Modernizing Non-Performing Loan (NPL) Data Management: Supporting EBA Templates with Cloud Platforms

Enabling Transparency and Confidence in the Evolving NPL Market

The European market for Non-Performing Loans (NPLs) is undergoing a significant transformation. As banks, servicers, and investors seek to manage and transact NPL portfolios more efficiently, the need for standardized, high-quality data has never been greater. The European Banking Authority (EBA) has responded by introducing standardized data templates for NPLs, designed to reduce information asymmetry, improve data quality, and foster a more transparent and liquid secondary market. Publicis Sapient, in partnership with European DataWarehouse (EDW), has played a pivotal role in enabling this vision—delivering a modern, cloud-based data management platform that supports EBA NPL templates and sets a new standard for regulatory compliance and market confidence.

The Challenge: Bridging Data Gaps in NPL Transactions

Historically, the NPL market has been hampered by inconsistent data quality and fragmented reporting standards. This lack of transparency created barriers for potential investors, limited price discovery, and slowed the development of a robust secondary market. Recognizing these challenges, the EBA published standardized NPL data templates, providing a common set of fields for banks to report on NPL portfolios. The goal: to widen the investor base, lower entry barriers, and facilitate more efficient screening, due diligence, and valuation during NPL transactions.

However, implementing these templates at scale required a modern, flexible data infrastructure—one capable of collecting, validating, and disseminating large volumes of granular loan-level data in a secure, compliant, and user-friendly manner. This is where Publicis Sapient’s expertise in cloud transformation and regulatory data modernization came to the fore.

The Solution: Cloud-Enabled Data Repository for EBA NPL Templates

Publicis Sapient partnered with EDW to deliver the next phase of its digital transformation, specifically enhancing the platform to support the EBA’s NPL data templates. Leveraging a cloud-first approach, the solution provides a centralized, scalable repository for NPL data, enabling banks, servicers, and investors to:

Collect and validate NPL data in accordance with EBA guidelines, ensuring completeness, accuracy, and comparability across portfolios.
Familiarize market participants with the new templates through a cloud-based test data collection environment, supporting both residential mortgages and loans to small and medium-sized enterprises.
Automate data ingestion, validation, and quality checks, reducing manual effort and minimizing errors.
Disseminate standardized data to investors and regulators, supporting efficient due diligence and price discovery.

The platform’s cloud-native architecture, built on Microsoft Azure, delivers the agility and scalability required to adapt to evolving regulatory requirements and market needs. By adopting a modular, incremental modernization strategy, Publicis Sapient ensured a seamless transition from legacy systems, minimizing risk and disruption for EDW and its clients.

Impact: Raising the Bar for Transparency and Investor Confidence

The modernization of NPL data management has delivered tangible benefits for the European financial ecosystem:

Enhanced Transparency: Standardized, high-quality data enables investors to analyze and compare NPL portfolios systematically, reducing information asymmetry and supporting more accurate risk assessment.
Increased Market Liquidity: By lowering entry barriers and improving data availability, the platform widens the pool of potential investors and facilitates the development of a more active secondary market for NPLs.
Regulatory Compliance: Banks and servicers can confidently meet EBA requirements, reducing compliance risk and streamlining reporting processes.
Operational Efficiency: Automation and cloud scalability reduce the burden of manual data management, freeing up resources for higher-value activities.
Future-Proofing: The flexible, cloud-based architecture is designed to accommodate future regulatory changes and support additional asset classes as market needs evolve.

The Broader Value of Cloud-Based Data Repositories for Specialized Asset Classes

The success of the EDW NPL platform demonstrates the broader value of cloud-based data repositories in financial services:

Scalability and Performance: Cloud infrastructure enables the processing and storage of billions of loan-level records, supporting real-time analytics and rapid data access for all stakeholders.
Security and Compliance: Advanced cloud security features and automated compliance controls ensure sensitive financial data is protected and regulatory obligations are met.
Agility and Innovation: Modular, API-driven architectures allow for rapid adaptation to new data standards, asset classes, and market opportunities.
Cost Efficiency: By eliminating legacy infrastructure and leveraging pay-as-you-go cloud models, organizations can optimize costs and reinvest in innovation.

Why Publicis Sapient?

With a proven track record in regulatory data modernization and cloud transformation, Publicis Sapient is uniquely positioned to help financial institutions navigate the complexities of NPL data management and EBA compliance. Our partnership with EDW has not only delivered a future-ready platform for NPLs but has also set a benchmark for transparency, efficiency, and investor confidence in the European market.

As the NPL market continues to evolve, the institutions that thrive will be those that embrace modern, cloud-native data platforms—turning regulatory compliance into a catalyst for growth and innovation. Publicis Sapient stands ready to support your journey, delivering the technology, expertise, and partnership you need to lead in the new era of NPL transactions.

Ready to modernize your NPL data management? Connect with Publicis Sapient’s experts to discover how cloud platforms can future-proof your business and unlock new opportunities in the NPL market.