The Australian Prudential Regulation Authority (APRA) has set out a five-year roadmap for transforming its approach to collecting financial industry data from the over-2000 entities it regulates.
In a discussion paper released for consultation today, APRA has outlined plans to collect richer data through APRA Connect, its new data collection system. The proposed collections will enable APRA and peer agencies to deliver deeper insights, while ultimately reducing the burden for industry.
APRA intends to collect deeper, broader data sets that are able to be used in many different ways – including to explore issues beyond the horizon. APRA will continue to strengthen its partnerships with peer agencies, with the aim that data can be collected once and shared, thus reducing burden on industry.
The move to richer, more flexible data collections will be enabled by a transition away from APRA’s current data collection system, D2A. All new collections will be created in APRA Connect, and by 2027, APRA expects to have all collections on APRA Connect and be in a position to decommission D2A.
The paper sets out a roadmap for each industry that has been tailored to reflect the work already underway on new data collections, the expected regulatory policy agenda, and the industry’s capacity to accommodate change.
Deputy Chair Helen Rowell said updating APRA’s approach to collecting data would significantly improve APRA’s capacity to protect the community today while also preparing for tomorrow.
“Access to high quality data is essential for APRA to monitor whether entities are meeting their prudential requirements, and to identify and address emerging risks in a timely manner.
“Collecting more granular and consistent data that better enables data-driven decision-making is one of the core pillars of our Corporate Plan. We are already well down this road with APRA Connect up and running, and the phase one of the Superannuation Data Transformation now complete.
“Today’s discussion paper spells out how we intend to complete the transformation over the next five years. We realise the proposed timelines are ambitious and substantial effort will be required from entities to achieve them. In the long-term, however, this transformation will lower the burden on industry by making data submission more efficient, reducing duplication and the need for ad hoc data requests.
“APRA will also be able to enhance the data available to peer agencies for policy and operational decisions, and share more insights with industry,” Mrs Rowell said.
APRA intends to engage closely with entities and other key stakeholders on the proposed roadmap, and will begin to schedule industry webinars and roundtable discussions in coming weeks. APRA also encourages written submissions in response to the discussion paper.
The discussion paper is available on APRA’s website at: Direction for data collections.