This FinCoNet report examines the application of Supervisory Technology (SupTech) by market conduct supervisors. The report is based on survey responses collected from 21 authorities and covers both cutting-edge technology for enhanced supervision as well as the use of more traditional technologies in ways that facilitate innovative supervision methodologies. It highlights how supervisory authorities are leveraging technological innovations to enhance the efficiency and effectiveness of their oversight functions. The report is structured into key sections: an introduction to SupTech in market conduct supervision, an exploration of specific SupTech tools, and conclusions with key takeaways for supervisors.
The report reveals that most responding authorities have implemented or are considering a SupTech strategy, aiming to improve efficiency by automating labor-intensive tasks and enhancing data analysis capabilities. It categorizes SupTech tools into data collection, data analytics, workflow tools, and tools for developing conduct risk profiles or early warnings. Examples include the use of XBRL for data reporting, interactive visualizations, and advanced analytics for assessing supervisory data.
The report concludes by providing key takeaways for supervisors, emphasizing the importance of adopting SupTech tools to enhance supervisory processes. It suggests that by leveraging technology, supervisors can better adapt to the evolving financial landscape and improve their ability to protect consumers.
