Benchmarking and Governance Entity Data

Bank One
Bank Two
Bank ‘n’
Central Data Store
Silo One
Silo Two
Central Data Store
A V O X
P O O L
Collaboration – A Key SIBOS ‘06 Theme
“The collaborative space will become an imperative for the industry. There is no other way to continue to supply clients with good products at good price points.” Francesco Vanni d’Archirafi, CEO, global banking services EMEA, Citigroup “Competition versus collaboration has been the subject of a lot of discussion at Sibos. Banks that have traditionally done it all themselves are much more prepared to have conversations with other banks in various regions.” John Murphy, managing director, trade & transactions, ANZ Banking Group “The focus of the banks should be to achieve more together, which has been one of the central themes for Sibos this year. They must realise that if they don’t do it, someone else will – but they need to take collaboration beyond the current level.” N.G. Subramanian, vice president, banking practice, Tata Consultancy Services
Benchmarking and Governance Entity Data
Steve French, COO, Avox Limited
The Problem: Regulation and Poor Data
KYC AML Patriot Basel MIFID
1
The Solution
Appoint CDO’s Governance Data Centralisation
Reputable external source
Source ‘A’ Source ‘B’ Source ‘C’ 100 Golden Copy records 75% consistency
“My data is 75% accurate”
7
Data Vectors
FORMATTING 0% 100%
15
Data Coefficients
100% Populated
100% Formatted
100% De-Duplication
100% Accuracy
16
Data Coefficients
100% Populated
66 %
Worst ( .14)
100% Formatted Centralised Bank
Risk
Operations
Compliance
Other…
Hierarchies Netting etc
Hierarchies Netting etc
Hierarchies Netting etc
Hierarchies Netting etc
Why?
• Cheaper • Better Quality Data
POPULATION
66%
81%
97% 100%
0%
DE-DUPLICATION 10% 0%
80%
99% 100%
13
Data Vectors
FORMATTING 0% 35% 45% 95% 100%
POPULATION
66%
81%
97% 100%
0%
DE-DUPLICATION 10% 0%
AVOX has measured 38 of the largest 50 banks as defined by asset size The data is invariably worse than expected Average one third of records flawed (formats) Average one third of records substantively wrong
80%
99% 100%
ACCURACY
0%
100%
14
Data Vectors
FORMATTING 0% 35% 45% 95% 100%
POPULATION
66%
81%
97% 100%
0%
DE-DUPLICATION 10% 0%
80%
99% 100%
ACCURACY 58% 0% 78% 96% 100%
2
The Typical Bank
Risk
Operations
Compliance
‘n’
Hierarchies Netting etc
SSI’s
Patriot KYC AML
Other…
Core Fields
Name Legal Name Also Known As Name(s) Formerly Known As Name(s) Addresses Address Type (e.g. registered, physical, correspondence, HQ…) Country Country Code (two/three digit ISO) State/Province/Region/County State/Province/Region/County code (where applicable) City Postal Code Address (lines 1-4) Industry Codes Industry Code Type (SIC, NAIC …) Industry Code Industry Description Parent Information Ultimate Parent Immediate Parent Identifiers (partial list, subject to license) Business Registry ID Type Business Registry ID BIC Federal Tax ID Number FSA Firm Reference Number Dunn’s Number Exchange Name Exchange ID Other Third Party Identifiers Regulatory 15A6 Indicator FSA Classification Regulated By Deficient Jurisdiction FATF Indicator Legal Form Other Date of Registration Website URL
25
AVOX
A gl obalcom m uniy of fnanci i iutons w or ng t t i al nstt i ki oget her t devel o op accur e, tm el com pl e and st at i y, et andar zed busi di ness entt dat iy a.
100% De-Duplication
58 %
100% Accuracy
17
Data Coefficients
100% Populated 97%
Best ( .94)
66 %
Worst ( .14)
95% 100% Formatted
99% 35 % 10 % 100% De-Duplication
26
Thank You
Contacts:
Steve French, COO, Avox steve.french@ +44 20 7868 5076
22
Cent alsed D at I ’ Stl a Sio r i a: ts il l
Bank One
Risk Ops Other… Risk Ops
Bank Two
Other…
Central Data-Base
Central Data-Base
Central Data Team
Rules, Formats, Standards
58 %
96% 100% Accuracy
18
Data Stratification
19
Data Stratification
High Exposure Clients
Co-efficient = .83 Average = .76
Medium Exposure Clients
Co-efficient = .62 Average = .57
66%
81%
97% 100%
0%
11
Data Vectors