Hi SupTech Community,
Welcome to the 44th issue of the Cambridge SupTech Lab bi-weekly LinkedIn newsletter, a source for updates on recent innovations, breakthroughs, opportunities, upcoming events in the suptech field, and news from the Cambridge SupTech Lab team.
If you would like to flag any items for inclusion in the next newsletter, please email us at cambridgesuptechlab@jbs.cam.ac.uk. Occasionally, we email our global community of supervisors, data scientists, vendors, and suptech experts to share event invites, news, or new courses—subscribe here.
This edition includes news from the Abu Dhabi Global Market, Bank for International Settlements, Central Banking, European Anti-Money Laundering Authority, European Central Bank, Financial Conduct Authority, Financial Regulatory Authority, Financial Services Commission, Securities and Exchange Board of India, The National Bank of Kazakhstan, and others.
Ready to lead the future of financial supervision? Enrol in the Cambridge SupTech Lab’s financial supervision programmes. The SupTech Frontiers Programme (commencing 11 September 2025) and Practical Data Science in Financial Supervision Programme (beginning on 6 October 2025), from Cambridge SupTech Lab, Cambridge Centre for Alternative Finance, offer 6-week, immersive, online experiences drawing on real-world case studies and the Lab’s digital tools. Participants from the SupTech Frontiers course gain a comprehensive understanding of supervisory technologies, data-driven solutions, and risks across supervisory areas while those from the data science course gain the expertise to design data science roadmaps, assemble high-performing teams, and create innovative suptech solutions that address evolving supervisory challenges. Explore both programmes and secure your early bird discount (GBP 300 off with code EB300 before 15 August) here.
Central Banking & Technology
Cambodia’s securities regulator tests suptech system for enhanced derivatives oversight. The Securities and Exchange Regulator of Cambodia (SERC) is advancing its supervisory capabilities through final testing of a new IT system designed to streamline regulatory reporting for derivatives trading. On 29th July, stakeholders including central counterparties and derivatives brokers trialled the platform and provided feedback to enhance its effectiveness and user-friendliness before official launch. The suptech initiative represents part of SERC’s broader digital transformation strategy to modernise regulatory practices and strengthen oversight of Cambodia’s capital markets through integrated financial technology solutions. Read more here.
South Korea to combat voice phishing scams with artificial intelligence (AI) platform. The Financial Services Commission has unveiled an AI-powered anti-vishing platform enabling real-time data sharing between financial sectors, telecom providers, and investigative authorities. The system will operate two information categories: immediate sharing for instant account suspension and AI-analysed intelligence to identify suspicious patterns and prevent criminal activities in advance. Expected operational by year-end, the platform will enhance capabilities for nonbank financial companies while enabling new prevention services and targeted investigation strategies. Read more here.
Indonesia’s Financial Services Authority (OJK) launches integrated risk management system to strengthen financial supervision. The SI-GRC platform, dedicated to governance, risk, and compliance, consolidates previously separate risk management and internal control systems across work units, featuring interactive dashboards that provide real-time risk reports covering incident statistics and risk mitigation. OJK Chairman Mahendra Siregar emphasised the system will enable comprehensive risk management to strengthen the financial services industry’s resilience against global economic volatility while improving adaptive cyber risk management through continued infrastructure and human capital investment. Read more here.
Supervisors focus on digital risks as suptech use grows, new Central Banking benchmarks show. Central Banking’s inaugural supervision benchmarks 2025 reveals that supervisory authorities view digitalisation and digital transformation risks as top priorities for the next 12 months. A clear majority of institutions now use suptech solutions for data collection and validation, with AI use growing but remaining less widespread. However, adoption of newer global standards remains low, with high-income supervisors more likely to have regulations in place. The report also highlights supervisors’ growing recognition of non-bank financial institutions’ expanding role in the financial system. Read more here.
Financial Conduct Authority (FCA) identifies key building blocks for United Kingdom (UK) open finance following industry sprint. Over 110 stakeholders developed practical data-sharing use cases across financial wellbeing, growth, resilience, and consumer empowerment. Participants identified adaptive regulation, interoperable frameworks, standardised portable data, enhanced API standards, and AI-driven analysis as essential for a trusted ecosystem, with sustainable commercial models and cross-sector collaboration deemed crucial. The FCA will launch a Smart Data Accelerator to test high-impact use cases, conduct techsprints on SME finance and mortgages in the second half of 2025, and undertake foundational research into AI, blockchain, and cloud technologies. Read more here.
The Financial Services Regulatory Authority of the Abu Dhabi Global Market has published its 2024 annual report, showcasing a year of transformation, innovation, and regulatory engagement. Key achievements included introducing a dedicated framework for fiat-referenced tokens, enhancing banking supervision standards aligned with Basel Committee principles, and strengthening anti-money laundering controls that contributed to the United Arab Emirates’ removal from the Financial Action Taskforce (FATF) grey list. The authority also developed in-house and pilot tested several AI-powered tools including RiskAnalyser, Jisr, and RegBuddy to streamline authorisation and supervision processes. Read more here.
European Anti-Money Laundering Authority (AMLA) outlines 2025 priorities for enhanced AML framework. The EU’s AMLA has published its 2025 work programme, focusing on its operational launch phase with governance setup, staffing, and infrastructure development. Key priorities include preparing for direct supervision of high-risk obliged entities, working with national authorities to harmonise AML/CFT rule application across member states, contributing to a single rulebook for unified regulatory standards, and promoting suptech tools for enhanced supervision. The programme also emphasises strengthening international cooperation to combat cross-border money laundering and terrorism financing. Read more here.
Bermuda Monetary Authority (BMA) seeks assistant director to lead regtech and suptech innovation in financial supervision. This senior role requires a master’s degree in computer science, mathematics, or related field, plus ten years’ data analytics experience with five years at senior level, preferably in financial services regulation. The successful candidate will lead data governance, coordinate regtech and fintech implementation, champion safe generative AI use, manage business intelligence solutions, and represent the Authority at international regulatory meetings while developing key industry relationships. Read more here.
Basel Committee publishes literature review on supervisory effectiveness framework. Drawing from academic research, policy work, observed bank failures, and supervisory practices, the review defines supervisory effectiveness as the ability to promptly assess prudential risks, identify material shortcomings, and deploy supervisory tools and power to ensure timely remediation by banks. The study structures its findings around a “house of effectiveness” framework, covering enablers and impediments, three interdependent pillars of risk identification, remediation and enforcement, and collaboration and transparency, topped by supervisory culture and risk management. Read more here.
Kazakhstan’s digital assets regulatory sandbox launches with eight pioneer projects. The National Bank of Kazakhstan’s (NBK’s) inaugural cohort includes three tenge-backed stablecoin pilots, three tokenisation platforms, and two crypto over-the-counter exchange solutions. More than fifteen additional projects remain under active consideration as the sandbox continues accepting new applicants. NBK chief digital officer Binur Zhalenov confirmed the initiative allows projects to test and experiment with new digital asset technologies under regulatory oversight while helping authorities refine their regulatory frameworks. Read more here.
Egyptian Financial Regulatory Authority launches innovation sandbox for non-banking financial sector. The platform enables startups, financial institutions, and service providers to develop and test innovative digital financial services under regulatory oversight, ensuring compliance while fostering technological advancement. This initiative offers participants the opportunity to collaborate in a structured environment, shaping the future of the non-banking financial ecosystem through regulated innovation and groundbreaking fintech solutions. Read more here.
World Economic Forum white paper outlines quantum technology strategies for financial services. The Forum, in collaboration with Accenture, has published a white paper examining quantum technology applications in financial services through real-world case studies and industry engagement. The paper identifies six foundational pillars for realising quantum’s full potential: research and development, infrastructure enablement, public-private collaboration, entrepreneurship support, education and workforce development, and responsible deployment. These priorities aim to ensure the responsible and strategic integration of quantum technologies across the financial ecosystem. Read more here.
Denmark’s Central Bank paper explores Distributed ledger technology (DLT) integration to preserve central bank money settlement. Denmark’s National Bank has published an analysis examining how DLT could transform financial asset trading while maintaining the use of central bank money for settlement. The analysis explains the importance of central bank money, the potential use of DLT in the financial system, and the work of central banks to ensure settlement in central bank money in connection with systemic financial transactions based on DLT. Key messages include that the access of financial institutions to central bank money is essential, DLT can potentially streamline capital markets, and future expansion of the Danish settlement infrastructure will be done in collaboration with the ECB. Read more here.
Financial authorities’ central bank digital currency (CBDC) sentiment can prove contagious – Bank for International Settlements (BIS) study. Using large language models to analyse media and central bank publications across 15 economies, the researchers found that media sentiment tends to be more positive than central bank sentiment, particularly regarding retail CBDCs, though this gap has narrowed over time. The study also indicates that central bank CBDC sentiment generally has negative impacts on cryptocurrency returns and commercial banking stocks, suggesting investors view digital currencies as potential substitutes for existing private-sector payment providers, with effects varying between advanced and emerging market economies. Read more here.
Cambodia unveils 10-year securities market master plan to expand capital markets. The Securities and Exchange Regulator of Cambodia’s roadmap, launched on 16 July, proposes expanding listings, diversifying investment products, launching new financial instruments, and modernising regulatory frameworks while aligning with international standards in sustainable finance and digital innovation. The plan supports Cambodia’s broader economic agenda including Vision 2050 and the Sustainable Development Goals, responding to global trends in sustainable finance, financial technology, and regional cooperation. Read more here.
Central Bank of Italy publishes fintech classification methodology to support innovation. Building on its fintech sector support since 2017 through Canale Fintech, Milano Hub, and the Regulatory Sandbox, the central bank has developed a taxonomy for categorising fintech actors and services. The framework aligns with international standards and is structured across two dimensions: services and technologies. The classification aims to capture both horizontal and vertical aspects of fintech, including technologies used and target markets, to support responsible innovation in the sector. Read more here.
European Banking Authority (EBA) warns of rising ML/FT risks amid fintech compliance concerns. In its opinion paper, EBA reports that seventy percent of competent authorities in the European Union report high or increasing ML/TF risks in the fintech sector. EBA warns that rapid fintech growth may not have been accompanied by robust AML controls, as some providers prioritise customer acquisition over compliance. Key vulnerabilities include exposure to cybercrimes, inadequate outsourcing oversight, and poor customer due diligence, with many fintech firms lacking necessary expertise and governance structures to tackle ML/FT risks effectively. Read more here.
Researchers from top AI labs warn of losing the ability to understand advanced reasoning models. A group of 40 AI researchers, including contributors from OpenAI, Google DeepMind, Meta, and Anthropic, are sounding the alarm on the growing opacity of advanced AI reasoning models. In a new position paper, the authors urge developers to prioritise research into “chain-of-thought” (CoT) processes, which provide a rare window into how AI systems make decisions. They are warning that as models become more advanced, this visibility could vanish. Read more here.
United States president Donald Trump signs federal stablecoin regulation into law following congressional approval. The Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act) was passed by the House of Representatives 308 to 122 during “Crypto Week” on 17 July after Senate approval last month. The legislation requires stablecoins to maintain 100% reserve backing with liquid assets such as US dollars or short-term treasuries, alongside mandatory monthly public disclosures of reserve composition. The White House described the law as historic legislation that will strengthen the dollar’s reserve currency status while positioning America as the global leader in digital assets through enhanced consumer protection and regulatory clarity. Read more here.
Events
Federal Reserve to deliver capital planning and stress testing course in Costa Rica. The board of governors of the Federal Reserve System will conduct an intensive four-day course on capital planning and stress testing from 11-14 August 2025 at Costa Rica’s financial regulator SUGEF. Limited to two participants per institution, the course provides bank supervisors with comprehensive training on assessing organisational capital adequacy, stress testing methodologies, and Basel II Pillar 2 assessments. Participants will gain practical experience through detailed case studies covering risk profiling, capital plan quality assessment, supervisory monitoring perspectives, and corporate governance expectations for stress testing processes. Read more here.
European Central Bank (ECB) to host Supervision Innovators Conference 2025 on AI in Banking from 24-25 September. This invitation-only event will bring together global supervision innovators and banking representatives to explore the latest trends and developments in AI and innovation. The conference features panel discussions on AI adoption enablers, digital strategies, and next-generation technologies, alongside suptech innovation awards and breakout sessions. The initiative aims to foster collaboration between supervisory authorities and the banking sector in examining digital pathways for effective, efficient, and risk-based supervision. Read more here.
Securities and Exchange Board of India (SEBI) launches securities market hackathon at Global Fintech Fest 2025. SEBI, collaborating with BSE, CDSL, NSDL, and KFintech, has created a competition themed “Driving Innovation and tech oriented solutions in securities market.” Participants must develop digital-first solutions addressing fraud prevention, retail investor education and engagement, bond market liquidity improvement, or member compliance monitoring to empower retail investors and enhance transparency, efficiency, and accessibility. Winners will receive cash prizes and showcase opportunities, with selected solutions potentially receiving mentorship through the SEBI Innovation Sandbox. Read more here.
FITC in collaboration with the Centre for Finance, Technology and Entrepreneurship (CFTE) hosted an International suptech and regtech programme in Nairobi from 28 July to 1 August 2025. The high-impact programme brought together regulators, compliance officers, fintech operators, legal professionals, and pension experts to explore disruptive technologies in reporting, regulation, and supervision of digital financial services. Participants examined practical applications of suptech and regtech, AI, blockchain, big data, and cloud computing in compliance through expert-led sessions, case studies, and strategic field visits to regulatory innovation hubs. Read more here.
ASEAN regulators gather in Malaysia for technical workshop on suptech and digital asset regulation. The ACMF Technical Workshop, hosted by Securities Commission Malaysia, brought together regulatory experts from across ASEAN and beyond, including representatives from the Securities and Exchange Board of India, Monetary Authority of Singapore, Indonesia Financial Services Authority, Securities and Exchange Regulation of Cambodia, and Securities and Exchange Commission Thailand. The event featured comprehensive sessions covering suptech frameworks, digital asset regulation, and practical case studies including Project Guardian and Shariah-compliant digital assets. Read more here.
Nigerian Financial Intelligence Unit (NFIU) calls for AI-driven data intelligence to combat illicit financial flows. Speaking at the Federal Inland Revenue Service (FIRS) National Conference on Illicit Financial Flows (IFFs) held on 22-23 July 2025, NFIU’s Chief Operating Officer Muhammad Jiya highlighted how digital payment systems and fintech platforms are being exploited for illicit transactions, calling for a shift from reactive compliance to proactive “intelligence-by-design” frameworks. He proposed a dedicated fintech-FIRS-NFIU Joint Task Force for real-time data sharing and emphasised that beneficial ownership transparency and regtech and suptech solutions are urgent imperatives to secure Nigeria’s financial system. Read more here.
