What is the situation in Colombia?
1. BanRep requires granular data from FX transactions to fulfil its mandates on monetary policy, exchange rate policy, and financial stability. In addition, the data collected is needed to generate reports and statistics.
2. Currently, FX transactional data is mostly collected from forms submitted by regulated FX intermediaries (IMCs) through various formats and systems.
3. Pain Points:
- Data collected comes mostly from regulated IMCs, excluding some fintech firms and crypto exchanges currently offering FX transactions.
- There are multiple data collection systems that are not interoperable and hinder data sharing.
- Current data collection schemes make it difficult for BanRep to obtain timely data.
- Manual tasks in data processing produce operational risks and inefficiencies that affect the fulfilment of BanRep’s functions.
- Processes implemented by IMCs to comply with regulatory reports increase their costs.
4. Challenges:
- How to integrate the complex data architecture used by BanRep to efficiently collect data from the FX market?
- How to improve data collection processes to increase efficiency and timeliness?
- How to determine what data fintech firms and crypto exchanges must submit regarding FX transactions?
The Cambridge SupTech Lab value proposition:
- A thorough diagnosis to map weaknesses and opportunities to improve the BanRep workflow for processing data concerning FX transactions.
- A Design Sprint to co-create with BanRep’s staff a proof of concept (PoC) of a suptech application to monitor FX transactions, enhancing data coverage and data quality.
- A comprehensive report with the analysis of the business case, the technical specifications of the PoC and a project charter with guidance for the development of the application and for change management.