The Use of Supervisory and Regulatory Technology

The Financial Stability Board (FSB) published a report on the use of supervisory (SupTech) and regulatory (RegTech) technology by FSB members and regulated institutions. The report highlights that technology and innovation are transforming the global financial landscape and presents opportunities and benefits, as well as risks and challenges for regulated institutions and authorities alike.

For authorities, the use of SupTech could improve oversight, surveillance and analytical capabilities, and generate real-time indicators of risk to support forward looking policymaking. For regulated institutions, the use of RegTech could improve compliance outcomes, enhance risk management capabilities, and generate new insights into the business for improved decision-making.
Yet, despite the opportunities of SupTech and RegTech, there could arise risks from the use of such technologies. The greatest concern outlined might be around resourcing, followed by concerns around cyber risk, reputational risk and data quality issues.

The full report can be found here.