Client entity & account certification
The global markets division of a major European investment bank engaged us to deliver a comprehensive account certification system. They faced increased regulatory scrutiny, a tight deadline and multiple, inconsistent data sources.
Increased regulatory scrutiny
Our client needed to meet an extremely tight deadline, imposed by regulators, to develop and validate a robust account certification system.
Many internal attempts to deliver a solution had been unsuccessful.
No single source of truth
Our client also had a number of challenges with the quality and consistency of their data.
- No ‘single source of truth’ – multiple, contradictory sources of account/entity information.
- Poor quality data across all sources with missing and inconsistent data elements.
- A fragmented technology landscape. Disparate data sources that were difficult to combine coherently.
Designing a set of tests
To mitigate the risks brought on by multiple data sources and to compensate for missing or inconsistent data, we devised a comprehensive set of repeatable tests to validate data sources.
We began by identifying and sourcing all relevant data to support the account certification tests, and then used Lavastorm Analytics Engine to load and normalise the data.
The tests consisted of primary and secondary categories of checks.
- Primary checks were conducted on client account and entity records.
- Secondary checks leveraged additional internal sources of data, such as credit and traded risk hierarchies to re-validate the primary checks.
Exact & partial matching
Exact name matches were awarded maximum scores. Partial matches scoring 70% and above were awarded a higher score than those with 50% and above. Anything below 50% were awarded zero or negative scores.
The credit and risk checks determined the legitimacy of the entity and client account relationship.
These internal checks matched entity and account information to the credit and risk hierarchy – if the match was valid then scores were awarded as normal.
If the internal checks revealed inconsistencies, all other tests would be invalidated and the entity would not be account certified.
Confidence in the scores
Scores from all tests were totalled and graded to ensure the required level of confidence in a match.
Anything below the required value would be sent to the review team for investigation, and a request for additional data from clients to allow certification.
A robust and repeatable framework delivered fast
We scoped, built and delivered the system to our client within 8 weeks which allowed them to successfully meet the deadline imposed by their regulators.
The solution we constructed, using the Lavastorm Analytics Engine, enabled the system to run on a repeatable basis, allowing for a robust control and monitoring framework to be established.
1.5m accounts certified relating to 250k entities with a total certification rate of 91.5% across Corporate and Bank/FIs.