Featured Product

    EBA Publishes Report on Adoption of Big Data and Advanced Analytics

    January 13, 2020

    EBA published a report that addresses the key considerations in the development, implementation, and adoption of big data and advanced analytics in the banking sector. The report also covers the recent trends in big data and advanced analytics. The report highlights that a data-driven approach is emerging across the banking sector, affecting business strategies, risks, technology, and operations of banks. The report focuses on the big data and advanced analytics techniques and tools, such as machine learning, which is a subset of artificial intelligence; these tools go beyond traditional business intelligence to gain deeper insights, make predictions, or generate recommendations using various types of data from various sources.

    Through its ongoing interaction with the relevant stakeholders and by utilizing its innovation monitoring tools, EBA has observed a fast-growing interest in the use of big data and advanced analytics solutions, with two out of three EU credit institutions already having such solutions in production. All functions across institutions might benefit from the big data and advanced analytics applications, as they could improve existing services from an efficiency, productivity, and cost saving perspective or create new business opportunities. Most institutions are currently using simpler algorithms, leveraging on their core banking data. However, the current landscape can evolve at a rapid pace in the next few years.

    The report identifies data management, technological infrastructure, analytics methodology, and organization and governance as the four key pillars for the development, implementation, and adoption of big data and advanced analytics. The report finds that the roll-out of  big data and advanced analytics affects issues around trustworthiness and notes a number of fundamental trust elements that need to be properly and sufficiently addressed and these cut across the four key pillars. Efforts to ensure that artificial intelligence/machine solutions built by institutions respect these trust elements could have implications for all the key pillars. These trust elements are ethics, explainability and interpretability, fairness and avoidance of bias, traceability and auditability, data protection, data quality, security, and consumer protection. EBA is of the view that additional efforts are needed to ensure that big data and advanced analytics solutions respect and integrate these “elements of trust.” Toward meeting this objective, a risk-based approach could apply on certain “elements of trust,” depending on the impact of each big data and advanced analytics application.

    Going forward, EBA will continue to observe (taking into account other work being done by ESAs and work being done in other international fora) and consider the pace of evolution of big data and advanced analytics in financial services (in line with its FinTech Roadmap). Where appropriate, EBA will accompany this work with opinions and/or proposals for guidelines to achieve a coordinated approach to the regulatory and supervisory treatment of artificial intelligence and big data and advanced analytics activities.

     

    Related Links

    Keywords: Europe, EU, Banking, Big Data, Advanced Analytics, Fintech, Machine Learning, Artificial Intelligence, Fintech Roadmap, EBA

    Related Articles
    News

    EC Publishes Regulations Supplementing Investment Firms Directive

    The European Commission (EC) published three Delegated Regulations (2021/2153, 2021/2154, and 2021/2155) to supplement the Investment Firms Directive (IFD or Directive 2019/2034).

    December 07, 2021 WebPage Regulatory News
    News

    FSB Report Examines Trends in Non-Bank Intermediation in Americas

    The Financial Stability Board (FSB) published a report that presents results of the sixth non-bank financial intermediation monitoring exercise in the Americas.

    December 06, 2021 WebPage Regulatory News
    News

    BIS Discusses Regulatory Approach for Non-Bank Intermediation

    The Bank for International Settlements (BIS) published the December issue of the Quarterly Review, which analyzes the non-bank financial intermediation mechanisms that could undermine financial stability.

    December 06, 2021 WebPage Regulatory News
    News

    BoE Calls for Vendor Input for Data Collection Transformation Program

    The Bank of England (BoE) opened the Alternative Liquidity Facility, or ALF, for deposits from the participating UK-based Islamic banks for the first time.

    December 03, 2021 WebPage Regulatory News
    News

    APRA Sets LAC for D-SIBs, Proposes to Enhance Crisis Preparedness

    APRA issued a letter on the loss-absorbing capacity (LAC) requirements for domestic systemically important banks (D-SIBs) and published a discussion paper, along with the proposed the prudential standards on financial contingency planning (CPS 190) and resolution planning (CPS 900).

    December 02, 2021 WebPage Regulatory News
    News

    EBA Proposes Standards on Interest Rate Risk in the Banking Book

    The European Banking Authority (EBA) launched three consultations on technical aspects of the revised framework capturing interest rate risks for banking book (IRRBB) positions, with the comment period ending on April 04, 2022.

    December 02, 2021 WebPage Regulatory News
    News

    EC to Review Macro-Prudential Rules while ESRB Assesses Policy Stance

    The European Commission (EC) launched a call for evidence, until March 18, 2022, as part of a comprehensive review of the macro-prudential rules for the banking sector under the Capital Requirements Regulation (CRR) and Directive (CRD IV).

    December 01, 2021 WebPage Regulatory News
    News

    EBA Sets Out List of Banks for Mandatory Basel III Monitoring Exercise

    The European Banking Authority (EBA) published the sample of banks for the mandatory Basel III monitoring exercise, which will refer to the December 2021 data.

    December 01, 2021 WebPage Regulatory News
    News

    FED Revises Complex Institution Liquidity Monitoring Report for Banks

    The Board of Governors of the Federal Reserve System (FED) is adopting a proposal to revise and extend for three years the Complex Institution Liquidity Monitoring Report (FR 2052a) for banks.

    December 01, 2021 WebPage Regulatory News
    News

    FSB Sets Out Good Practices for Crisis Management Groups

    The Financial Stability Board (FSB) published a report that sets out good practices for crisis management groups.

    November 30, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7758