Building a more diverse suptech ecosystem: findings from surveys of financial authorities and suptech vendors

FSI Briefs No. 23

Financial Stability Institute

Almost all financial authorities have ongoing suptech initiatives that are focused on four broad areas: data visualisation, regulatory reporting, financial risk assessment and supervisory automation.

Due to organisational, legal or infrastructure constraints, financial authorities rely mostly on internal resources in building suptech solutions and much less on private vendors or collaborations with other authorities. If financial authorities engage with suptech vendors, it is mainly with regard to developing regulatory reporting solutions.

Suptech vendors are generally optimistic about the future direction of the suptech market despite its inherently small size. However, they find it challenging to engage with financial authorities because they do not have a clear view of the authorities’ needs, complex procurement processes and organisational siloes.

Therefore, there is room to improve private sector involvement and collaboration with other authorities in the development and adoption of suptech solutions. This would entail facilitating transparency in suptech requirements, simplifying internal processes and establishing infrastructure and policies that are more conducive to secure collaboration.

Categories: Recommended Readings
Author: BIS