Suptech: Disruptive Technologies in Reporting, Regulation and Supervision - main page Q3

Suptech: Disruptive Technologies in Reporting, Regulation and Supervision

Suptech: Disruptive Technologies in Reporting, Regulation and Supervision

 September 20 – 23

Chair: Klaus Löber, chair of the CCP supervisory committee at European Securities and Markets Authority (ESMA)

In 2021, disruptive technological innovation continues to transform financial systems whilst Covid-19 brings new threats to the regulatory and supervisory regimes that protect financial systems. Cryptocurrencies are forcing regulators and supervisors to take sides, cyber threats bring new dimensions to systemic risk, and digitalisation is generating revolutionary platforms for financial crime and fraud.

Proactive application of advanced technologies like machine learning or DLT also opens up unprecedented regulatory and supervisory possibilities. Regtech and suptech offer new tools and frameworks to accelerate risk-based reporting, monitor systemic risk as well as supervise financial institutions based on Big Data. Increasingly, central bankers recognise that in order to make the most of these emerging opportunities, significant change is needed: at methodological, technical and institutional levels.

This seminar, ‘Suptech: Disruptive Technologies in Reporting, Regulation and Supervision’ is designed to equip delegates with the tools to meet these current challenges facing central bankers, regulators and supervisors with an active interest in regulatory and supervisory technology.

Each day will feature three hours of expert-led live content to maximise the opportunity to share and learn. The course chair will ensure participants have opportunities to network throughout the programme.

APAC timezone: 1pm-4pm (SGT) | 6am-9am (BST) | 1am-4am (EDT)

Course agenda

Two weeks prior to your training course you will be emailed access to our content hub with course materials, including a trial to Central Banking if you are not already subscribed. There will be a combination of articles, reports and presentations that will contribute to two hours of preparation time for the live content. Presentations for the sessions will also be held here subject to the speaker approval.

Foundations for Risk Management in Regtech and Suptech

06:0006:15

Course introduction
Course introduction session led by the chair

06:00 - 06:15

  • Introductions and welcome from the chairperson
  • Overview of the training course
  • Discussion of the delegate expectations
Klaus Löber

Chair, CCP supervisory committee

European Securities and Markets Authority (ESMA)

06:1507:15

Overview of the foundations of regtech and suptech

06:15 - 07:15

  • Evolutionary journey of financial, regulatory, and supervisory technology
  • How has regtech and suptech impacted the financial services industry?
  • Identifying key technologies in the areas of DLT, big data analytics, machine learning and cloud computing
  • Examples of applications in regulatory reporting and compliance risk management

07:1507:30

Break

07:15 - 07:30

07:3008:30

Application of suptech in systematically important financial institutions

07:30 - 08:30

  • Overview of the D-SIB (domestically systemically important) and G-SIB (global systemically important) frameworks
  • Practical examples of the application of regtech and suptech for D-SIB and G-SIB identification and continuous oversight
  • What are the implications of cooperation between the regulator and the regulated?
  • Mitigating the challenges of cross-jurisdiction communication and coordination for effective supervision

08:3008:45

Break

08:30 - 08:45

08:4509:45

Outsourcing technology and managing potential risk

08:45 - 09:45

  • Identifying areas of outsourcing and related risks and concerns
  • Specific Covid-19 observations
  • How can exposure to these risks leave central banks vulnerable when acting as overseers/supervisors?
  • Requirements to resiliency and business continuity plans to prepare and manage these risks

Tools and Frameworks

06:0007:00

Understanding the world of digital money

06:00 - 07:00

  • Overview of the landscape of digital money
  • What is the central banks role within the digital money landscape?
  • Evaluation of wholesale and retail digital currencies, and their suitability for central banks to issue
  • Digital currency vs cash: can they work together, or will digital currency replace cash?

07:0007:15

Break

07:00 - 07:15

07:1508:15

Using big data for nowcasting macro-economic indicators

07:15 - 08:15

  • Outlining emerging trends in regulatory big data
  • Challenges of Big Data applications and potential use opportunities for financial stability and systemic risk analysis
  • Good practice for combining and using big data from various sources
  • Case study: use of Big data in autoregressive now-casting models

08:1508:30

Break

08:15 - 08:30

08:3009:30

Utilising software platforms and APIs in risk-based reporting

08:30 - 09:30

  • What key features are necessary for an effective risk-based supervision frameworks and strategies?
  • The impact of APIs (Application Programming Interface) and software platforms on regulatory value chain
  • Roles of machine learning, DLT and cloud in market surveillance and risk prediction
  • Best practice for effective management in security standards and confidentiality when dealing sensitive topics and material

Regulation, Ethics and Evolving Challenges in Fintech

06:0007:00

Regulating online lending: China’s P2P case study

06:00 - 07:00

  • Overview of tight vs light regulation of P2P platforms
  • Issues related to separation of information intermediation from financial intermediation in P2P
  • Classification of P2P like a bank or an investment fund
  • Implications for credit risk analysis

07:0007:15

Break

07:00 - 07:15

07:1508:15

Bigtech in fintech: the new focus of regulatory attention

07:15 - 08:15

  • Defining the features of the bigtech sector and entities
  • How has bigtech impacted financial services and technology providers?
  • Outline of local and cross-jurisdictional efforts focused on regulation and supervision of bigtech
  • Discussion: who are the bigtechs in the delegates’ home jurisdictions?

08:1508:30

Break

08:15 - 08:30

08:3009:30

The focus on regulating fintech

08:30 - 09:30

  • Overview of policies and approaches to regulation and supervision of fintech
  • Balancing the support for innovation with consumer protection: examples of strategies, frameworks and indicators used
  • Implications for resourcing and institutional organisation of central banks and regulators
  • Discussion: successes and challenges from the delegates’ home jurisdictions

Effective Application for Regtech and Suptech

06:0007:00

Successfully visualising systemic risk

06:00 - 07:00

  • Combining available technologies and digital platforms for visualising different types of systemic risk
  • Effective analysis of complex financial data and how to filter signal from noise
  • Managing the different operational and ethical risks which arise and the subsequent challenges they present
  • Hands-on exercise: mapping of cross-holdings between financial institutions and identification of early warning indicators

07:0007:15

Break

07:00 - 07:15

07:1508:15

Regtech and suptech for AML and anti-fraud

07:15 - 08:15

  • Key financial crime risks of the digital era
  • Exploring examples of blockchain and machine learning applications in KYC and KYCC
  • The role of international and public-private cooperation and coordination
  • Comparison of automated vs. manual Fraud and AML investigations

08:1508:30

Break

08:15 - 08:30

08:3009:00

Closing remarks and delegate action plans
Concluding session led by the chair

08:30 - 09:00

  • Summary of the course
  • Discussion of the observed trends and case studies
  • Application of learning points in the delegates’ home organisations
  • Preparation of action points
Klaus Löber

Chair, CCP supervisory committee

European Securities and Markets Authority (ESMA)

09:0009:15

Feedback forum
We will send a link in this session to the feedback form and would kindly ask that you help us improve the training product by completing the survey. We would also welcome any verbal feedback in this session.

09:00 - 09:15

Learning outcomes

By the end of the training course, participants will be able to:

  • Understand the foundations of regtech and suptech and how they are impacting central banks and financial services
  • Create actions to mitigate the challenges of suptech for effective supervision
  • Manage potential risks of outsourcing technology
  • Understand the role of central banks in the digital money landscape
  • Create a framework for managing challenges of regulating fintech and the use of big data

Klaus Löber

Chair, CCP supervisory committee

European Securities and Markets Authority (ESMA)