Financial regulation is entering the digital age, converting tools and strategies from analog to digital design. In the next decade, this transformation will reach critical mass and do for regulation what digitization does for everything else—make it better, faster, and cheaper. Financial institutions and their regulators have always been active technology adopters. Both finance and...
Last year, as regulators across the world were grappling with the multiple effects of COVID-19 on their economies, one movement caught the attention of many of them: record-breaking volumes of consumer complaints. This trend, consistent in high-income countries such as the United States, was also observed in low- and middle-income countries such as Colombia. This marked increase...
Enhanced supervisory technology (SupTech) with strong governance and skilled human oversight could well have important benefits for financial regulators around the in efforts to increase economic stability in their nations and around the globe, said a report prepared for the G20. “SupTech could improve oversight, surveillance and analytical capabilities, and generate real-time indicators of risk...
Highly regulated industries like the financial services industry have faced ever-increasing regulatory compliance obligations. Technology, such as artificial intelligence (AI), that can be utilized to innovate the manner in which these organizations operate can lead to additional challenges for regulatory compliance, and the regulatory environment can drastically impact innovation in these sectors. Regulatory compliance is...
When the calendar turned to 2020, my first thought was about how futuristic the year sounded and what kind of interesting things it had in store. At that time, no one could possibly have imagined that some of those interesting things would be face masks, working from home, and wearing the same loungewear so often...
For many years, financial sector supervisors saw with skepticism the adoption of SupTech—essentially the use of technology-enabled solutions to increase the efficiency and effectiveness of supervisory activities. Many asked “why” they should be investing in these technologies, in a common first reaction to any process that will substantially impact the way things are done.Although some...
In the same way technology is changing the financial services industry, technology is also changing how the industry and supervisory authorities implement and enforce regulations.Today, an increasing number of supervisory authorities are turning to technology to support their work, leveraging so-called supervisory technology (suptech) applications to digitize report and regulatory processes. What is Suptech?Suptech refers to...
First some definitions: FinTech is the application of digital technology like software and hardware to improve the efficiency, effectiveness, and scope of financial services. These solutions can be applied to traditional financial services and create opportunities for new services and business models for Financial Institutions. SupTech is the application of digital technology like software and hardware to improve the efficiency,...