Regtech and Suptech in Central Banks survey

As regulatory reporting challenges continue to mount, central banks are increasingly adapting their internal systems to provide stronger supervision capabilities – specifically by adopting regtech and suptech solutions.

In the latest survey conducted by Central Banking in 2024, 13 central banks and two supervisory authorities across different regions shared their perspectives on the implementation of regtech and suptech solutions within their organisations.

Here's a snapshot of the participants:

• Americas: 5 participants (33%) 
• Asia Pacific: 3 participants (20%) 
• Middle East: 3 participants (20%) 
• Africa: 2 participants (13.3%) 
• Europe: 2 participants (13.3%) 

Key findings include: 

• Just over half of the 15 respondents are using regtech and suptech. One central bank is currently implementing the technology.
• Most financial authorities using regtech and suptech consider it essential for data collection, validation, analysis and sharing. It enables the identification and swift resolution of emerging issues as well as preventative action.
• AI and machine learning are widely viewed as having the potential to “augment human intelligence” across “descriptive, diagnostic, predictive and prescriptive analyses”. Use cases include detecting patterns in business performance in terms of liquidity and profitability, allowing for “more proactive” regulatory interventions.
• All central banks and regulators that use regtech and suptech said they relied on data standards during the data collection process. However, the standards showed variability between central banks and financial authorities, even within similar geographies.
• Cloud services can help meet growing data collection storage needs and provide computing capacity for analysis.
• Developing a clear and structured institutional strategy in regtech and suptech matters is a continuing challenge as technology advances and the financial market grows in size and complexity.