EXL transforms regulatory reporting for a leading bank with Code Harbor™
The financial services industry operates in a highly regulated environment, where accuracy and transparency in data reporting are paramount. For one leading bank, managing its regulatory reporting became increasingly complex due to its dependence on legacy codes and an incomplete data taxonomy.
EXL embarked on a partnership with the institution to streamline these processes, providing a scalable and AI-driven solution that ensures compliance while optimizing reporting efficiency.
Challenge
The bank was grappling with inefficient regulatory reporting due to an incomplete data taxonomy. This led to key challenges, including:
- Data ambiguity: The inability to trace the origin and lineage of specific data points led to inaccuracies in reporting.
- Lack of Transparency: With minimal understanding of their legacy codebase and data workflows, identifying errors and gaps became a time-intensive task.
- Elevated compliance risks: These challenges increased the organization's exposure to regulatory penalties, further exacerbating the need for an efficient solution.
The financial institution sought not just a fix, but a robust system to improve compliance adherence and future-proof their reporting processes.
Solution
EXL deployed its proprietary Code Harbor™ platform, leveraging cutting-edge AI to transform the organization’s data lineage and governance approach comprehensively. Key features of the solution included:
1. Data lineage intelligence:
- Automated tracing of table and variable lineage throughout the codebase, offering detailed insights into data origins and transformations.
- Clear derivation logic documentation to ensure reliable tracing and interpretation.
2. Comprehensive data dictionaries:
- Standardized English descriptions and formats for all intermediate and final variables used across various codes.
- Detailed metadata mapping source tables and variables to enhance transparency.
3. Deep code insight:
- Exhaustive explanations of functions, libraries, and procedures used in client codes.
- Modular customizations to align outputs with the organization’s existing workflows and regulatory requirements.
EXL’s team also worked collaboratively with the client’s technical team to customize integrations, ensuring smooth and efficient implementation.
Results
The bank experienced transformational outcomes with EXL’s Code Harbor™ implementation:
- 70% faster identification of data lineage:
The AI-driven lineage mapping significantly sped up the process of tracing data origins, enabling greater transparency and faster error detection.
- Comprehensive regulatory reporting:
With enriched data taxonomy and detailed metadata, the bank could achieve thorough and precise compliance reporting.
- Improved compliance and risk mitigation:
With newfound accuracy in tracing and reporting, the institution successfully adhered to stringent regulatory standards, significantly reducing compliance risks.