Real time reporting vital for West African banks to become Basel 2 compliant
As the Nigerian banking sector races to become Basel 2 compliant, innovation becomes critical in helping banks establish more efficient processes, increase transparency and become more customer centric. SAP Africa strives to provide the banking sector with agile financial solutions designed to deliver detailed regulatory reporting, on a single data platform , with the ability to handle mass analysis within seconds.
Countries all over Africa – including Nigeria which is the largest economy - are making every effort to increase their levels of regulatory compliance to keep up with legislative and economic requirements for analysing financial data, including threats and risks.
“SAP Africa, in partnership with EY (Ernst and Young), are committed to transforming the banking sector in Nigeria to become Basel 2 compliant and take advantage of the Big Data analytics solution for real-time reporting,” says Darrel Orsmond, Head of Financial Services for SAP Africa. Through this technology, the banking sector will be in a competitive position to provide rapid assessment of capital, reporting to the Regulator for compliance and delivering of reports in real time, according to Orsmond.
Orsmond adds, “The average timeframe for banks to become Basel 2 compliant can be as much as 18 months, and banks should start preparing well in advance for Basel implementations. These preparations should include technology investments in risk management, real-time reporting, data analysis and cleansing capabilities.”
“By identifying and eliminating risks in advance through the use of real-time reporting, banks can satisfy the needs and demands of stakeholders thereby reducing risk and increasing regulatory compliance.” Orsmond commented,” Banks that are not Basel 2 compliant could run the risk of not pricing their loans correctly, thereby not holding the appropriate levels of capital.” He further added that accurate bank data is vital to reach Basel 2 compliance and often the biggest challenge and cost of implementation is not the software itself, but rather the time it takes to implement, caused by inaccurate bank data and a shortage of the required mathematical and modelling skills.
Precise records of losses and the legal processes involved, are essential inputs to ensure the accurate prediction of potential losses. Banks need to hold just the right level of capital, and poor data usually leads to Banks having to carry excess levels of capital.
Darrel Orsmond addressed the issue of regulatory compliance at the SAP Basel 2 – Regulatory and Reporting Demands for Big Data event being held in Lagos, Nigeria on 27 May 2014 and is available for comment.
As market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device – SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable more than 253,500 customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com.
Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “project,” “predict,” “should” and “will” and similar expressions as they relate to SAP are intended to identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect SAP's future financial results are discussed more fully in SAP's filings with the U.S. Securities and Exchange Commission ("SEC"), including SAP's most recent Annual Report on Form 20-F filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.
2014 SAP AG. All rights reserved.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries. Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices.
Note to editors:
To preview and download broadcast-standard stock footage and press photos digitally, please visit www.sap.com/photos. On this platform, you can find high resolution material for your media channels. To view video stories on diverse topics, visit www.sap-tv.com. From this site, you can embed videos into your own Web pages, share video via email links and subscribe to RSS feeds from SAP TV.
Follow SAP Africa on Twitter at @SAPAfrica
For customers interested in learning more about SAP products:
SAP Africa (within SA): 0800 981334
SAP Africa (outside SA): +27 11 235 6045
Global Customer Center: +49 180 534-34-24
United States Only: +1 (800) 872-1SAP (1-800-872-1727)
For more information, press only:
Ansophie Strydom, SAP Africa, +27 (11) 235-9103, email@example.com CAT
Andrea Slater, FleishmanHillard, +27 (11) 548-2000, firstname.lastname@example.org CAT
Richard McCormack, marcus brewster, +27 (11) 022-9711, email@example.com CAT