FSB Reports On Use Of Supervisory And Regulatory Technology

The Financial Stability Board ("FSB") reported on the risks and opportunities created by the use of technology by regulatory authorities to improve supervision ("SupTech") and by regulated institutions to improve compliance ("RegTech"). The FSB stated that the emergence of SupTech and RegTech follows a substantial increase in data availability and granularity, and the creation of better data infrastructures and technologies (e.g., cloud computing and application programming interfaces).

Based on survey data, the FSB concluded that most regulatory authorities had in place a SupTech innovation or data strategy - which represents a significant increase in the use of such strategies since 2016. The FSB found that SupTech use has increased for misconduct analysis and microprudential supervision, but has decreased as to market surveillance. The FSB stated that artificial intelligence applications are the most common deployment of SupTech strategies.