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Leveraging technology to support supervisionChallenges and collaborative solutionsBenoit CoeureHead of the BIS Innovation Hub

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Covid-19 as a catalyst for change

The pandemic has changed the way we are working

A boost to digital payments…… and to digital finance?

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Regtech and suptech

Regtech

The application of financial technology (fintech) for

regulatory and compliance requirements and reporting

by regulated financial institutions.

Suptech

The application of fintechused by regulatory and

supervisory authorities for regulatory, supervisory and

oversight purposes.

Regtech and suptech are interlinked

Aim is to better inform authorities and financial institutions of the opportunities and threats in their efforts to improve the existing supervisory and risk management

toolkits.

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The BIS Innovation Hub

Explore the development of public goods to enhance the function of the global financial system

Serve as a focal point for a network of central bank experts on innovation

Develop in-depth insights into critical trends in financial technology of relevance to central banks

The Bank for International Settlements Innovation Hub was established in 2019 to foster international collaboration on innovative financial technology within the central banking community.

The BISIH’s mandate is to:

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Generations of technology

Di Castri, Hohl, Kulenkampff and Prenio (2019)

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Challenges for digital transformation

Mindset and buy-in

Competing for talent

Need for trusted partnerships

Experimentation and ‘failing fast’’

Risk and uncertainty

‘Black box’ model risk New players and regulatory silos

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Platforms add value by removing points of friction in collaboration

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Building trusted platforms of global collaboration: Techsprint

• First time a virtual hackathon of this global nature and scale is being conducted for regtechand suptech.

• Entire sequence of activities, from engagement and shortlisting to testing and selecting the best solutions, is conducted digitally on the cloud (APIX innovation platform).

• Cost efficient and effective approach to innovation as it built on pre-existing functionalities inherent in the innovation development platform.

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Opportunities for global collaboration and scale

Technology-driven innovation in financial services is accelerating, and will have major consequences for global financial systems and central banks.

Digital innovation has repercussions in multiple locations simultaneously.

Central banks and supervisors can achieve economies of scale by working together.

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A cloud-based real-time market monitoring platform

Trading activity

Market liquidity

Market risk

Historical data

Reference points

… EBS Market

… Refinitiv Matching

Government bonds

Proprietary CB data

Other

FX dataStreaming platform

Stream processingCloud architecture

Real-time financial data

Real-time dashboard

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Monitoring market conditions in real time

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The supervisor of the future

What impetus and changes are needed so that we can make that shift towards becoming supervisors of the future?