HYPER, HYPER,….., HYPE Cycle

Andreas Weller, Head of IT

XBRL Europe, Frankfurt 6 June 2017

HYPER, HYPER

HYPER, HYPER,….., Hype Cycle 2

The Hype Cycle

HYPER, HYPER,….., Hype Cycle 3

The Hype Level

HYPER, HYPER,….., Hype Cycle 4

• CRDIV Regulation• Need for Standardisation and

Harmonisation along supervisory reporting

• Open Standard,…,XBRL?• To be clearer as the regulation text

(DPM)• Automatic validation• To support the traditional users =

paper forms (templates)• Proportionality

The Hype level = the wishful thinking

The Hype Maturity

HYPER, HYPER,….., Hype Cycle 5

The Hype Maturity = the reality of engineering

• Regulation is a complex process• Give the CA’s the choice in

technology• Very complex content and significant

increase• Standard was not fully approved

(Table Linkbase)• High costs on niche technology

provider

The Hype Maturity (Business Maturity)

HYPER, HYPER,….., Hype Cycle 6

-10

0

10

20

30

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Mill

are

s

Changed

Retained

Added

Deleted

The Hype Cycle

HYPER, HYPER,….., Hype Cycle 7

The adoption of XBRL standard:• 1.0 REC Table Linkbase specification, • 1.0 Taxonomy Package specification,• Extensible Enumerations specification

The content changed only minimal in the last 2 release

The sample will be extended to have full coverage of CRDIV financial institutions

Providers get stable business grounds

The Hype Cycle

HYPER, HYPER,….., Hype Cycle 8

First generationProducts, high price,lots of customisationneeded

Supplier and CA’sprofilation

Activity beyond early adopters

Suppliers consolidationand failures

Less then 5 % of the potential audience Has adopted fully

Second generation products And services

Other markets adopt significant,3rd generation products are coming up

High-growth adoption20 to 30 percent of the potential audience has adopted COREP and FINREP in XBRL on all levels

Use of XBRL and EBA Taxonomy

EBA XBRL orvariant

No (localformats)

Other XBRL

XBRL usage at 1st level – 2017+rumours

9

The Hype Cycle Traps

HYPER, HYPER,….., Hype Cycle 10

The Hype Cycle Opportunities

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The "Double Peak" of Hype Triggered by Meaningful Improvements and Adoption

HYPER, HYPER,….., Hype Cycle 12

• Adoption of SSM onFINREP/COREP• Fully compliance with the XBRL standard• More nations worldwideare adopting XBRL• Higher rate of 1st level Supervisory reporting inFINREP/COREP• More requests in other Ecosystems to adopt XBRL

The Release of June 2017, Release 2.6

HYPER, HYPER,….., Hype Cycle 13

• Adoption of Regulatory changes• First release which is fully in line with theactual XBRL specs (huge effort to be visionary In XBRL and at the same moment adopt at the same time to the standard in different release cycles)• A significant lead time to adopt• Very smooth, no communication peak or hype, it

gets regular• Change from EBA in mind-set from innovation to

standard release

EBA framework roadmap

14

Taxonomy TaxonomyNormal release Technical changes only

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

COREP 2.3.0

DPM 2.7

SBP 1.0.4

DPM 2.6

SBP 1.0.3FP 1.0.3AE 1.0.2

FINREP 2.1.5

2017 2018DPM 2.5

FINREP 2.2.0 (IFRS 9 Exposure Draft)

FP 1.0.4AE 1.0.3

COREP 2.2.3

FINREP 2.1.6FINREP 2.2.1

DPM 2.8

SBP 1.0.5FP 1.1.0

2019Q1 Q2 Q3 Q4

FINREP 2.2.2

COREP 2.3.1COREP 2.2.2

AE 1.0.4FP 1.0.5

REM 1.0.0

You are,…….., the ones to bring it into practice

European Banking AuthorityHead of IT

Email: andreas.weller@eba.europa.eu

Twitter: @bennyw2004