Regulatory capital calculation product of the year: Regnology

Capital regulation is becoming more complex and data intensive. Regnology’s cloud-native platform helps banks streamline regulatory capital calculation while strengthening strategic decision-making

Banks’ capital planning requirements are now a core strategic challenge as well as a compliance one. The advent of the final Basel III reforms in their local incarnations, including the Basel III endgame in the US, Basel 3.1 in the UK, and the third capital requirements regulation in the European Union, has introduced a significant operational burden on banks, requiring them to collect more data, perform more complex calculations and provide much greater data granularity. Meanwhile, diverging national requirements add to a fragmented regulatory landscape already characterised by continuous change.

Regnology helps banks meet these challenges head-on through its Regnology Reporting Hub (RRH), with its approach securing the firm the Regulatory capital calculation product of the year category in the Risk Technology Awards 2026.

RRH is Regnology’s solution for regulatory capital calculation, spanning the entire Basel prudential framework and orchestrating the full reporting lifecycle from data ingestion to submission. Powered by Regnology’s Rcloud offering, it has been designed to handle the large data volumes and the complexity of the new era. Running on Ascend, Regnology’s cloud-native platform also shared by the Regnology Risk Hub (RRiH), RRH benefits from the same architecture used for economic capital calculations, and it can be further augmented with Regnology’s agentic artificial intelligence portfolio, Regnology Intelligence (RGI).

Today, RRH is used by financial institutions in over 150 countries. These institutions benefit from Regnology’s expertise across the regulatory spectrum, from regulated firms to regulators themselves, providing additional insight into supervisory expectations that feeds into product development.

A key advantage of RRH is its data foundation, the Regnology Granular Data Model (RGD). The RGD overcomes the pervasive challenge of data silos by aggregating information from across a bank’s many different systems into a consistent structure in granular detail, as well as providing complete data lineage as per the Basel Committee on Banking Supervision’s 239 requirements. In doing so, it means banks can take a ‘map once, report many’ approach, confident they are using a single source of truth and can meet the more detailed data demands created by new standardised capital rules.

“The standardised approaches for credit risk and operational risk, and the aggregate output floor, all point to the same underlying demand: much deeper, more granular data than most banks’ legacy architectures were ever built to hold – loan-level loan-to-values, a decade of operational loss history, parallel risk-weighted asset [RWA] runs under two methodologies,” says Shan Goyal, product director at Regnology. “None of that is achievable by bolting on another spreadsheet. It requires a data foundation built for granularity from day one.”

Over the past 12 months, Regnology has transformed RRH from a standardised reporting tool to a strategic, end-to-end capital management solution, culminating in the launch of its next-generation platform, RRH Ascend.

Built around Regnology’s vision of straight-through reporting (STR), RRH Ascend is underpinned by an enhanced RGD, which incorporates drill-down data lineage to strengthen data governance and provide greater transparency into how data flows from source systems through to regulatory reports.

Capital management is shifting from a quarterly reporting exercise to something closer to continuous strategic steering

Shan Goyal, Regnology

On top of this data foundation, Regnology has embedded a suite of AI-powered capabilities under RGI, designed to improve efficiency across the reporting lifecycle. These include AI-driven data mapping and smart taxonomies to simplify data ingestion and automate the consumption of machine-readable rule books; the Regnology Chatbot to assist with complex regulatory questions; and Rconnect, which streamlines communication between institutions and regulators by analysing unstructured messages to create tasks and workflows. RGI capabilities have been further expanded in 2026, extending from workflow assistance towards more autonomous execution.

Additionally, the redesigned key risk indicator dashboard extends its role beyond regulatory reporting. By combining predictive analytics and risk profiling, it provides forward-looking insights that help institutions anticipate emerging risks and proactively manage their capital position rather than just report on it.

“Capital management is shifting from a quarterly reporting exercise to something closer to continuous strategic steering,” says Goyal. “Once a bank can see its risk position and forecast its capital trajectory in the same place, in near-real time, the conversation with the business changes from ‘Are we compliant?’ to ‘What should we do next?’”

Regnology’s acquisition of Wolters Kluwer Financial Regulatory Reporting in 2025 has further contributed to RRH Ascend’s development. RRH has long been built to integrate with best-of-breed calculation engines through established partnerships, and it now connects just as readily with RRiH, giving clients access to a powerful calculation engine supporting more than 30,000 calculations and the ability to model an unlimited number of what-if scenarios.

In recent months, Regnology has continued to build on this foundation with the launch of RRiH Ascend, bringing RRiH fully onto the Ascend platform and incorporating capabilities gained through the Wolters Kluwer OneSumX for Risk and Moody’s regulatory reporting and asset-liability management (ALM) acquisitions.

Powered by RGI, RRiH Ascend brings the credit risk, market risk, stress-testing and prudential risk calculations that feed regulatory and economic capital into the same environment as RRH, alongside broader ALM, liquidity and profitability capabilities, giving clients a consistent view across business lines and legal entities for both internal and regulatory reporting.

Accordingly, they can assess the likely impact of changes in capital regimes, support firm-wide stress-testing, and implement advanced risk-adjusted performance measures such as risk-adjusted return on capital to drive optimal capital allocation.

The acquisition has also enabled Regnology to extend RRH’s functional and jurisdictional scope. The existing library has been expanded to include more regulatory content and report templates for more countries, which, from a capital calculation perspective, means deeper, more localised expertise and pre-built logic for national discretion embedded directly within the platform.

Looking ahead, the firm expects the challenges surrounding capital calculation to continue to intensify, extending far beyond regulatory compliance.

“The biggest capital risk we see isn’t a compliance gap, it’s a strategic blind spot: many banks still can’t say with confidence what a new product line or business decision will do to their RWA under next year’s rules,” explains Goyal. “Add the difficulty of pulling a clean decade of historical loss data, and of assessing credit risk, market risk and interest rate risk in the banking book as one connected picture rather than three separate ones, and it’s clear why capital planning has become a board-level issue, not just a regulatory one.”

Regnology is answering these challenges through RGI, spanning three tiers: RGI Explain, which turns complex metrics and calculations into plain-language insight; RGI Assist, which drafts workflows and models scenarios for human review and sign-off; and RGI Workforce, the longer-term autonomous engine designed to execute routine, governed tasks at scale.

At an operational level, RGI can automate data aggregation and run intelligent data quality checks. At a strategic level, it can transform planning into a continuous, automated capability by autonomously exploring scenarios to identify optimal capital strategies, in contrast to the periodic, high-effort approach used today – always with a human in the loop for judgement calls.

RRH Ascend has been designed with this future in mind, providing the necessary building blocks for STR and supporting the industry’s shift from reactive regulatory reporting towards proactive capital management.