“Doing more high-value, data-driven analytical tasks can provide insightful information to the senior management,” says Jun Liu, head of project management Asia, Finastra.
“An advantage is time to market as having an integrated system means less reliance in terms of the individual integration points between each final system, which makes it much easier and faster to achieve the final report.”
In other words, financial reports required by regulators are delivered much quicker.
Liu says integrated systems can enable internal agents to build figures and reports in a few clicks, particularly in regard to risk management system integration – a significant asset when reporting to regulators.
“This is going to boost the confidence level from regulators and help financial institutions to provide a faster and transparent response to regulators,” he adds.
Adopting this type of system can support firms, banks, and financial institutions to improve their risk management, and therefore improved the management of P&L.
With two bobsguide awards won this year – including Best enterprise software system integration, and Best risk management system integration – Finastra sets itself at the forefront of market participants’ needs to comply with ever-changing regulations.
“Evolving regulatory requirements are one of the biggest challenges. The right tool to support them is something that risk managers look at and try to have a robust tool, looking at integrated solutions with financial institutions,” says Liu.
Prior to digital transformation, risk managers focused on the balance sheet and general ledger (GL) data. With the implementation of integrated systems, different information and factors of data can be consolidated and then presented to risk managers, according to Liu.
But whilst the adoption of tech presents significant advantages, hurdles around adopting system integration remain.
Liu says time presents the biggest hurdle, followed by the desire for change and the lack of resources.
“Time is the real boundary that we are facing right now. Prior to the pandemic, a key hurdle was the willingness coming from the senior management, but the senior management has now seen results.”
Whilst Coronavirus has increased the adoption of system integration, senior managers are increasingly eager to enforce these tools as they realise the benefits on their regulatory reporting and profit – a trend likely to remain post-crisis, according to Liu.
“Everybody is able to achieve further efficiency because of system integrations, with more seamless integration amongst different systems,” he says. “The pandemic is a challenge, but the important thing is to be able to have the right technology and people to drive change.”