

As regulatory reporting challenges intensify, central banks around the world are increasingly turning to RegTech and SupTech to bolster their supervision capabilities.
A 2024 survey by Central Banking highlights the growing trend among financial authorities to adopt these advanced solutions to streamline operations and improve oversight.
The survey included 13 central banks and two supervisory authorities from various global regions, providing a broad perspective on the adoption of these technologies. The distribution of participants is as follows: Americas with five participants (33%), Asia Pacific and the Middle East with three each (20% each), and Africa and Europe with two each (13.3% each).
Key findings from the survey reveal that just over half of the 15 respondents are actively using RegTech and SupTech, with one central bank in the midst of implementing the technology. These tools are proving crucial for efficient data collection, validation, analysis, and sharing, facilitating rapid identification and resolution of emerging issues, and supporting preventative measures.
Artificial Intelligence (AI) and machine learning are particularly recognized for their ability to augment human intelligence across various analytical processes, including descriptive, diagnostic, predictive, and prescriptive analyses. Practical applications noted include monitoring patterns in business performance related to liquidity and profitability, which aids in proactive regulatory interventions.
Despite the enthusiasm for these technologies, the survey uncovered challenges related to data standards, which vary significantly among the central banks and financial authorities, even within similar geographies. Additionally, leveraging cloud services has been identified as a beneficial strategy to accommodate the increasing needs for data storage and computational power for analysis.
The development of a structured institutional strategy for integrating RegTech and SupTech remains a significant hurdle. As technology advances and the financial markets expand in complexity and scale, central banks and regulators are pressed to continually evolve their strategies to keep pace with the advancements.
Download the survey here.
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