Enhancing Compliance and Efficiency in Data Analysis for Financial Regulation

Abstract

The financial industry is rapidly evolving, with data analysis playing a vital role in its governance by facilitating risk identification and market surveillance. However, a fundamental tension between compliance and efficiency has emerged. Compliance should abide by multiple levels of legal norms, rules, and policies, and implement the requirements of data security, data privacy, and data quality and standardization. Efficiency can be improved by optimizing technical tools, data management and process renovation, and cross-departmental collaboration and resource sharing. The balance of the two has to be regulated by some form of regulatory system that puts value on compliant rather than efficient, as well as foster cooperation for optimization with technology help. This article studies the compliance requirement, efficiency enhancement path, and balanced path, which offers some reference for the financial regulatory data analysis to be both compliant and effective.