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The University of Cambridge Judge Business School (JBS) Centre for Alternative Finance SupTech Lab published its Annual State of Suptech Report, based on a survey of 64 national financial sector oversight authorities from around the world. It found that the adoption of Suptech continues, with 81% indicating their involvement in various suptech initiatives, an increase from the 71% reported in the 2023 report. However, most implementations remain largely in the early stages of a complete digital infrastructure.

While suptech is still in its infancy, it is gaining traction, with a significant number of suptech use cases found in the areas of misconduct analysis, reporting and data management. But most of these use cases are still experimental in nature. This helps to explain why only a limited number of external parties have so far been involved in the development of suptech tools. This underscores the need for further international coordination and collaboration to help open up the field of suptech.

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 finds that technology and innovation are transforming the global financial landscape, presenting opportunities, risks and challenges for regulated institutions and authorities alike. The report includes 28 case studies giving practical examples on how SupTech and RegTech tools are being used. https://www.fsb.org/2020/10/fsb-report-highlights-increased-use-of-regtech-and-suptech/

The G20 and the Bank for International Settlements Innovation Hub launched the G20 TechSprint Initiative to highlight the potential for new technologies to resolve regulatory compliance (RegTech) and supervision (SupTech) challenges. The BIS Innovation Hub published high-priority RegTech/SupTech operational problems and invited private firms to develop innovative technological solutions. The problem statements identify challenges in regulatory reporting, analytics, and monitoring and supervision, and have been developed from submissions received from Financial Stability Board member jurisdictions.

The Reserve Bank of India is drawing on new technology to support its supervision as it looks to keep up with the proliferation of fintech firms in the country, governor Shaktikanta Das said in recent remarks.

The Bank for International Settlements Financial Stability Institute published a paper that takes stock of 71 suptech tools used for prudential supervision in 20 jurisdictions and explores the benefits, risks and implementation challenges. It found that more than half of the tools assess mainly qualitative data, underscoring the importance of analyzing textual information in prudential supervision. The remaining tools are split between those that analyze mainly quantitative data and others that scrutinize both quantitative and qualitative data. Despite these variations, all tools aim to extract deeper supervisory insights or to improve supervisory efficiency.

The Financial Stability Board published a letter from its Chair Randal K. Quarles to G20 Finance Ministers and Central Bank Governors ahead of their meetings in Riyadh later this week. The letter notes that the global financial system is constantly facing new challenges. Technology is changing the nature of traditional finance; the non-bank sector has grown and requires deeper understanding and coordination among the supervisory and regulatory community. Pressures that can lead to market fragmentation exist. Concurrently, important supervisory and regulatory issues require attention, including stablecoins, cross-border payments, and "Tech" (particularly BigTech, RegTech, and SupTech).

Supervisory technology (SupTech) is the use of technology by supervisors to deliver innovative and efficient supervisory solutions that will support a more effective, flexible and responsive supervisory system. This note aims to define such a strategy and covers both prudential and conduct of business supervision, policy and interaction with entities, for insurance and occupational pensions sectors.

The Financial Action Task Force issued an official statement encouraging "the use of technology, including Fintech, Regtech and Suptech to the fullest extent possible" in light of social distancing measures, including for digital customer onboarding.

European supervisors are exploring the potential of supervisory technology (suptech) and developing new tools aimed at enhancing everyday supervision. Supervisors are interested in suptech's potential to make supervision more efficient and proactive, for example by speeding up data collection and analysis. Its emerging importance had become even more evident in the current crisis situation, which has substantially increased remote collaboration and off-site supervision.

The Bank for International Settlements (BIS) announced the three winners of the G20 TechSprint challenge. The hackathon-style competition was launched in April 2020 to highlight the potential for technology to resolve regulatory compliance (regtech) and supervisory (suptech) challenges. The winners, chosen by an independent panel of experts, addressed one or more of its three problem topics. FNA won the dynamic information-sharing category for their solution FNA Platform for Dynamic Information Sharing and Real-Time Analytics, Tookitaki won in the monitoring and surveillance category for their solution Crypto-currency AML Typology Repository Management and ISDA-REGnosys won the regulatory reporting challenge for their solution Consistent Regulatory Reporting via the Common Domain Model.

The Bank for International Settlements (BIS) and the Bank of England today launched the BIS Innovation Hub London Centre. The Hub's work program is currently focused on the use of technological innovation in supervision and regulation (suptech and regtech); next-generation financial market infrastructures; central bank digital currency (CBDC); open finance; cyber security; and green finance. Work related to these themes is distributed across the various Hub Centres.

The Bank for International Settlements' Innovation Hub (BISIH) set out its work program, focusing on six key areas; suptech and regtech, next-generation financial market infrastructures, central bank digital currency (CBDC), open finance, green finance, and cyber security. The CBDC theme will include a proof of concept platform using multiple wholesale CBDCs to explore the feasibility of faster and cheaper cross-border payments, and a technological research project and associated prototype(s) for tiered retail CBDC distribution architectures.

The Bank for International Settlements (BIS), Danmarks Nationalbank, Central Bank of Iceland, Norges Bank and Sveriges Riksbank today launched the BIS Innovation Hub Nordic Centre in Stockholm. The BIS Innovation Hub's work programme is currently focused on six areas: suptech and regtech; next generation financial market infrastructures; central bank digital currencies; open finance; cyber security; and green finance. Work related to these themes is spread among the various Hub Centres, although specific projects have not yet been finalised for the Nordic Centre.

Topics under consideration for the work agenda include central bank digital currencies, global stablecoins, payment innovations, the impact of big tech on financial intermediation, regtech and suptech, fast-paced electronic markets, and digitalisation of trade finance.

"The Monetary Authority of Singapore has started using an advanced data science tool named Apollo to help enforcement officers detect misconduct in financial markets, the central bank said in its inaugural enforcement report."

This BIS paper argues that asset tokenisation and underlying distributed ledger technology (DLT) open up new ways of supervising financial risks. It then puts the case for "embedded supervision", ie a framework that allows compliance with regulatory goals to be automatically monitored by reading the market's ledger, thus reducing the need for firms to actively collect, verify and deliver data.

The World Bank Group and the Cambridge Centre for Alternative Finance published a survey containing responses from regulators in more than 110 jurisdictions around the world on their approaches (and challenges) to the regulation of peer-to-peer lending, equity crowdfunding, and initial coin offerings.

According to the report, 90 percent of regulators "mentioned benchmarking and lessons learned from other jurisdictions as key triggers prompting changes in regulation more frequently than any other trigger." The survey also found that less than a quarter of respondents formally regulate peer-to-peer lending and initial coin offerings, while less than 40 percent of respondents have frameworks in place to regulate equity crowdfunding. Respondents also noted that new innovations and models are stretching regulatory resources. Regulatory resources dedicated to equity crowdfunding and initial coin offerings since 2017 have grown by over one-third and one-sixth for peer-to-peer lending. The survey also questioned the extent to which "light touch" regulatory frameworks are applied across those three areas. Lastly, the study finds that low-income jurisdictions are catching up to high-income jurisdictions, especially in regard to the regulation of peer-to-peer lenders. Here, low-income areas "are almost three times as likely as high-income ones to review their regulatory frameworks for peer-to-peer lending (43% vs. 16%)." However, as the study further shows, low-income jurisdictions are far less likely to have active regulatory innovation initiatives in place (innovation offices, sandboxes, RegTech/SupTech programs).

The New York State Department of Financial Services announced a techsprint initiative to convene regulators and industry stakeholders to work towards a common goal of Digital Regulatory Reporting, which aims to give regulators instant access to data provided by firms under their supervision. The techsprint's first area of focus is virtual currency companies due to their advanced digital capabilities operating in this space. This techsprint will be the first of its kind in the virtual currency space.

The Monetary Authority of Singapore (MAS) has launched a S$35 million Productivity Solutions Grant (PSG) for the financial services sector to help smaller financial institutions adopt digital solutions for more streamlined data reporting to MAS. The grant is currently applicable to banks and will be subsequently expanded to include insurers and capital market intermediaries. The PSG provides funding support for financial institutions with no more than 200 employees, to adopt regulatory reporting solutions from pre-approved managed service providers.