European banks will be spending $1.7 billion on measurement, analysis, and reporting systems by 206, as they grapple with an almost overwhelming number of new regulations and supervisory guidelines, such as Basel II and CAD3. Or so say consultants Celent in a new report.
The report, entitled “Responding to a Dynamic Regulatory Environment: IT Evolves to Support European Regulatory Reporting,” examines the history of regulatory changes in Europe and beyond, and discuss how the latest batch of changes are affecting existing technology architectures and strategies at the world’s financial institutions.
Celent says that financial institutions need to accept that supervisory rules will remain in a state of continuous flux as new financial and risk management best practices are adopted and disseminated globally. “Banks therefore need to keep their audit and compliance processes and related systems flexible to meet the growing demand for information,” it says. “The growing number of technology solutions will require banks to find a vendor that can truly act as a partner.”
“Solution providers are rapidly adding on functionality or partnering with other vendors and system integrators in order to meet the ever-growing requirements of the financial institution,” adds Michael Haney, a senior analyst at Celent and author of the report. “Firms are looking to leverage a common platform for risk management, performance measurement, customer analytics, and regulatory reporting,” continues Haney. Celent sees spending for such solutions continuing to grow and reach almost US$2 billion globally.
The report concludes with a case study of FRS Financial Analytics, which is being used to help a top European universal bank meet its analytics and reporting requirements.
The 38-page report includes 6 tables and 14 figures. A Table of Contents is available online.