Wolters Kluwer Launches Enterprise Credit Solution for China

The Dutch firm provides solutions for regulatory reporting.

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Wolter Kluwer launches reporting solution for China.

Risk and regulatory technology provider Wolters Kluwer has launched its enterprise credit solution for China.

The solutions aims to help financial institutions operating in China to comply with the official China Enterprise Credit System (ECS) reporting standards, which were set by the People's Bank of China last year. 

The Wolters Kluwer Enterprise Credit Solution will gather a bank's commercial and corporate banking data directly from its core-banking and business systems, perform regulatory computations and create on-screen forms containing regulatory data. The solution also provides banks with a multi-dimensional view of their financial conditions, which will help to improve their credit risk management, Ethan Feng, banking regulatory intelligence expert at Wolters Kluwer, tells WatersTechnology.

According to Feng, Chinese regulators started gathering corporate and commercial banking data in 1997 through the Bank Borrowing Registration and Reference Information System, which became the ECS. The ECS originally only applied to deposit-taking institutions. Due to its limited expansion capabilities and low performance, regulators have been upgrading the system, making improvements in 2007 and 2012.

"We have just launched the solution on the latest OneSumX regulatory reporting platform. In response to the regulatory requirements, we foresee there will be more banks using our ECS," Feng says.

He says banks have reporting issues that are caused not only by legacy systems, but by the banks themselves. "For legacy systems, because of limited capacity, banks need to adjust their data from their core system (mostly done manually) to accommodate the functions of the old version. Sometimes, banks fail to report regulatory data by negligence," Feng says. "We use appropriate Extract, Transform, Load (ETL) functions to map the data from banks' core systems."

Under the ECS, daily changes in data have to be reported, and events triggered by credit reporting based on its rules can be recognized on a daily basis, Feng says. In addition, information about the basic account and credit customer can be collected and submitted.

As a result, the data volume collected and reported through ECS is significantly greater than through a traditional regulatory reporting system. Moreover, under the ECS, credit reporting data needs to include multi-dimensional verification from the sequence of business process and logic relations of credit structure, he adds.

Looking ahead, one of Wolters Kluwer's priorities is to continuously enhance its cloud computing and software-as-a-service (SaaS) applications, says Feng. "As SaaS and other cloud-based offerings continue to take over the financial services industry, some financial institutions still find themselves hesitant to adopt them. However, with more organizations implementing a cloud business model, it appears financial institutions must either get on board or risk being left behind," he says.

Read more about financhail technology in mainland China here.

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