Modernizing how we collect data from institutions
Making sure we have relevant, timely, and high-quality regulatory data, with the right level of detail is key to our ability to react quickly to changes in the risk environment faced by our regulated entities. Most of the data that OSFI, the Bank of Canada, and the Canada Deposit Insurance Corporation collect from federally regulated financial institutions (institutions) and federally regulated pension plans (plans) is in an aggregated format. This aggregated data has served us well in the past. However, it is not easily adaptable to meet our current and evolving needs. As a result, we often call on the regulated entities to provide additional data on an ad hoc basis that is more specific, which is an added burden.
The Data Collection Modernization initiative
The Data Collection Modernization (DCM) initiative aims to improve the type of data we collect and the way we collect it. This is the future state of regulatory data collection.
To arrive at this future state, we will need to work with the industry on:
- Collecting the data we need
- Developing consistent definitions and standards
- Improving and simplifying processes for data submission
- Moving to a modern data collection technology solution
- Supporting entities as they pursue their own initiatives to modernize regulatory data reporting, including initiatives to improve overall data quality
We will work with the industry throughout this initiative to promote awareness, understand implications, and consider industry’s capacity to meet our needs.
Planned benefits of the initiative
The DCM initiative will:
- Improve our ability to make risk intelligent decisions
- Allow us to respond more quickly to evolving risks in the financial system
- Increase the efficiency of the data reporting process
- Decrease data burden over time
- Contribute to public confidence in Canada’s financial system
Progress
This timeline outlines our progress to date:
- June 2023: Disseminated to the institutions and plans the DCM launch letter
- July 2023: Received feedback from institutions and plans via the industry questionnaire
- September 2023: Initiated bilateral conversations with associations
- November 2023: Held the First DCM Industry Webinar with 525 attendees from institutions, plans, associations, and vendors
- April 2024: Completed the vendor evaluation and qualified two software vendors and five system integrators
- June 2024: Updated the institutions and plans on the progress of the DCM initiative
Coming up next
Our next scheduled steps will be to:
- Fall 2024: Share with industry the high-level results of the assessment of our existing regulatory data
- Fall 2024: Invite industry to engage via industry forums
- Late Winter/Early Spring 2025: Award contract to software vendor and system integrator for the new DCM solution (as per our current procurement schedule).
If you have questions about this initiative, please email dcm-mcd@osfi-bsif.gc.ca.