The Next Wave of Suptech Innovation: Suptech Solutions for Prudential & Market Conduct Supervision

The rapid expansion of fintech and digital financial services around the world has provided many benefits but has also presented supervisors with new challenges, including the need to oversee new financial services entities, protect millions of new users, and address new or enhanced risks including those related to AML/CFT and to consumers. Supervisors must often deal with these challenges with limited capacity and resources. In addition, the COVID-19 pandemic has created a new urgency for supervision and oversight to be able to be conducted remotely. It has increased pressure on supervisors to react faster, requiring tailored policy decisions to stabilize the financial sector and protect consumers.

This webinar will share highlights from two recently published technical notes from the World Bank covering these topics.

1. A Roadmap to Suptech Solutions: As the amount of information necessary to conduct proper identification of risks in financial sector keep growing - especially in a post crisis period - while acceptable reaction times for supervisors become shorter, the implementation of suptech solutions has become a key strategic priority for many supervisors. However, doing it right is not an easy task.
   To help financial sector supervisors forge their understanding of suptech solutions and provide practical information on how to implement them, the World Bank has recently launched a guide that outlines specific protocols on the development of suptech strategies, an overview of the different governance models used globally, and a step-by-step guide on the implementation of the strategy with a focus on technology for prudential uses.
   The presentation on this note will focus on the key aspects that should be considered by the supervisors before and during the implementation of suptech solutions.
2. The Next Wave of Suptech Innovation: Suptech Solutions for Market Conduct Supervision is intended to assist financial sector authorities seeking to leverage suptech for financial consumer protection. The note provides concrete examples of 18 innovative technology solutions being utilized for market conduct supervisory activities across 14 different countries in order to increase the efficiency and effectiveness.