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APRA’s data analytics evolution: from information to insights
Helen Rowell, Deputy Chair
Katrina Ellis, General Manager Data Transformation
This presentation has been prepared for the Actuaries Institute 2018 Financial Services Forum. The Institute Council wishes it to be understood that opinions put forward herein are not necessarily those of the Institute and the Council
is not responsible for those opinions.
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APRA’s role
OUR ROLE FOR THE AUSTRALIAN COMMUNITY
PROMOTE FINANCIAL SYSTEM STABILITY
FINANCIAL SAFETY
BALANCED WITH EFFICIENCY, COMPETITION, CONTESTABILITY, AND COMPETITIVE NEUTRALITY
FINANCIAL SAFETY
OUR SECONDARY ROLE FOR THE FINANCIAL SECTORSTATISTICAL DATA COLLECTION AGENCY
APRA COLLECTS DATA FOR:APRA, RBA, ABS, ASIC, ATO, DoH, DAWR, BIS
APRA PROVIDES DATA TO: THE PUBLIC, RESEARCHERS, TREASURY, PC, IMF, …
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The changing regulatory landscape
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Data and analytics is an enabler for APRA achieving its strategic vision
Sharpening risk-based supervision
New Risk and Data Analytics Division• Risk Specialists• Statistics• Industry Analysis
Modernised Data and Analytics Capabilities• New data collection tool• Modern enterprise data
warehouse• Data visualisation tools• Documents as data
Integrated approach to data and analytics• Entity-level• Industry-level• Macro-level
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Jul-Dec 2017 Jan-Jun 2018 Jul-Dec 2018 Jan-Jun 2019 Jul-Dec 2019 Jan-Jun 2020
Program
Data Collection
Solution
Enterprise Data
Warehouse
Access to Data
Innovation Centre Lab
Data Transformation Program timeline
Planning Communications and engagement
Data Migration
Planning APRA buildGathering
requirements
External Stakeholder Engagement
Product Selection Industry Implementation
Defining change Reinforcing change
Planning Develop and deliver products Transition
Planning
Build internal analytics community
Transition
Run experiments
Target Op Model
Gather data user needs, reinforce change
Transition
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Our transformation
Looking for data Interpreting data
Hindsight Foresight
Passive consumption Active exploration
Multiple standards One standard
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APRA’s use of data
Entity financial analysisPeer benchmarking
Outlier analysisExceptions reports
Industry overview
Evidence-based policy
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Data stories – entity lensADI mortgages - hypothetical borrower loan serviceabilityAnalytics to support supervisory discussions with ADIs
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Data stories – outlier lensSuperannuation MySuper member outcomesAnalytics to support supervisory resource focus
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Data stories – industry lensLife insurance – changing industry ownershipAnalysis to support supervisory awareness of emerging trends
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Data stories – policy lensADI unquestionably strong capital levels – international peer comparisonsAnalysis to support policy settings with evidence
Major banks’ internationally comparable CET1 ratios against the Basel 75th percentile
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Into the future
REGTECH