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

SupTech - main page

SupTech: Disruptive Technologies in Reporting, Regulation and Supervision

March 8 - 11

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.

US timezone: 8am-11am (ET) |1pm-4pm (GMT) | 9pm-12am (SGT) 

SupTech: Disruptive Technologies in Reporting, Regulation and Supervision agenda 2021

Foundations for risk management in Regtech and Suptech

13:0013:15

Course introduction
Course introduction session led by the chair

13:00 - 13:15

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

Chair of the CCP Supervisory Committee

ESMA

13:1513:45

Overview of the foundations of RegTech and SupTech

13:15 - 13:45

  • 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
Douglas Arner

Kerry Holdings Professor in Law

University of Hong Kong

Douglas W. Arner is the Kerry Holdings Professor in Law and Director and co-founder of the Asian Institute of International Financial Law at the University of Hong Kong, as well as Faculty Director and co-founder of the LLM in Compliance and Regulation, LLM in Corporate and Financial Law, and Law, Innovation, Technology and Entrepreneurship (LITE) Programmes.

In 2020 he was awarded an inaugural Hong Kong Research Grants Council Senior Fellowship to study the role of digital finance in financial inclusion and the UN Sustainable Development Goals. Douglas has published eighteen books and more than 200 articles, chapters and reports on international financial law and regulation, most recently Reconceptualising Global Finance and its Regulation (Cambridge 2016) (with Ross Buckley and Emilios Avgouleas) and The RegTech Book (Wiley 2019 (Janos Barberis and Ross Buckley).

He is a Senior Visiting Fellow of Melbourne Law School, University of Melbourne, a non-executive director of NASDAQ and Euronext listed Aptorum Group and an Advisory Board Member of the Centre for Finance, Technology and Entrepreneurship (CFTE). Douglas was an inaugural member of the Hong Kong Financial Services Development Council (2013-2019) and Director of the Duke-HKU Asia America Institute in Transnational Law (2005-2016).

13:4514:00

Break

06:45 - 07:00

14:0014:45

Application of SupTech in systematically important financial institutions

14:00 - 14:45

  • 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
Manoj Singh

Assistant General Manager, Banking Supervision

Reserve Bank of India

Manoj Kumar Singh is a central banker with more than 14 years of experience, working currently in the area of supervision and supervisory policy development with Reserve Bank of India. His areas of expertise include risk-based supervision, fintech, regtech/suptech, with proper balance on both the challenges and opportunities.

14:4515:00

Break

07:45 - 08:00

15:0015:45

Outsourcing technology and managing potential risk

15:00 - 15:45

  • Identifying areas where outsourcing can be possible within bank functions
  • Discussion of 3rd, 4th, and 5th party outsourcing risks  
  • How can exposure to these risks leave central banks vulnerable when acting as supervisors?
  • Implementation of resiliency and business continuity plans to prepare and manage these risks

Tools and frameworks

13:0013:45

Understanding the world of digital money

13:00 - 13:45

  • 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?

13:4514:00

Break

06:45 - 07:00

14:0014:45

Using Big Data for nowcasting macro-economic indicators

14:00 - 14:45

  • 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

14:4515:00

Break

07:45 - 08:00

15:0015:45

Utilizing software platforms and APIs in risk-based reporting

15:00 - 15:45

  • 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 machinelLearning, 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

13:0013:45

Regulating online lending: China’s P2P case study

13:00 - 13:45

  • 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
Herbert Poenisch

former Senior Economist

Bank for International Settlements

13:4514:00

Break

06:45 - 07:00

14:0014:45

BigTech in FinTech: the new focus of regulatory attention

14:00 - 14:45

  • 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?
Anand Sinha

former Deputy Governor

Reserve Bank of India

Anand Sinha joined the Reserve Bank of India (RBI) in July 1976 and became deputy governor in January 2011. He was adviser in RBI up to April 2014 after demitting the office of deputy governor in RBI on January 18, 2014. As deputy governor, he was in charge of regulation of commercial banks, non-banking financial companies, urban cooperative banks and information technology, among others. He has represented the RBI in various Committees/Groups of the Bank for International Settlements (BIS), was on the G20 Working Group on Enhancing Sound Regulation & Strengthening Transparency and also a board member of the Securities and Exchange Board of India. He holds master’s degree in physics from the Indian Institute of Technology, New Delhi.

14:4515:00

Break

07:45 - 08:00

15:0015:45

The focus on regulating FinTech

15:00 - 15:45

  • 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
Peter Kerstens

Advisor

European Comission

Effective application for Regtech and Suptech

13:0013:45

Successfully visualising systemic risk

13:00 - 13:45

  • 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
Kimmo Soramäki

Founder and CEO

Financial Network Analytics

Kimmo Soramäki is the founder and CEO of Financial Network Analytics (FNA) and the founding editor-in-chief of The Journal of Network Theory in Finance. He started his career as an economist at the Bank of Finland where he developed in 1997 the first simulation model for interbank payment systems. In 2004 while at the research department of the Federal Reserve Bank of New York, Mr Soramäki was among the first to apply methods from network theory to improve our understanding of financial systems. During the financial crisis of 2007-2008 he advised several central banks, including the Bank of England and European Central Bank, in modelling interconnections and systemic risk. This work led him to found FNA in 2013 provide solutions to monitor the complex financial networks that play a continually larger role in the world around us. Mr Soramäki holds a Doctor of Science in Operations Research and a Master of Science in Economics (Finance), both from Aalto University in Helsinki.

13:4514:00

Break

06:45 - 07:00

14:0014:45

RegTech and SupTech for AML and anti-fraud

14:00 - 14:45

  • 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
Brandon Smith

Financial Crime, Defence and Intelligence Director

Financial Network Analytics

14:4515:00

Break

07:45 - 08:00

15:0015:30

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

15:00 - 15:30

  • 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 of the CCP Supervisory Committee

ESMA

Central Banking’s Post Training is a chair-led forum where participants can bring further questions or discussion points to group, after the live content and self-paced learning elements. What has worked, and what has not? Post Training focuses on questions that may have arisen since returning, the challenges of implementation and the setting of medium-term goals. Participants are encouraged to bring a short presentation, or questions on a particular topic, to gain the most from the discussions with peers.

11:0012:00

Post course catch up
Zoom link to be sent to you after the conclusion of the live content

11:00 - 12:00

Benefits of attending the post course catch up:

  • Developments in the area since the live content sessions, including new resource material
  • Questions arising since returning to the central bank
  • Challenges of implementation: where are the roadblocks?
  • Medium-term goals: what is realistic?
  • Establishment of group network to keep in touch peers and share best practices

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 of the CCP Supervisory Committee

ESMA