RegTech and SupTech: Disruptive Technology in Reporting, Regulation and Supervision

Klaus Loeber, Head of Oversight, European Central Bank

• The state of the start of national and international regulatory and supervisory regimes
• Key political and economic forces shaping the work of regulators and supervisors
• Unavoidable risks, critical challenges and emerging opportunities
• Discussion: How to supervise technological innovation?

Kimmo Soramäki, Founder and CEO, Financial Network Analytics and founding Editor-in-Chief, Journal of Network Theory in Finance

• Evolution of financial, regulatory and supervisory technology
• The impact of RegTech and SupTech on the financial services industry
• Overview of 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

Nick Vaughan, Data Analytics and Modelling, Bank of England and Adrian Waddy, Designer, Technology Delivery, Bank of England

• New applications of open source technologies in data collection, management and analysis
• Overview of key models and analytics frameworks
• Tips for management of sensitive issues in the areas of security standards and confidentiality
• Case study: Key features of the Bank of England’s new data hub architecture

• Key features of effective risk-based supervision frameworks and strategies
• The impact of APIs (Application Programming Interface) and software platforms on regulatory value chain
• The role of Machine Learning, DLT and Cloud in market surveillance and risk prediction
• Tips for effective management of sensitive issues in the areas of security standards and confidentiality

• The impact of disruptive technological innovation on the evolution of FMIs
• Applications of advanced technology in the areas of Network Analytics and Agent Based Models for FMI oversight
• Tips for collecting and effectively combining qualitative and quantitative statistics
• Case study: Making the most of stress testing scenarios and simulations

Per Nymand-Andersen, Adviser, European Central Bank

• Overview of emerging trends in regulatory Big Data
• Opportunities and challenges of Big Data applications for financial stability and systemic risk analysis
• Examples of good practice in combining Big Data from the internet, administrative and commercial sources
• Case study: European Central Bank’s use of Google search data in autoregressive now-casting models

• Strategies helping innovation comply with legal and regulatory requirements
• Issues of funding and resourcing
• Potential for cross-jurisdictional cooperation
• Case study: FCA’s regulatory sandbox – success stories and steps to be avoided

Brian Knight, Senior Research Fellow, George Mason University

• Overview of policies and approaches to regulation and supervision of FinTech
• Examples of strategies, frameworks and indicators helping to balance the support for innovation with consumer protection
• Implications for resourcing and institutional organisation of central banks and regulators
• Discussion: Successes and challenges from the delegates’ home jurisdictions

Kimmo Soramäki, Founder and CEO, Financial Network Analytics and founding Editor-in-Chief, Journal of Network Theory in Finance

• Key financial crime risks of the digital era
• Examples of Blockchain and Machine Learning applications in KYC and KYCC
• The role of international and public-private cooperation and coordination
• Hands-on exercise: automated vs. manual Fraud and AML investigation

Gareth Peters, Chair Professor for Statistics in Risk and Insurance Department of Actuarial Mathematics and Statistics, Heriot-Watt University, Edinburgh

• Methods and practices for combining available technologies and digital platforms for visualising different types of systemic risk
• Tips to effectively analyse complex financial data and filter signal from noise
• Management of key operational and ethical risks and challenges
• Hands-on exercise: Mapping of cross-holdings between financial institutions and identification of early warning indicators

Kimmo Soramäki and Gareth Peters, Chair Professor for Statistics in Risk and Insurance Department of Actuarial Mathematics and Statistics, Heriot-Watt University, Edinburgh

• Key features of Distributed Denial of Services (DDoS) attacks
• Implications for the work of central bankers, regulators and supervisors
• Applications of advanced technology in identification on DDoS attacks
• Hands-on exercise: detection of anomalies in cyber networks

Kimmo Soramäki, Founder and CEO, Financial Network Analytics and founding Editor-in-Chief, Journal of Network Theory in Finance

• The state of the art of machine-readable regulation
• Opportunities and challenges for risk-based supervision, data quality assessment, and closing of the gap between regulatory intention and interpretation
• The emerging role of cognitive compliance
• Discussion: Does machine-executed regulation represent a realistic and desirable goal?

Fouad El Berkani, former Technical Specialist, Luxembourg Commission for the Surveillance of the Financial Sector

• Overview of areas where central banks and regulators need technical agility
• Examples of strategies, frameworks and indicators to assess suitability and needs of technological toolkit
• Tips for selection and coordination of in-house solutions with the outsourced ones
• Case study: Setting-up a FinTech/RegTech department

Led by the chair Kimmo Soramäki

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