Transforming data collection

We are working with the FCA and industry to deliver our plan to transform data collection from the UK financial sector.

Transformation Plan

In 2020, we carried out a Data Collection review. The review aimed to understand what issues industry face in supplying us with the data, what issues we face with receiving and using it, and what collectively we needed to do to tackle those issues. At the end of the review, we published our views in ‘Transforming data collection from the UK financial sector: a plan for 2021 and beyond’ (Transformation Plan) on 23 February 2021.

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:

  1. 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.
  2. 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.
  3. 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.

Please visit the Data Collection Review publication page to find out more about the review.

We know delivery of our transformation plan will require initiatives both inside and outside the Bank. It will require changes to Bank processes and systems, as well as changes within firms . It will also require organisations to collaborate. This includes us working with the FCA and industry; as well as working with other authorities abroad. More information on the initiatives we are setting up with industry, and how we are engaging with external initiatives and bodies can be found below.

Our joint transformation programme

Central to our plan to deliver the reforms is our joint transformation programme. The programme will design and test solutions to address the issues we and industry face in today’s data collection process. The joint transformation programme officially kicked off at the beginning of July 2021.

Alongside Bank and FCA staff, the programme is made up of industry participants with a wide range of knowledge and experience drawn from across the financial sector. There are currently around ninety participants working across the programme. They participate in a variety of roles across the programmes delivery groups, and governance committees. The participants are drawn from a diverse set of around forty different organisations, representing financial firms of all shapes and sizes (including banks, building societies, insurers and trade bodies). Following a nominations process, participants were selected by us, alongside the FCA, in line with our selection criteria

There are still lots of opportunities to get involved with the joint work programme. If you would like to be involved with the governance or delivery of the programme, are currently working on a relevant initiative, or if you would like to find out more, please contact TDCSecretariat@bankofengland.co.uk.

Approach

The joint work programme is being run in line with the Government Digital Service’s industry-standard Service Design Approach (the SDA). This includes the use of Agile/Scrum project management techniques, and a focus on ‘human centric design’. 

We are running our programme in ‘Phases’ with each phase being made up of a number of use cases. Each use case will, in turn, pass through a ‘discovery and design’ stage, where we will explore issues and design solutions, and then an ‘implementation stage’, where we may roll out these solutions for use in production. A use case is a collection, set of collections or aspect of a data collection. 

Our current phase kicked off in July 2021. ‘Discovery and design’ for phase one use cases will end in March 2022. An ‘implementation’ stage, to be largely conducted outside the joint transformation programme, will run from July 2022 until Q2 2023.

Phase two of the programme, which will focus on new use cases, will begin in July 2022 and run in parallel with phase one. 

Phase one use cases

We have four use cases in scope of phase one (see latest news and updates for progress on each use case):

Reform the Quarterly statistical derivatives (DQ) return

The quarterly derivatives returns, submitted by 20-odd firms with liabilities over £10billion, summarise marked-to-market valuations of derivative positions at the end of each quarter. The data are primarily used by the ONS for national balance of payments statistics.

Deliver a commercial real estate (CRE) database

The CRE industry have a long running project looking to create a database on the CRE market. We hope delivery of this project will help us meet our reporting needs. Aligning with this project will allow us to develop common data standards in two core areas in the financial sector: loans and property. This in turn will help improve the quality of data in a market that is important to monitor for financial stability purposes.

Optimise the liquidity monitoring metrics (LMM) tool

The Prudential Regulatory Authority’s (PRA) LMM tool is an algorithm, published in Excel, that shows firms how the Bank calculates some key liquidity metrics using data defined by the PRA’s liquidity report PRA 110. Upgrading the tool provides an opportunity to understand how we might deliver ‘instructions as code’ – potentially a key component of a more flexible reporting process in future.

Maximising the value of RegData (FCA use case)

In June 2020, the FCA commenced a regular quarterly financial resilience survey for solo-regulated firms. This use case will focus on opportunities to improve data quality, increase transparency about how the data is analysed, and consider how to transition the survey into RegData. 

Governance and Delivery Groups

In order to work effectively with industry, the Bank and FCA have established a governance and delivery framework for the joint transformation programme. 

The work of the programme is carried out by three delivery groups: a core delivery team, a design advisory group and a user/product owner group. The programme is overseen by two committees: the Reporting Transformation Committee and the Data Standards Committee. 

A high level overview of the role of each committee and delivery group, along with information about members (where appropriate), and participating firms can be found below. Further information on the role of the groups can be found in the Terms of Reference for the Governance and Delivery Groups.

A list of participants, minutes of the committees, committee packs and any output created and published by the joint transformation programme will be published. 

  • Association of British Insurers
    AXA
    Bank of America
    Barclays
    Belmont Green
    BNY Mellon
    Building Societies Association 
    Cambridge & Counties Bank
    Clear Bank
    Coventry Building Society
    Credit Suisse
    Depository Trust & Clearing Corporation
    Deutsche Bank
    FIX Trading
    Goldman Sachs
    HSBC
    International Securities Lending Association
    International Swaps and Derivatives Association
    Investec Bank Plc
    JPMorgan
    Lloyds Banking Group
    London Metal Exchange
    Macquarie Group
    Metro Bank
    Mizuho International plc
    National House Building Council
    Nationwide Building Society  
    NatWest
    Phoenix Group
    Principality Building Society
    Rothesay
    RSA Group
    Santander
    Scotiabank
    TSB Bank
    UBS
    Virgin Money
    Wells Fargo London Branch

The joint transformation programme is currently considering ways to bring third party suppliers to reporting firms into the programme. Further details on this will be available later this year.

Reporting Transformation Committee

The Reporting Transformation Committee focuses on overseeing the design of solutions for parts of the reporting process where the Bank, FCA and reporting firms interact directly. This will cover aspects of modernising reporting instructions and creating a better integrated end-to-end reporting process. 

The committee will meet monthly and the minutes from each meeting will be published. 

  • Pardeep Bhatti, Metro Bank
    Paul Burleton, BNY Mellon
    Graham Cohen, BNY Mellon
    Jacqueline Davies, TSB Bank
    Richard Dunne, RSA Group
    Lee Fulmer, UBS
    Mark Hutchison, Scotiabank
    Mark Jones, Cambridge & Counties Bank
    Alexander Leggeat, Goldman Sachs
    Robert McBride, Lloyds Banking Group
    Ruaidhri McInerney, Macquarie Group
    Derek Paine, Mizuho International plc
    David Palmer-Lewis, Principality Building Society
    Kamal Patel, Barclays Group
    Robert Pengelly, Nationwide Building Society  
    Charles Resnick, Clear Bank
    Daniel Sadler, ABI
    Angel Serrano, Santander
    Simon Shapiro, HSBC
    Tammy Solomon, Investec Bank Plc
    Robert Thickett, Building Societies Association 
    Paul Thirtle, NatWest
    Andrew Turvey, Belmont Green
    Richard Walker-Smith, Bank of America

Data Standards Committee

The Data Standards Committee is a forum for stakeholders including reporting firms, trade bodies and relevant standard setting bodies to discuss issues and propose solutions in the area of data standards.

The committee will meet monthly and the minutes from each meeting will be published. 

  • Dawd Abdul Haque,  Deutsche Bank
    Ffion Ackland, Goldman Sachs
    Julian Batt, Bank of America
    Andrew Douglas, DTCC
    Rich Evans, FIX Trading
    Lee Fulmer, UBS
    Liz Henderson, NHBC
    David Holland, Coventry Building Society
    Paul Jones, Nationwide Building Society  
    Neil Kirkham, London Metal Exchange
    Caroline Lewis, Lloyds Banking Group
    Corinne Powley, Phoenix Group
    Lewis Reeder, BNY Mellon 
    David Shone, ISLA
    Ian Sloyan, ISDA
    Tammy Solomon, Investec Bank Plc
    Nicholas Steel, Barclays Group
    Emma Tan, JP Morgan
    Andrew Turvey, Belmont Green
    Richard Young, Chair of British Standards Institution Financial Services Committee (IST/12)

Core Delivery Group

The Core Delivery Group undertakes the various activities related to the work programme: understanding problems through user research, mapping and investigating possible solutions, and designing aspects of the solutions. 

Design Advisory Group

The Design Advisory Group supports the Core Delivery Group by reviewing the materials and artefacts produced, and participates in solution design workshops, where useful.

User/Product Owner Group

The User/Product Owner Group helps to develop a list of user requirements, assists the team in prioritising these requirements, gives feedback on the proposed solution designs, and considers the applicability of issues and solutions to future use cases.

Latest news and updates

  • Communications to firms - 30 September 2021

    On 23 February 2021 we, the Bank of England (BoE) and the Financial Conduct Authority (FCA), published a letter committing to transform data collection from the UK financial sector (Transforming Data Collection). The letter set out a long term reform agenda to tackle the issues we and industry face with the cost, data quality and flexibility of the data collection process. As evidenced by a number of studies on data collection1, we think these issues are significant and require strategic investment to address. 

    At the beginning of July we launched a Joint Transformation Programme with industry to work together on the reform agenda. The Joint Transformation Programme is a space for industry and authorities to come together to design, test and evaluate solutions where collaboration is needed. 

    The Joint Transformation Programme will sit alongside other internal and external initiatives – all of which are needed to deliver the important work of Transforming Data Collection. For firms, these internal initiatives should include urgent work to fix issues identified in the recent PRA supervisory letter on regulatory reporting

    Expected future budget/resource requirements from industry

    We currently have resource commitment from our Joint Transformation Programme participants for the ‘discovery and design’ stage of the first use cases – ending March 2022. We expect we will require industry resource to progress the work beyond March 2022. We expect resource will be required for a number of activities. 

    From July 2022 to July 2023, we expect to move to the ‘implementation’ stage of our phase one use cases. We expect to develop and publish detailed project plans for the implementation stage in Q2 2022. During the implementation stage we expect to develop and deliver some of the solutions we designed in the current ‘discovery and design’ stage. To help develop these detailed project plans, and to wrap-up the current 'discovery and design' stage, we hope some of the current participants in the programme will stay on from March 2022 to July 2022. In Q4 2021 and Q1 2022, we should have greater clarity on which solutions we might take forward for further investment and implementation.

    Some solutions will be applicable to parts of the data collection process we manage. We expect to draw upon the designs and lessons learnt from the Joint Transformation Programme as we invest in our data collection solutions and platforms, and as we plan the future activities and roadmap for Transforming Data Collection. Some of those solutions and platforms have a strong external facing elements (such as the FCA/Bank RegData solution, and the reporting sections of the FCA/Bank’s public website). We expect to ask for help from firms in testing our external facing solutions and gathering their feedback as we develop them. We will be looking to form a group of industry users to do this. We expect that group will consist of individuals that actively use those platforms, and will need to contribute 2 days a month of their time for a 12 month period from July 2022 to July 2023.

    Other solutions are likely to require the development and adoption of industry data standards. These standards will require tooling, training and people to manage and support those standards. We will need applications that show how standards can be used and add value to their users. We will be asking industry to contribute to developing new or existing standards and solutions based on those standards. We expect we will require a total of around £2,000,000 in voluntary contributions from industry for solution development.

    From July 2022 to March 2023, we expect the joint transformation programme to carry out an ‘discovery and design’ stage for a new set of use cases. We expect these use cases to be more complex and higher value than the use cases in scope of the current phase. To enable us to continue with our ‘discovery and design’ work for new use cases, we will be asking firms to provide twice the levels and types of resource to the delivery teams as they do currently – around 20 FTE for the core delivery team. These FTE will focus on discovery and design/ prototyping activities, and will allow us to scale the approach and deliver more value faster.

    In 2022, and during the course of the programme, firms and reporting solution providers may wish to consider what internal initiatives they want to run to maximise the benefits of the Joint Transformation Programme. For instance, these initiatives may relate to further developing and rolling out solutions designed by the programme; or may relate to planning and budgeting activities for future phases of the programme and wider work on Transforming Data Collection. We also know that some firms are now investing in significant initiatives to improve their Data Management. 

    Table of requirements/asks:

    Activity When Resource / budget requirement
    Testing BoE / FCA external facing solutions July 2022 – July 2023 2 FTE per month
    Development of solutions n/a In the region of £2,000,000
    Joint Transformation Programme innovation new use cases July 2022 - March 2023 Approx 20 FTE.
    Consider internal initiatives to maximise benefits of the Joint Transformation Programme 2022 n/a

    We do not expect our work on Transforming Data Collection to trigger any mandatory change which will require firm implementation in 2022.

    We recognise firms need to have greater clarity on the future phases and resource needs of the joint transformation programme and Transforming Data Collection work. The next steps for the BoE and FCA are to develop a roadmap for how we take the Transforming Data Collection initiative forward. We expect to have the first version of the roadmap defined and shared with industry by the middle of 2022.

    Finally, for authorised deposit takers, we expect firms to resource urgent work to fix issues identified in the recent PRA supervisory letter on regulatory reporting.

    Progress/Outputs

    Although the Joint Transformation Programme only launched in July, the programme team have already achieved a great deal. They have:

    • Started to work effectively as a group despite working remotely and technology challenges. The Joint Transformation Programme brings together over 100 participants from more than 50 firms across two committees, a core delivery team, design advisory group and product owner group.
    • Started the Discovery Phases for the DQ, CRE and RegData use cases. They have conducted DQ user interviews with 7 firms, the Bank of England and the ONS, as well as researching a wide range of initiatives related to these data collections.
    • Started to identify a series of issues, and started to uncover possible approaches that may tackle those issues for the DQ use case.

    Our wider work on Transforming Data Collection has also recently had a number of successes: 

    • The initial members of the Reporting and Data Standards transformation board have been agreed. The first meeting of the board is scheduled for 2 November 2021.
    • The Bank of England has had a bid for £580,000 of HMT grant money accepted. That money will be used to help deliver a successful first stage of the joint transformation programme.
    • The Bank of England recently asked statistical reporters to use the Legal Entity Identifier for statistical reporting. This is in line with the Bank of England’s commitment to promote the use of common data standards made in the Transformation Plan. 
    • The FCA completed the migration of 52,000 firms to RegData, which provides us with significantly advanced technology to shape the future of data collections.

    Future joint work programme communications and updates

    To ensure we continue to work with industry in an open, collaborative and transparent manner, we will be providing regular programme updates to not only share our outputs, but to provide opportunities to be involved with our work and to give feedback. 

    On Wednesday 13 October we will be running a Town Hall to discuss the Joint Transformation Programme and clarify any key messages industry have from this communication. 

    If you have any questions or points you would like to raise, you can email them to us by Thursday 7th October and we will endeavour to cover them on the day. Alternatively, there will be a short time set aside during the Town Hall for questions. The FCA will also soon provide some communications on how we are going to engage with FCA solo-regulated firms for this transformation journey.

     

    1. See for instance, the Bank of England Data Collection Review, FCA / Bank of England work on Digital Regulatory Reporting, the independent review of the prudential supervision of The Co-operative Bank PLC.

  • Transforming Data Collection Launch Event, including 2022/2023 resource update
    Wednesday 13 October 2021 2pm-2.45pm

    This is a townhall event to announce the launch of our joint transformation programme on Transforming Data Collection. It will provide an update on the progress made so far in the joint transformation programme and the likely budget and resource requirements for FY 22/23. It will also signal future communications and updates.

    Register to attend

    Submit any questions for the Q&A section to TDCSecretariat@bankofengland.co.uk by Thursday 7 October.

Reporting and Data Standards Transformation Board

Alongside the Joint Transformation Programme, we have set up the Reporting and Data Standards Transformation Board. The Board acts as a forum for discussing issues of common concern relating to reporting and the development of data standards to enable better reporting. The Board will consider issues and relevant initiatives beyond the scope of the joint transformation programme.

The board meets every four months and the minutes from each meeting will be published. 

  • Name Firm Role
    Ankur Agrawal AXA Director of Technical Performance Management
    Luke Ashton Barclays Group Chief Data Officer
    Roshan Awatar Lloyds Banking Group Group Chief Data and Analytics Officer (interim)
    Paul Barrett AIG Chief Risk Officer
    Paul Chambers Standard Chartered Bank Group Financial Controller
    Samik Chandarana JP Morgan Chase Chief Data & Analytics Officer, Corporate & Investment Bank
    Charlotte Clark ABI Director of Regulation
    Graham Cohen BNY Mellon EMEA Controller
    Richard Dunne RSA Group Global Head of Regulatory Reporting
    Lee Fulmer UBS Chief Data Officer, UBS Investment Bank
    Alastair Hall Legal & General Group Plc Group Finance Reporting & Operations Director
    Rakshit Kapoor Santander Chief Data Officer
    Shane Kingston Brit Insurance Group Chief Risk Officer & Chief Actuary
    Scott O'Malia ISDA Chief Executive Officer
    David Palmer-Lewis Principality Building Society Accounting & Reporting Manager (currently acting up as Head of Financial & Regulatory Reporting)
    Andy Parsons Just Group PLC Group Chief Financial Officer
    Adrian Pearce Credit Suisse Group Chief Data Officer
    Corinne Powley Phoenix Group Head of Life Finance Data, Systems and Change
    Elaine Priest NatWest Head of Risk & Finance Data Transformation
    Charles Reindorf Bank of America Managing Director
    Charles Resnick ClearBank Head of Financial Control
    Simone Steel Nationwide Building Society Chief Data Officer
    John Tierney Nomura EMEA Chief Operating Officer

Aligning with other initiatives

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. 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: TDCSecretariat@bankofengland.co.uk

How to get involved

As we work towards transforming data collection, the joint transformation programme is working with industry in an open, collaborative and transparent way. This will ensure we have the widest possible set of views to get the best solutions to the issues we are tackling. There are still lots of opportunities to get involved.

If you would like to be involved or would like to find out more, please contact  TDCSecretariat@bankofengland.co.uk.

This page was last updated 18 October 2021

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