Suptech and regtech

There is growing interest from financial institutions in the use of technology to satisfy regulatory and compliance requirements more effectively and efficiently (referred to as regtech) and from the official sector in the use of technology for regulatory, supervisory and oversight purposes (referred to as suptech).

Regtech and suptech solutions are emerging for a wide range of regulatory focus areas, including regulatory change tracking, fraud detection, know-your-customer (KYC), countering the financing of terrorism (CFT), conduct and prudential risk management, systematised regulatory reporting and associated auditable record-keeping.

Certain suptech solutions enable regulators to prepare and transmit machine-readable and machine-executable regulations to their regulated entities, which in turn could result in more automated regulatory compliance, lower costs and greater consistency in regulatory reporting.

Other suptech solutions are focused on achieving real-time risk alerts, thereby enabling supervisory teams to pivot attention towards pre-emptive rather than curative oversight, in turn possibly improving the resilience and stability of the broader financial system.

In sum, there are significant opportunities and potential collective benefits in making greater use of regtech and suptech. The BISIH intends to study this area through the development of suptech solutions as part of its project portfolio and by staying in step with regtech innovation through public-private interaction.

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