Cloud-based platform ensures integrity across credit, market, operational and liquidity risk data
1 February 2021, London UK — Data integrity and reconciliation company Duco today launches its intelligent cloud-based platform for the risk market. Duco’s platform enables financial institutions to drastically reduce the time and complexity involved in current error-prone manual and legacy data integrity checks. The Duco platform offers a step-change in agility, flexibility and accuracy, to enable financial institutions to rapidly and cost-effectively create unified controls to ensure risk data integrity.
Duco’s automated software works alongside existing data systems, ensuring integrity across credit, market, operational and liquidity risk data. The agile risk platform works quickly to save time and money whilst ensuring risk modelling is always based on accurate data.
With large data sets, and multiple formats from multiple sources, risk data is complex and challenging to manage, as well as being strictly regulated. Banks and other financial institutions are under intense pressure to ensure their risk data is clean, accurate, auditable and properly managed.
Christian Nentwich, CEO, Duco, said: “Many risk teams will be using in-house built systems, legacy technology or manual workarounds to deal with the challenge of data integrity. Using this kind of piecemeal approach is expensive, difficult to manage and does not afford teams full oversight over the data integrity process. Duco’s model represents a step-change in agility and flexibility, enabling teams to get robust controls in place quickly and to be certain that their risk modelling is based on accurate data.”
“Having spoken to individuals and analysts at various levels within financial institutions, it became clear that a flexible, scalable platform that can work seamlessly with existing systems, yet provide the data integrity and reconciliation needed, was extremely appealing. The beauty of our platform is that financial institutions can use it to reconcile any kind of data, across risk and other departments — and because it’s cloud-based, it can be up and running within 24 hours and delivering real results within days.”
Risk data is becoming increasingly subject to rigorous regulation. Putting in place robust automated processes to ensure accuracy and data integrity is a crucial consideration for risk teams. Various regulatory frameworks, such as BCBS 239 (2016), have been introduced to ensure financial institutions are completing the necessary measures to check, reconcile and manage their data sets in this space.
According to a BIS report in 2020, no financial institution is yet deemed fully compliant with BCBS 239 risk principles. The report stated that banks need to devise ‘comprehensive solutions to address data quality issues rather than seeking a fix via more tactical or ad-hoc solutions.’
Duco’s software-as-a-service (SaaS) can be applied without financial institutions needing to make significant changes to their current IT infrastructure, and it can be fully live within 24 hours, enabling risk teams to move quickly from part-manual to fully automated controls. The platform then normalises, enriches and reconciles critical data elements quickly, ensuring risk models are based on accurate data sets.
Christian Nentwich adds: “We know that for risk managers and analysts, the pain and pressure of audits and governance can be significant, adding to an already demanding climate. What our solution offers the risk market is a fast and simple way to comply with these regulatory requirements, without any need to completely overhaul IT systems and ways of working.”