In today’s world Banks, Financial Institutes and others alike are facing increasing pressure from regulators/governments around the globe to become more transparent regarding the business they conduct in there countries. Regulators are demanding complex reporting data, with every changing attributes and to add to the complexity hosing in-country solutions. This is much evident within Asia where Countries like Malaysia, Indonesia, Japan and others are following suit, among the top is Singapore MAS, where they are demanding raw data feeds “as-is” to be part of the protect the core. Traditionally Banks / FI’s were the first adapters of the Mainframes sitting in there head office in US or UK, now the challenge is how do you move duplicate this infrastructure in Jakarta, where the country is not ready however the regulators are pushing the envelope for doing business in their country. With the help of Distributed Technologies and tools e.g. Pivotal Stack it is now very much possible to move / partition data per country and do reporting within the country on utility hardware. In this presentation I will cover the approach on how to effectively move / host traditionally bulky mainframe applications into a unstructured cluster and do flexible reporting or run BI tools.

1. ie.
Financial
Industry
Regulatory
Reporting
22nd April 2015
Adhish
Pendharkar

2. Agenda
2Adhish Pendharkar

3. The Last Mile Of Finance - LMOF
3Adhish Pendharkar
“The Last Mile of Finance” is a term popularized by Gartner and others to describe
the finance processes and activities that occur between the financial close and
financial reporting and disclosure.
Increasing regulatory reporting and compliance requirements are taking away major
chunks of budgets out of much needed product development budgets.
Account
Reconciliation
Financial
Reporting
Financial
Controls
Regulatory
Reporting

4. Regulatory Reports
4Adhish Pendharkar
• Online Banking Business
Statistics
• E-Banking
oClient Statistics
oClient Exception
• Enterprise Credit Info Basic
DB
• FX Important Issue Report
• FCY International Rate
oRegistration
oSmall Amt
• Payment Tools Qtly Report
• FI interbank deposit int rate
• Credit Note Report
• Trade
oLiability Summary
oStandby LC & Guarantee
oCNY discount int rate
• Acceptance by Beijing Banks
• New Customer transaction
report
• Bill of Exchange
• FX Activity
• AML*
• DB Views for Auditors
• FX Conversion (1-3)
China
• LLD
• LHBU
• LKPBU
• AML
• BILL OC
• ILC OC
• Nostro Activity
• SBLC & GTEE OS
• IOCCA
Indonesia
• FIRC
• TDS Cert / Challan
• CTR Report
• OSA Report
• TDS Dedicatee
• AML (Int rate)
• AML (Residual Maturity)
• Form A3
• Balance of O/S DD & TD
• BCTT
• Basic Statistical Return
• DSB TD Balance AMTs
• DSB TD Balance Int rate
• DSB Top 20 customer
• Non Performing Account
• Outstanding TD
• Service Tax
• Vostro Balance
• R-Return (Nostro / Vastro /
FETERs)
• Consignment Note Follow-up
• CS Follow-up
• BOE Statistics
• Import Register
• Export Register
• TC Register
• ATDME 18-21
India
• FTU
• LTX
• AMLO
• FCY Deposit (FTX)
• Movement for Non-
Resident Account
• Trade o/s
oConfirmed LC
oIssued LC
oSBLC/GTEE
ofinancial booking
• BOT Monitoring report
• THOCCA
Thailand
• Inward Remittance
• Outward Remittance
• Operating Fund report
• Non-Res KRW Acct bal
• Non-Res KRW Acct txn
• Foreign Currency
oCheck purchase & Sell
oDeposit/Trust txn
oloan & repayment
odeposit/trust o/s bal
• X-border remit <1000USD
• Foreign Exchange
• Dormant Account Report
• X-Border In/Out Remittance
• Credit o/s by customer
Korea
• PIDM
• Cash Report
• ITIS *
• AML
• Transaction Amt by
ccy
• Repair Statistics *
• MOCCA Statistics *
• CIF2 Customer
• DB Views for
Auditors
• ATIP MOCCA *
• CQE MOCCA *
• In Remittance
Settlement
• Out Remittance
Settlement
• FX Remittance memo
• Corp customers' FX
deposit
• Remittance to/fro
Mainland China
• Overseas Customer
funds flow
• Cheque Acc
Opening/Change
• Outflow for Overseas
investment
• CDIC
Taiwan
Malaysia

5. MIS Reports – Business Intelligence
5Adhish Pendharkar
• Debit client acct is outgoing; Dr DDA /
Cr CNY Nostro
• Credit client acct is incoming; Cr DDA /
Dr CNY Nostro
• RMB Outgoing Payment
• RMB Incoming Payment
• Transaction Activity Report
• Transaction Outstanding Report
• Loan Activity Report
• Loan Outstanding Report
• GTS Activity Report
• ACBS Activity Report
• Return Reject Report
• GIRO Outward Transaction Report
• FATF Report
• Debit Credit Advice Reports
• Online Deposit Maturity Projection
• Deposit Outstanding Report
• Deposit Assignment Report
• Interest Accrual Report of Entrustment
Loan
• Sweep Execution Report
• Reversal Sweep Status Report
Liquidity
• CNY Nostro
• Account Balance
• Account Details
• Account Interest Rate Details
• Account Odd Details
• Account Customer Details
DDA – Demand Deposit Account
Other BI Reports
Core Systems

6. 6Adhish Pendharkar
Regulatory&MISReporting
Data Elements on one report often comes
from different source systems.
Challenges

7. Is Big Data only for Analysis?
7Adhish Pendharkar
BusinessIntelligence
PredictiveAnalytics data mining
clickstream
advanced analytics
unstructureddata
text analytics
statistical analysis
linear regression
logistic regression
multinomialregression
ordinalregression
elastic net regularization
clusteredvariance
k-Means clustering
3V’s
5VC

8. Loader
Data Warehouse
Current State
8Adhish Pendharkar
CIS
Margin
Core
Systems
Market
Data
Asia Data
EMEA
Data
AMEA
Data
FI Positions
Ref
Data/Prices
Transactions /
Settlements
Position
Client /
Account
ODS
Position
Summary
Ref. Data
Trade
Summary
ETL
EOD
Staging
Liquidity
Risk
Extracts
Disclosure of
Interest (DOI)
Extracts
FI Extracts
FI Extracts
FI Extracts
FI Extracts
FI Extracts
Equity
Extracts
FI Extracts
FI Extracts
Client Open
Trades
FI Extracts
FI Extracts
Position
Region / Country Specific
Region / Country Specific
Region / Country Specific
Reporting Systems
Up Stream / Source Type Data Warehouse Down / Reporting Systems
Volume Variety Velocity?

9. RegulatoryPrograms
AML / CFT
INTRAC
Korea FIU
CAMLAC
India FIU
BNMFIU
TIBMOJ
Data
Validation
Data Quality
Variance
Others
Data Quality
Content Trend
Analysis
Ref Data / Pricing
Services
FX
Core Cash and Depository Data Trade, Liquidity,
Loans, and FX Data
Other Data
(not copies of pre and post trade data)
Payments Processors
GL Funds Cheq
Recei
vable
Payable
ACBS
Purpo
se Cd
Bus
Rules
Prod
code
Other
Sweeping
Acct
Multi Product / Multi-Source Data Composition Services
ExternalData
Distribution
US
Datamart
BASEL
Regulators Other Reporting
Local Reg.
Reporting
Dodd-
Frank
Multiple Local Regulators country specific
Suspicious Transaction Reporting Large Value
Transactions
PAMLC
SCAD
TAMLO
Others
Depository Transaction Systems
Teller DDA Counter
Data Control
Framework Services
Exception
Management
Reconciliation
Others
Annual
Reporting
9
Keyw
ord
Country
Currency
AUSTRAC
Reserve Bank
of NZ
Others
Loans &
Deposits
FCY
Transaction
Others
Financials
Reporting
Strategic Regulatory Reporting Architecture
9Adhish Pendharkar

10. Strategic Regulatory Reporting Platform
10Adhish Pendharkar
Generate Reports
Deploy
Views
Process
Data
Stage
Data
Stateless Data Store: The big data store
holds all asset classes data.
Views / GreenPlum Tables:
 Regional Views: holds generic
attributes/data required by most of
the countries’ reports.
 Local Views: holds specific
attributes/data only required by one
country / LOB
Reporting Services
 Logic Layer: holds business logic
required for each of the reports.
 Presentation and Data submission
layer : Performs reports/data extracts
formatting and transmission.
Reporting Services – Presentation
Big Data Store (Hadoop)
Views / GPTables
ReportingServices–
SubmissionLayer

11. Loader
Data Warehouse
Current State
11Adhish Pendharkar
CIS
Margin
Core
Systems
Market
Data
Asia Data
EMEA
Data
AMEA
Data
FI Positions
Ref
Data/Prices
Transactions /
Settlements
Position
Client /
Account
ODS
Position
Summary
Ref. Data
Trade
Summary
ETL
EOD
Staging
Liquidity
Risk
Extracts
Disclosure of
Interest (DOI)
Extracts
FI Extracts
FI Extracts
FI Extracts
FI Extracts
FI Extracts
Equity
Extracts
FI Extracts
FI Extracts
Client Open
Trades
FI Extracts
FI Extracts
Position
Region / Country Specific
Region / Country Specific
Region / Country Specific
Reporting Systems
Up Stream / Source Type Data Warehouse Down / Reporting Systems
Volume Variety Velocity?

12. Future State
12Adhish Pendharkar
CIS
Margin
Core
Systems
Market
Data
Asia Data
EMEA
Data
AMEA
Data
FI Extracts
FI Extracts
FI Extracts
FI Extracts
FI Extracts
Equity
Extracts
FI Extracts
FI Extracts
Client Open
Trades
FI Extracts
FI Extracts
Position
Region / Country
Specific Reporting
Systems
Up Stream / Source Type Data Warehouse Down / Reporting Systems
Volume Variety Velocity?
Mule(ESB)/EndPointMappersMule(ESB)/EndPointMappersMule(ESB)/EndPointMappers
Big Data Store (Hadoop)
Liquidit
y Risk
View
Disclosure
of
Interest
(DOI)
Extracts
Mule(ESB)/EndPointMappersMule(ESB)/EndPointMappersMule(ESB)/EndPointMappers

13. A bit of Java: Technology Stack
13Adhish Pendharkar
Data (PivotalHD)
Apache/ Tomcat
In Memory Cache
Query Object Cache
Ref. Data Object Cache
Mule Supporting
Services
Service
Registry
System Administrator Users / Operators
Application Session
Golden Data
Sources
GL
Teller
Liquidity
DDA
Payables
Receivables
Sweeping
FX
Vault Regional Views Local Views
…
Integration / End-Points
Mule ESB / Spring Integration (Instance)
In Process Invocation Standalone JVM (Tomcat)
Application InstanceDependency Injection
Dependency Injection
Dependency Injection
Application Instance
Data Access Layer (JPA)
JPA Access Layer
Quartz (Job)
JSP / Bootstrap
Spring
GemFire
Mule
Quartz
JPA
PivotalHD
GreenPlum
Stack
API
Manager
Anypoint

14. A bit of Java: Code Sample
14Adhish Pendharkar

15. Appendix
15Adhish Pendharkar
TAMLO - Thailand Anti-Money Laundering Office (http://www.amlo.go.th)
TIBMOJ - Taiwan Investigation Bureau, Ministry of Justice (http://www.moj.gov.tw)
AML/CFT – Anti Money Laundering – Combating the Financing of Terrorism
(https://www.imf.org)
CAMLAC - China AML Monitoring & Analysis Center
SCAD - Singapore Commercial Affairs Department (http://www.cad.gov.sg/)
INTRAC - Indonesian Financial Transaction Reports and Analysis Center
(http://www.ppatk.go.id)
India FIU – India Financial Intelligence Unit (http://fiuindia.gov.in/)
Korea FIU – Korea Financial Intelligence Unit (http://www.kofiu.go.kr)
PAMLC - Philippines Anti- Money Laundering Council (http://www.amlc.gov.ph/)
AUSTRAC - Australian Transaction Reports and Analysis Centre
(http://www.austrac.gov.au/)
BNMFIU - Bank Negara Malaysia Financial Intelligence Unit (http://amlcft.bnm.gov.my/)

16. 16Adhish Pendharkar