Transforming data collection from the UK financial sector

Transformation Plan 

On 23 February 2021, we published ‘Transforming data collection from the UK financial sector: a plan for 2021 and beyond’ (Transformation Plan). 

Transforming data collection from the UK financial sector: a plan for 2021 and beyond

The Transformation Plan sets out our vision and approach to delivering improvements in data collection over the next decade. 

Our vision is that: “The Bank gets the data it needs to fulfil its mission, at the lowest possible cost to industry.”

Central to achieving our vision are three key reforms:

a. Defining and adopting common data standards that identify and describe data in a consistent way throughout the financial sector. These common standards should be open and accessible for use by all who need them. We think their adoption will bring benefits well beyond reporting.
b. Modernising reporting instructions to improve how our reporting instructions are written, interpreted and implemented. There are a range of steps we think this will involve, from setting up better Q&A processes to potentially rewriting our instructions as code.
c. Integrating reporting to move to a more streamlined, efficient approach to data collection. This reform includes making data collection more consistent across domains, sectors and jurisdictions, and designing each step in the data collection process with the end-to-end process in mind. 

News release

Our joint transformation programme

To help out carry out these reforms, we are setting up a work joint programme with the FCA and industry. During the first phase of the work programme, that will run until early 2023, we will be designing the future of data collection, before rolling out elements of those designs for our three phase one use cases:

• ‘Quarterly statistical derivatives return’,
• ‘Commercial real estate (CRE) database’, and;
• ‘Liquidity metrics monitoring (LMM) tool’.

We are interested in speaking to individuals and organisations who can work with us as part of our transformation programme. This includes regulated firms, industry bodies, specialist third-party providers, professional advisors, standards bodies and other regulators.

We invite anyone interested in talking to us about data collection, or that wants to get involved in our transformation programme to email: DatacollectionDP@bankofengland.co.uk. 

Alongside, the joint transformation programme, we are working on internal improvements to data collection and collaborating with on-going data collection change projects. This includes working with colleagues in the PRA on relevant regulatory reporting initiatives.

Nominations for the work programme

We invite reporting firms of all sizes (and from all sectors) as well as industry and trade bodies, who wish to participate in the joint work programme, to complete our form by COB Tuesday 15 June.

The terms of reference for the governing and delivery groups clarify the various roles available, and what will be expected of you. We will apply our selection criteria as we review all nominations.

Aligning with other initiatives

We also recognise our reform agenda overlaps with other private and public initiatives looking to make similar changes, particularly on the topic of common data standards. We are keen to coordinate and align with those initiatives with similar goals. If you are working on a project with relevance to our reform agenda, we would like to hear from you. To do so please contact us at: DatacollectionDP@bankofengland.co.uk. 

Data Collection Review

The transformation plan was developed as part of the Data Collection Review. This was a commitment the Bank made in its response to recommendations in the Future of Finance report, published in June 2019. The review sought ways “to decrease the burden on industry and to increase the timeliness and effectiveness of data in supporting supervisory judgements”.

As part of that review we published the discussion paper (DP) on Transforming data collection from the UK financial sector. The discussion paper and review findings drew on ideas explored in the Future of Finance report and the pilot on digital regulatory reporting (DRR).

The Bank hosted a webinar on 29 January 2020 that covered the main aspects of the Discussion Paper and offered the opportunity to ask questions. If have any questions on this or related subjects covered by the Discussion Paper please contact: DatacollectionDP@bankofengland.co.uk.

Transforming data collection from the UK financial sector: Discussion Paper

Press release