Bank of England sets out ambitious plans to revolutionise financial data collectio
At the recent RegTech Summit in London, James Benford from the Bank of England (BoE) outlined the institution’s ambitious plans to revolutionise data collection and its use across the financial sector.
The BoE is working with the Financial Conduct Authority (FCA) and global regulators to improve how it collects, shares, and analyses data to support UK economic competitiveness and long-term growth.
Benford emphasised that data is a core asset, not just for monetary and financial stability but also for advancing technologies like AI. To this end, the BoE has launched a three-year data and analytics strategy, focusing on closing data gaps, enhancing data quality, and enabling innovation. The cornerstone of this transformation is the STRATUS system, a cloud-based platform designed to enhance data processing, allowing for faster and more efficient publication of over 30,000 statistical series collected from more than 300 institutions.
The UK’s exit from the European Union has provided an opportunity to overhaul regulatory data collections, aligning them more closely with national needs. Simplifying and consolidating these collections could save the financial sector up to £2 billion annually. The Transforming Data Collections (TDC) programme, a joint effort with the FCA, is addressing these inefficiencies by embedding stronger data standards and improving the clarity of reporting requirements, ensuring firms only provide the data that regulators truly need.
Benford also highlighted how advanced technologies, such as AI and the cloud, can streamline the data supply chain, reducing costs and improving data quality across the sector. He emphasised the need for greater collaboration between regulators and the financial industry to ensure data is used as a national asset, benefiting all stakeholders. The Bank’s work with industry bodies such as the Industry Data Standards Committee (IDSC) aims to embed common standards, enhancing data consistency and quality across firms. This push for standardisation, including the use of XBRL, supports more efficient data reporting, benefiting both regulators and industry.
The speech concluded with a clear message: transforming the UK’s financial data ecosystem will take time, but the long-term rewards are substantial. By improving how data is collected and used, the BoE hopes to strengthen financial regulation, foster innovation, and reduce reporting burdens on firms, all while supporting the international competitiveness of the UK.
For more details on the Bank of England’s data transformation plans, read the full speech here.
