While many banks across the globe have focused on modernising their customer-facing systems, regulatory reporting has largely remained a manual process, which is often time-consuming, labour intensive, costly and prone to a high degree of error. Analysing multiple files and databases and relying on involvement from multiple departments, the process of submitting requirements to central banks is cumbersome and can take weeks due to the presence of errors and the resulting corrections required.

Kuwait Finance House (KFH) – Bahrain recognised the importance of streamlining its regulatory reporting processes to improve organisation-wide efficiency. KFH – Bahrain is a leading provider
of Islamic commercial and investment banking services and specialises in conceptualising the development and introduction of innovative, Sharia-compliant banking and investment products. After a meticulous vetting process, Codebase Technologies was selected to help the Bank revolutionise its regulatory reporting process.

Codebase Technologies is one of the world’s fastest-growing open API-based banking solutions providers. The company creates impactful digital financial experiences for conventional and Islamic banks, fintechs, neobanks, lenders, and start-ups, and has successfully launched projects across the UAE, Bahrain, Malaysia, Singapore, Bahrain, UK, and Africa.

Solution and Implementation Overview

Working with KFH-Bahrain’s Finance and Compliance teams, Codebase delivered a solution that would later go on to become the MENA region’s first fully automated Central Bank regulatory reporting platform.

The Bank’s entire regulatory reporting process was automated, allowing the KFH-Bahrain team to generate the required reports in minutes at the click of a button. The Digibanc^TM RegReporting solution took about two months to configure and launch and was seamlessly connected to data sources that picked up all required data instantly, saving the bank time and money, and reducing the incidence of human error.

Codebase’s solution is highly adaptable and flexible, built using open API-driven and an open-source micro-services architecture. Furthermore, the solution is cloud and database agnostic and can be integrated with banks’ existing core banking systems, cutting down on implementation time and overall cost. The solution is extremely flexible and can be deployed on the cloud, on-premises, private cloud or in a hybrid model, thus providing added flexibility and control to the Bank.

The Codebase Technologies project team consisted of seven members, including the project director, delivery manager, project & product manager, and a full-stack developer. The solution took about two months to be initially deployed, from concept and design to development, integration, testing and launch.

Benefits Achieved

The platform created an improved relationship and increased transparency with regulators and shareholders by providing accurate financial information and data. Using Digibanc^TM RegReporting, KFH-Bahrain’s team were able to create accurate CAGR reports, RISK reports, PIRI reports, and other central Bank required reports – as would any bank that implements the solution.

Upon implementing the Digibanc^TM RegReporting solution from Codebase Technologies, KFH-Bahrain experienced numerous other benefits to their regulatory reporting process, including:

• Improved operating efficiency by 100%
• Reduction in task cost by 90%
• Improvement in task accuracy and efficacy by 92%
• Reduction in reporting time by over 80%

Conclusion

The strongest regulatory reporting mechanisms will self-identify problems, identify suitable data needs and interpretations, determine how to retrieve necessary data, and provide proper documentation. The versatility of Codebase Technologies’ solution enabled Kuwait Finance House – Bahrain to enhance the quality and efficiency of its regulatory reporting in the organisation while delivering several aforementioned benefits as part of a swift implementation.

Key Facts

Supplier: Codebase Technologies
Headquarters: United Arab Emirates
Founded: 2017
Client: Kuwait Finance House – Bahrain
Solution: Digibanc^TM RegReporting
Timeline: Two months