Reporting to financial regulators with the XBLR format creates confusion
The reporting requirements to EU-authorities for financial institutions has started to come into play within certain areas. This creates confusion since practical documentation is missing from the regulators and many FinTech companies are forced into the hands of consultants.
Financial institutions of various types are required to conduct periodic reporting to local regulators, like the Swedish Financial Inspection and EU-authorities like the European Banking Authority. Following the financial crisis of 2007/2008 numerous resolutions were past to increase regulations of the participants in financial markets. These initiatives are now being implemented regularly. Both MiFID II and MiFIR are scheduled to be implemented as of January 2018 with extensive reporting requirements and scarce information of how this should be implemented practically. During 2017, financial institutions and FinTech companies were impacted by EU-reporting in practice. One example is the reporting file format called XBLR were a lot of confusion exists.
To help the industry with practical solutions and guidance where information is missing from the regulators Bricknode releases public articles like the following guide which explains how to conduct reporting of capital adequacy as a payment service provider to the European Banking Authority through the Swedish Financial Inspection: http://blog.bricknode.com/en/bricknode-blog/submit-periodic-reporting-financial-regulators-new-xbrl-format/
"In my role as CEO of Bricknode, where we work to help our customers and partners who are financial institutions by delivering software, and as Chairman of Kreditbörsen, where we offer a peer to peer lending service for end users, I constantly get exposed to government reporting. The Swedish Tax Agency has great documentation and guidance of how and what to report with clear documentation and guidance together with technical specifications for software developers.
Unfortunatley the explosion of EU-regulations during the last few years has impacted the Swedish Financial Inspection in a way where the workload is too high. Documentation, guidance and specifications available for the regulated companies is hard to find and not easy to understand.
The focus for companies and the regulators is not to launch better financial services but most resources are dedicated to implementing more regulations. This in turn impacts the consumer through higher costs. Communication with government systems is mostly being conducted with various files but it would be interesting to explore the use of open API's as well." says Stefan Willebrand, CEO of Bricknode
Stefan Willebrand, CEO and Co-Founder
The financial industry is currently going through the most significant change since mutual funds were introduced. Financial Technology (FinTech) innovations are adding services that focus on usability and value.
Bricknode wants to put the Fun in finance and has established a FinTech Ecosystem where the participants in the financial industry can meet and create value for each other and their customers.