GovTech challenge CHALLENGE #1: REGTECH

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Agenda • The challenge

• Current situation

• What‘s done?

• Live Demo

• Q&A

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The challenge

CHALLENGE: What technological solution(s) would allow the Bank of Lithuania to automatically obtain the data from market participants necessary for

supervision?

SOLUTION: A technological solution should allow the Bank of Lithuania to obtain

structured micro-level data and automatically transfer it to the required reports, including the solution on accessing data in a specified format or

manner

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Current situation (before RegTech)

• There is a need for a lot of financial institutions resources to prepare the reports

• The report calculations are not standardized

• Financial institutions reports contains aggregated data -there is no possibility for detailed investigation and analysis

• Reports are delivered too late

• The risk of uncontrolled FinTech environment

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Why us?

• Out of the box solution for FI

• Easy implementation

• Faster development

• Standard & Single point of data access

• Gives transperancy & control

• Reusable component for Self-Service Analytics

2,000 Employees across the world

75,000 Customers cases solved every year

5X Microsoft global partner of the year

8,600 Business application implementations

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Timeline

Open call for

solutions

GovTech Pitch day

DEMO

day

0Prototype develop-

ment

2019-07-24

2019-09-16

2019-11-01

2020-02-24

RegTech SOLUTION

dev.

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What’s done? ConnectPay, Interpaylink and Paysolut granted access to their Testing data

Data access was standardized and provided through Peekdata Data API

2 real life reports have been selected for MVP

LB Analytics can drill-down through the reports to the detailed data for the deep dive analysis

Bank of Lithuania got access to the reports through Power BI toolset

Data is automatically collected and processed by Columbus Solution

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MVP reports agreed with the Bank of Lithuania and financial institutions

Reporting forms to be submitted by payment service providers:

Reporting forms to be submitted by payment service providers:

# Financial and activity reports for supervisory purposes: # Reports for supervision of the implementation of money laundering

and/or terrorist financing prevention measures: # Statistical reporting requirements:

1 Form EM008_01 (balance 1 sheet statement) 1 Form EM0010_01 (report on customers with whom business relationships are established)

1 Payments Statistical Reporting Form 0607

2 Form EM008_02 (off-balance sheet statement) 2 Form EM0010_02 (report on significant payment 2 transactions) 2 Fraudulent payments statistical reporting form

3 Form EM008_03 (profit (loss) statement) 3 Form EM0010_03 (report on payment transactions related to foreign countries)

4 Form EM008_04 (statement of changes in equity) 4 Form EM0010_04 (report on monitoring) 5 Form EM008_05 (report on performance indicators and

safeguarding of received funds) 5 Form EM0010_05 (report on foreign customers and their payment

transactions)

6 Form EM_007 (report on initial capital and own funds) 6 Form EM0010_06 (report on activities of intermediaries)

7 Form EM008_06 (report on granted loans) 8 Form EM008_07 (report on funds deposited in a separate

account) # Operational or security incident reports:

9 Form EM008_08 (report on the number of employees) 1 Notification template on major operational or security incidents (OPRISK)

10 Form EM008_09 (report on received complaints) 2 Notification template on the suspected fraudulent activities of the payer (FRAUD)

11 Form EM008_10 (report on services) 3 Notification template on limiting access for an account information service provider or a payment initiation service provider to a payment account (BLOCK)

12 Form EM008_11 (report on closure or restriction of an account)

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MVP reports agreed with the Bank of Lithuania and financial institutions

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Live Demo

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• Data is collected faster and automatically

• Bank of Lithuania analysts can access detailed data

• Getting access to micro data faster

• Increased transparency of financial institutions and industry as a whole

• Low cost of implementation of the regulation requirements and changes

• Reusable solution for customers and partners

• Faster development of reports and data applications

• Transparency and trustworthiness

• Better focus on main business

Benefits for the Bank of Lithuania

Benefits for financial institutions

• Data processing is done by the Bank of Lithuania

• Better accuracy and less mistakes

• More possibilities to get new patterns and insights

• A platform for sharing data and insights

Mutual benefits

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Next steps