Suptech: Disruptive Technologies in Reporting, Regulation and Supervision

Why Attend

In 2021, disruptive technological innovation continues to transform financial systems whilst Covid-19 brings new threats to the regulatory and supervisory regimes that protect financial systems. Cryptocurrencies are forcing regulators and supervisors to take sides, cyber threats bring new dimensions to systemic risk, and digitalisation is generating revolutionary platforms for financial crime and fraud. Proactive application of advanced technologies like machine learning or DLT also opens up unprecedented regulatory and supervisory possibilities. Regtech and suptech offer new tools and frameworks to accelerate risk-based reporting, monitor systemic risk as well as supervise financial institutions based on Big Data. Increasingly, central bankers recognise that in order to make the most of these emerging opportunities, significant change is needed: at methodological, technical and institutional levels. This course, ‘Suptech: Disruptive Technologies in Reporting, Regulation and Supervision’ is designed to equip delegates with the tools to meet these current challenges facing central bankers, regulators and supervisors with an active interest in regulatory and supervisory technology. Each day will feature three hours of expert-led live content to maximise the opportunity to share and learn. The course chair will ensure participants have opportunities to network throughout the programme.

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Course Objectives

  • By the end of the training course, participants will be able to:
  • • Understand the foundations of regtech and suptech and how they are impacting central banks and financial services
  • • Create actions to mitigate the challenges of suptech for effective supervision
  • • Manage potential risks of outsourcing technology
  • • Understand the role of central banks in the digital money landscape
  • • Create a framework for managing challenges of regulating fintech and the use of big data

Target Audience

Central Bankers only

Foundations for Risk Management in Regtech and Suptech

Course introduction

  • Introductions and welcome from the chairperson
  • Overview of the training course
  • Discussion of the delegate expectations


Overview of the foundations of regtech and suptech

  • Evolutionary journey of financial, regulatory, and supervisory technology
  • How has regtech and suptech impacted the financial services industry?
  • Identifying key technologies in the areas of DLT, big data analytics, machine learning and cloud computing
  • Examples of applications in regulatory reporting and compliance risk management


Fintech and financial stability: implications and opportunities

  • Overview of key fintech applications
  • Key characteristics of effective frameworks for supervision of technological innovation
  • Implications and opportunities for central banks and their institutional organisation
  • Cooperation and coordination with the private sector
  • Case study: Ant Finance


Outsourcing technology and managing potential risk

  • Identifying areas of outsourcing and related risks and concerns
  • Specific cloud service observations
  • How can exposure to these risks leave central banks vulnerable when acting as overseers/supervisors?
  • Requirements to resiliency and business continuity plans to prepare and manage these risks


Tools and Frameworks

Regtech and suptech for digital money

  • Introduction to the world of privately issued cryptocurrencies
  • Outline of a central bank’s place within this landscape
  • Evaluation of wholesale and retail digital currencies, and their suitability for central banks to issue
  • Discussion of the importance of cash and whether central bank digital currency can be a complement or replacement of cash


Fintech and innovation: sandboxes, incubators and accelerators

  • Sandboxes, incubators and accelerators: a central bankers guide
  • Role and functions in innovation strategies
  • Tips for helping innovation comply with legal and regulatory requirements
  • Issues for funding resourcing cross-jurisdictional cooperation


Utilising software platforms and APIs in risk-based reporting

  • What key features are necessary for effective risk-based supervision frameworks and strategies?
  • The impact of APIs (Application Programming Interface) and software platforms on regulatory value chain
  • Roles of machine learning, DLT and cloud in market surveillance and risk prediction
  • Best practice for effective management in security standards and confidentiality when dealing with sensitive topics and material

Regulation, Ethics and Evolving Challenges in Fintech


Suptech for AML and anti-fraud

  • Recent financial crime trends
  • Synergies between AML efforts and cyber security
  • Machine learning for anomaly detection
  • Multi-source network analysis


Bigtech in fintech: the new focus of regulatory attention

  • Defining the features of the bigtech sector and entities
  • How has bigtech impacted financial services and technology providers?
  • Outline of local and cross-jurisdictional efforts focused on regulation and supervision of bigtech
  • Discussion: who are the bigtechs in the delegates’ home jurisdictions?


The focus on regulating fintech

  • Overview of policies and approaches to regulation and supervision of fintech
  • Balancing the support for innovation with consumer protection: examples of strategies, frameworks and indicators used
  • Implications for resourcing and institutional organisation of central banks and regulators
  • Discussion: successes and challenges from the delegates’ home jurisdictions

Effective Application for Regtech and Suptech


Application of suptech in systematically important financial institutions

  • Overview of the D-SIB (domestically systemically important) and G-SIB (global systemically important) frameworks
  • Practical examples of the application of regtech and suptech for D-SIB and G-SIB identification and continuous oversight
  • What are the implications of cooperation between the regulator and the regulated?
  • Mitigating the challenges of cross-jurisdiction communication and coordination for effective supervision


Regulating online lending: China’s P2P case study

  • Overview of tight vs light regulation of P2P platforms
  • Issues related to separation of information intermediation from financial intermediation in P2P
  • Classification of P2P like a bank or an investment fund
  • Implications for credit risk analysis


Closing remarks and delegate action plans

  • Summary of the course
  • Discussion of the observed trends and case studies
  • Application of learning points in the delegates’ home organisations
  • Preparation of action points

Implementation Workshop

Benefits of attending the Implementation Workshop:

  • Developments in the area since the live content sessions, including new resource material
  • Questions arising since returning to the central bank
  • Challenges of implementation: where are the roadblocks?
  • Medium-term goals: what is realistic?
  • Establishment of group network to keep in touch with peers and share best practices

This course has not been scheduled, however you can request for In-House training