A transformational shift in the volume, speed and variety of data is driving the innovative use of financial technology, leading to rapid changes in the financial landscape. At the same time, regulatory authorities still rely on the collection of template-based supervisory data, which has remained largely unchanged. Supervisors are faced with the challenge of needing to assess rapidly evolving risks to business models and technology-driven changes that may affect financial stability, with regulatory data that are infrequent and collected according to legacy frameworks.
In January 2021, the BIS Innovation Hub Singapore Centre and the Monetary Authority of Singapore (MAS) launched Project Ellipse. With the support of the Bank of England (BoE), the International Swaps and Derivatives Association (ISDA), Financial Network Analytics (FNA) and Accenture, Project Ellipse explores how technology solutions could enable supervision to be more forward-looking, insights-based and data-driven, using an integrated regulatory data and analytics platform. Importantly, the Ellipse prototype combines both structured and unstructured sources of data that are relevant to current events in real time. Advanced analytics are then applied to those integrated data sources to provide supervisors with early warning indicators, analytics and prudential metrics.
The BIS Innovation Hub’s Project Ellipse is a prototype that authorities can test in their own environments and which may help them to explore new solutions. It also presents an opportunity for the global regulatory community to further consider, explore and collaborate on common solutions to future-proof the data and analytical capabilities of supervisors.