Technology and Banking Supervision connected

On September 14-15, 2022, the European Central Bank (ECB) conducted a Supervision innovators conference. The event, being held for the third time already, brought together leading global supervision innovators to foster collaboration, share experiences and showcase cutting-edge tools. 

SupTech reimagined

As per Elizabeth McCaul, Member of the Supervisory Board of the ECB, establishing a digital culture and training staff in advanced technologies is crucial to fostering digital transformation. Digital culture encourages innovation and facilitates the process of adopting new technologies. 

Addressing challenges  

The growing complexity of financial institutions' operational environment calls for digitalisation and collaboration on the supervisory side. Recognizing an evolving need to innovate, supervisors increasingly move from the manual processes, legacy systems and likewise mindsets. Limited use of emerging technologies gives a limited line of sight, while limited collaboration between teams leads to oversights – one of the main rules that supervisors have embraced on the way of digitizing and improving their processes.  

The main goal now is building a future-proof IT landscape with SupTech solutions embedded within ECB and NCA systems. For this reason, the need for SupTech tools and IT systems across European banking supervision is currently being investigated. This includes simplified data flows, better-connected systems and shared solutions. We are looking into the feasibility of scaling up ECB or local NCA solutions to the level of European banking supervision as a whole. 

These ambitious efforts require a huge amount of collaboration across authorities and business areas. In line with the innovation model, a team of supervisory and IT experts from the ECB and NCAs will define a road map and concrete action points for achieving a shared IT landscape. Relying on the innovation ecosystem in the process, we are moving towards digitally enabled banking supervision in Europe. 

While investigating approaches to successful digital adoption, supervisors focus on the areas of addressing digital transformation in the financial market, rethinking supervisory data collection, advancing supervisory reporting and scaling up SupTech solutions to facilitate and strengthen European banking supervision. 

At BR-AG, we work in the regulatory and supervisory space, bringing digitalisation and innovation into practical actions while simultaneously finding more efficient ways to derive value from regulatory reporting activities. 

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