The complex task of monthly data submission on lending activity posed a big challenge to local banks. Discover how we helped.
Monitoring retail and corporate loans and related processes is one of the main responsibilities of central banks throughout the world since the 2008 financial crisis. The Hungarian National Bank developed a comprehensive reporting framework called HITREG (acronym for Loan Register) which enables all banks under Hungarian legislation to report detailed data concerning Retail and Corporate lending activities. Fulfilling the reporting obligation posed a great challenge to many Hungarian Banks, many of them chose Advocate consultants to analyse the requirements of the new reporting framework, design and develop Business Intelligence solutions in order to tackle the challenges of the mandated monthly report.
Strict and comprehensive validation rules, data quality issues
The new HITREG reporting framework requires all Hungarian banks to report the following analytical data:
The new reporting obligation posed a big challenge to banks, because the regulator developed a robust and strict validation framework that automatically rejects any reporting package that has a single error, regardless the severity or type of it. The mentioned framework handles different types of errors: checking mandatory fields, checking data formats and constraints, but the most challenging validation types are the business logic and integrity validations.
Needless to say, a strict and comprehensive validation set requires very high data quality, which is the biggest obstacle in case of many banks due to mostly paper-based loan origination processes and low degree of digitalization.
Because of the robust requirements, fulfilling HITREG reporting obligation was not an easy task, several projects were started with Advocate consultants on board to help our clients.
Consolidating and connecting underlying data
Advocate consultants were participating in many development projects with the goal of being able to generate the necessary HITREG reports containing all the necessary data with the highest data quality available. For achieving this, the following tasks were done by our consultants:
With the help of Advocate Project Managers our consultants were able to help our clients with a carefully planned project plan and detailed specifications to launch a multi-release project that enabled the on-time delivery of the data mart and made sure our clients were able to meet the deadline of the reporting obligation and continue to submit the reporting package every month.