operational resilience is currently an area where the regulators lack high quality consistent data. 

Policy makers are considering the development of new incident, outsourcing and third-party reporting policies so we can help ensure this critical data is delivered in a way that minimises the impact on firms.

At the same time, we think the use case will provide a chance to explore how best to deliver ‘event’ driven collections, where a new report is triggered when a given event occurs.

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Strategic Review of Prudential Data Collection

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For a prudential regulator, the prudential data the PRA and FCA get from firms is typically some of the most important data they receive. High level capital, liquidity, balance sheet and profitability metrics are a key indicator for how close a firm is to failure. 

On the flipside, these metrics are some of the most costly for firms to produce. 

We therefore think improving collection of prudential data will be critical for Transforming Data Collection (TDC) to be successful, with lots of opportunities to deliver value to firms and regulators. 

To find out the latest information about the work the programme is carrying out for the phase two use cases, check out our latest updates

Future of Transforming Data Collection

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The last two years have been a valuable exercise for us and firms. We have learnt a lot, delivered tangible value, and have a number of solutions that we are now taking forward to develop and scale.

TDC and the joint transformation programme is entering a new phase for both the Bank and FCA. In this new phase we will be prioritising implementation and transformation over learning and incremental delivery.

We will carry out this work as part of a refreshed strategy for transforming data collection we will look to publish in Q1 2024.