regTech product CBD (Compliance by Design) for the Corporate & Investment banks
CBD (Compliance by Design) is the regTech product for the corporate and investment banks that further enable them to deliver towards their purpose more powerfully. It makes the bank more robust, clean, purposeful and sustainable for the long term. It sits outside of the std. NZ Transition Plans, and is a key part of Corporate & Investment banks' systemic change for their Just NZ Transition at the pace they must leading to their longterm sustainability and disclosure of universal ESG metrics that can solve the problem of Greenwashing. CBD is also a result of the std Transformation Methodology CTM's initial version, created in 2018. That CTM also led the bank towards its culture shift. The current CTM has evolved ever since and is the standardised Transformation Methodology based on which the std NZ Transition Plans with variations for the leading FIs and real-economy large corporates have evolved.
CBD solves these bank’s challenges in complying with regulations, solves their core issues of data silo, measures credit risk and compliance risk more accurately and discretely, integrates ESG metrics alongside financials in measuring businesses' creditworthiness, brings more agility to the bank in responding to their own business requirements, creates a bank-wide MIS etc and thereby helps the bank to become more robust, clean, purposeful and sustainable for the long term. The bank becomes more robust through enhancement in its risk management practices wherein it has rolled up views of its risk data at various levels leading to the bank’s balance sheet level that is collated from its accurate and discrete risk data at the transaction level arrived at through Data Science models. This decision-worthy risk data’s availability at various levels shifts the culture and makes it more risk-focused. Also, the compliance risk data is available at the click of a button, and continuous online monitoring of transactions enables the bank to act in time against any suspicious activity. The ESG data coming from various data points can be integrated into the DS models alongside the financial information for more accurate predictions of the creditworthiness of businesses. Business processes with embedded risk data and other information they need, enhance their agility to service their business requirements. All these lead to the bank becoming more robust, clean, purposeful and sustainable for the long term. Thus, these banks are better prepared to respond to their responsibility and power to steer the economy towards one that is climate-friendly, inclusive and sustainable for the long term.