Comprehensive analysis of data warehousing solutions for regulatory compliance reporting in banking sector

Posted: Feb 28, 2024

• Maria Sanchez
• Mateo Garcia
• Matthew Sanchez

Abstract

The banking sector faces unprecedented challenges in regulatory compliance reporting, with financial institutions required to process and report increasingly complex data across multiple regulatory frameworks. Traditional data warehousing solutions, while effective for operational reporting, often struggle to meet the dynamic requirements of modern compliance regimes. The complexity arises from multiple factors including the volume of regulatory requirements, the velocity of regulatory changes, and the variety of data sources that must be integrated for comprehensive reporting. This research addresses the critical gap in understanding how data warehousing architectures can be optimized specifically for regulatory compliance purposes. Current literature on data warehousing in banking primarily focuses on operational efficiency and customer analytics, with limited attention to the specialized requirements of regulatory compliance. The existing approaches fail to account for the unique characteristics of compliance data, which include high dimensionality, temporal sensitivity, and cross-jurisdictional complexity. Our study introduces a novel perspective by examining data warehousing solutions through the lens of regulatory adaptability and computational efficiency for compliance-specific workloads. This paper makes several original contributions to the field. First, we develop a comprehensive evaluation framework that assesses data warehousing solutions across multiple compliance-specific dimensions. Second, we introduce a quantum-inspired optimization approach that significantly enhances the performance of complex regulatory queries. Third, we provide empirical evidence of the relationship between data warehouse architectural patterns and compliance reporting accuracy. Finally, we propose a hybrid architecture that combines traditional data warehousing with emerging computational paradigms to address the scalability challenges of regulatory reporting.