Hi SupTech Community,
Welcome to the 45th 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 Bank for International Settlements, Bank Negara Malaysia, CGAP, European Banking Authority, Financial Services Agency of Japan, International Monetary Fund, Italian Companies and Stock Exchange Commission, Macroeconomic & Financial Management Institute of Eastern and Southern Africa, Reserve Bank of India, Securities and Exchange Commission of Nigeria, U.S. Securities and Exchange Commission, and others.
Suptech Innovations
Japan’s Financial Services Agency (FSA) and Bank of Japan (BOJ) launch joint data platform to modernise bank supervision. Japan’s FSA and BOJ have commenced full-scale data collection through a new common data platform aimed at centralising supervision of the country’s financial institutions. The joint initiative enables regulators to collect high-granularity data from banks to enhance risk monitoring capabilities and reduce the industry’s reporting burden through improved data integration. The platform represents a novel framework for data collection and management that began regular operations in fiscal 2024, marking a significant step towards modernising Japan’s financial supervision infrastructure. Read more here.
Bank for International Settlements (BIS) Innovation Hub launches Project Noor to enhance artificial intelligence (AI) model transparency. The initiative, led by the BISIH Hong Kong Centre in collaboration with the Hong Kong Monetary Authority and United Kingdom Financial Conduct Authority, will prototype explainable AI techniques that convert complex model logic into plain language and intuitive visuals. The project addresses new regulatory demands for auditable and explainable high-risk financial AI by enabling supervisors. By combining explainable AI methods with risk analytics, the project aims to deliver a prototype through which supervisors can verify model transparency, assess fairness, and test robustness. Named “light” in Arabic, the prototype could deliver greater transparency for customers, consistent protection through modern supervisory tools, and privacy-preserving explainability checks for banks adopting new technologies. Read more here.
Central Banking & Technology
European Banking Authority (EBA) report reveals that suptech tools can significantly enhance European Union (EU) anti-money laundering supervision (AML/CFT). The report takes stock of ongoing innovation efforts by competent authorities in the EU and explores how these can support the effective implementation of the new EU AML/CFT framework. A comprehensive survey revealed that nearly half of the identified suptech tools are already in production, with authorities reporting tangible benefits including improved data quality, better collaboration, and more efficient risk detection. Although challenges such as limited resources, legal uncertainty, and data governance constraints persist, the findings suggest technology-driven approaches will be crucial for implementing the EU’s new AML/CFT framework as the Anti-Money Laundering Authority prepares to coordinate supervision at EU level. Read more here.
Italian Companies and Stock Exchange Commission (CONSOB) paper explores AI applications in financial supervision. The publication paper examines AI in supervisory activities, highlighting opportunities and risks of suptech implementation. The study concludes that AI can provide faster market analysis but must remain subject to human evaluation, functioning as “digital assistants” supporting decision-makers while ensuring full traceability and explainability. Based on CONSOB’s experiences and other supervisory authorities abroad, the publication emphasises that suptech adoption requires cultural transformation, new skills, new organizational structures, and robust data governance to meet digital ecosystem challenges and respect fundamental rights. Read more here.
United States (US) Securities and Exchange Commission (SEC) creates AI task force to enhance innovation and efficiency. The SEC has launched an AI task force to spearhead responsible AI integration across the agency’s operations, with the newly appointed Chief AI Officer leading the initiative. The task force will centralise efforts, enable internal cross-agency collaboration, and focus on AI applications that maximise benefits while maintaining governance. The initiative aims to empower staff with AI-enabled tools to augment capacity, accelerate innovation, and enhance efficiency in supporting the SEC’s mission to protect investors and maintain orderly markets. Read more here.
CONSOB and University of Trento develop AI prototype to combat green bond greenwashing. The prototype uses advanced technologies to verify whether corporate bonds labelled “green” meet claimed sustainability requirements by detecting misleading messages and analysing environmental claims in texts. Based on EU green bonds from 2013-2023, the prototype reduces analysis time from four hours to ten minutes compared to traditional sustainability report reviews. The project forms part of CONSOB’s Strategic Plan 2025-2027, representing a step towards supporting investor confidence, market integrity, and the transition to a sustainable economy. Read more here.
Financial institutions shift from real-time gross settlement (RTGS) simulation to digital twins for real-time payment system management. Financial institutions are moving beyond traditional simulation models to adopt digital twins — virtual replicas that integrate real-time transactional data and provide continuous monitoring of payment systems. Unlike episodic simulations offering static insights, digital twins serve as “always-on” platforms enabling ongoing monitoring and iterative scenario testing. Major institutions including Payments Canada, Bank of England, and Saudi Central Bank have adopted this technology to guide system upgrades, test new settlement cycles, and support regulatory compliance. Read more here.
International Monetary Fund (IMF) note reviews technology solutions for central bank digital currency (CBDC) limited connectivity. The IMF has published a note exploring CBDC implementation in environments with limited connectivity, emphasising offline solutions to enhance financial inclusion. The report examines scenarios including stored-value card systems and device-to-device payments that enable transactions without constant internet access, addressing key considerations such as operational risks and privacy issues. The IMF note highlights that no single architecture fits all use cases, advocating for continuous stakeholder engagement and adaptation to evolving technologies to develop resilient offline payment systems. Read more here.
Bank Negara Malaysia (BNM) releases AI discussion paper for financial sector. BNM has outlined its proposed approach for fostering responsible AI adoption across the financial sector to enhance consumer outcomes and broader policy objectives. The central bank is seeking written feedback on regulatory and development approaches, including suggestions for specific issues, areas requiring clarification, and alternative proposals for consideration by 17 October 2025. The initiative reflects BNM’s commitment to developing comprehensive frameworks for AI implementation while ensuring responsible adoption throughout Malaysia’s financial services industry. Read more here.
Research proposes AI-driven surveillance framework to address India’s Offer for Sale (OFS) information leakage. Research analysing 39 OFS cases on India’s National Stock Exchange (2012-2023) revealed concerning floor price information leakage, particularly affecting public sector undertaking companies. The study proposes a three-pronged surveillance framework including enhanced transparency measures, proactive rumour verification, and real-time AI/machine learning monitoring to combat market manipulation. Current surveillance frameworks appear insufficient to prevent sophisticated information leakage that creates unfair arbitrage opportunities and erodes investor confidence. Read more here.
Nigeria’s Securities and Exchange Commission (SEC) partners with Chainalysis to strengthen crypto fraud detection. The collaboration will leverage blockchain’s immutable ledgers to trace illicit transactions and track fund flows across networks like Bitcoin and Ethereum. Speaking at a joint webinar, the SEC’s Director-General Dr. Emomotimi Agama emphasised the urgency of coordinated action, citing Chainalysis data showing illicit crypto addresses received USD 178 billion globally over five years. The partnership coincides with the Investment and Securities Act 2025, which provides legal clarity for digital assets while enabling international cooperation, positioning Nigeria as a regional leader in regulated digital finance. Read more here.
New technical note explores generative AI applications in tax and customs compliance risk analysis. The International Monetary Fund (IMF) has published a technical note examining how generative AI can augment compliance risk analysis work for tax and customs administrations. The publication provides a conceptual overview of GenAI technology followed by four generalised use cases and experimental proofs of concept demonstrating the technology’s capabilities. The note offers basic implementation guidelines for administrations considering operational deployment and concludes with forward-looking statements on likely developments. Read more here.
Reserve Bank of India (RBI) committee proposes AI governance framework for financial sector. The committee has released 26 recommendations for developing AI capabilities in India’s financial sector while safeguarding against associated risks. The eight-member committee proposes establishing digital infrastructure for indigenous AI models, a multi-stakeholder standing committee, and a fund to incentivise homegrown AI development tailored for Indian financial services. Other key recommendations include integrating AI with existing digital platforms like UPI and designing audit frameworks. Read more here.
CGAP publishes technical guide offering digital credit risk management solutions for financial authorities and providers. This guide offers actionable solutions tested or adopted globally to identify, prevent, mitigate, and resolve key risks facing digital borrowers. It draws on real-world initiatives from over 40 countries carried out by regulators, providers, and other digital credit ecosystem actors, to tackle issues such as overindebtedness, fraud, data misuse, and inadequate redress mechanisms. It reveals that authorities are prioritising preventative measures including registration of digital lenders, and cross-agency collaboration on regulatory, market monitoring, and market intelligence-sharing efforts. Read more here.
Global progress in women’s financial inclusion masks persistent usage gaps. The World Bank’s Findex 2025 dataset shows 77% of women globally now hold financial accounts, narrowing the gender gap to 4%, with strong mobile money progress in Sub-Saharan Africa. However, significant usage gaps persist even where account ownership is equal, with women showing lower rates of formal saving, borrowing and digital payments due to barriers including limited smartphone access and economic participation. The research emphasises that meaningful progress requires moving beyond account access to address social norms, improve product innovation, collect gender-disaggregated data, and scale women-centric financial services to enhance economic agency. Read more here.
New Zealand’s Financial Markets Authority (FMA) targets AI, tokenisation and advice access. The FMA has outlined future priorities for New Zealand’s financial services regulation, emphasising AI oversight, tokenisation assessment, and improved advice accessibility. Speaking at the Future of Financial Services conference, FMA executive director for licensing and conduct supervision Clare Bolingford highlighted the regulator’s collaborative approach to fostering innovation while maintaining market confidence. The FMA is releasing a discussion document on blockchain’s role in financial products and addressing AI use to ensure outputs remain “reliable, explainable and contestable.” The authority’s fintech regulatory sandbox currently supports six pilot companies, reflecting its commitment to balancing innovation with consumer protection. Read more here.
Events
MyFintech Week 2025 highlights transformative forces in finance. The 4-7 August event in Kuala Lumpur brought together regulators, financial institutions, innovators, policy makers, academia and investors to explore digitalisation, sustainability and demographic shifts reshaping finance. Co-organised by Bank Negara Malaysia, Securities Commission Malaysia and industry partners, the event started with a series of high-level keynotes exploring innovation, inclusion and regulatory clarity. Key themes included iterative regulatory frameworks for digital assets, responsible innovation in emerging technologies, Malaysia’s fintech success stories, and exploring open finance, asset tokenisation and cybersecurity challenges. Read more here.
The Macroeconomic and Financial Management Institute of Eastern and Southern Africa’s (MEFMI’s) online macroprudential supervision workshop to take place between 18-21 August. The event targets middle-level officials from MEFMI countries’ financial authorities in a programme covering systemic risk identification, stress testing, capital buffers and countercyclical measures. Building on lessons from the global financial crisis and recent banking turmoil, participants will develop practical knowledge in macroprudential approaches focused on entire financial system safety. The workshop aims to enhance countries’ supervision frameworks through understanding of financial interconnectedness, policy design and inter-agency cooperation. Read more here.
The “Taxonomies and Scaling up Sustainable Finance” workshop to take place between 7-9 October 2025 in Singapore. This event, part of the ADBI-ADB Asian Climate Finance Dialogue, aims to improve understanding of climate-related disclosures and promote policy actions to boost climate finance while maintaining financial stability. The training workshop will address challenges in mobilising climate finance both domestically and internationally, provide an overview of sustainable finance instruments and relevant international policies, and explore taxonomies that align investments with climate goals. It will also cover tools for managing climate risks, scaling adaptation finance, and enhancing resilience, with content tailored to the needs of Asian financial markets. Read more here.
IMF offers AML/CFT risk-based supervision training in Paraguay. The week-long course will run from 13-17 October 2025 in Asuncion, targeting experienced officials from finance ministries, financial intelligence units, central banks, supervisory bodies, law enforcement agencies, and public-sector audit bodies. The Spanish-language training will focus on regional challenges including organised crime, examining how financial crimes impact macroeconomic stability and exploring effective AML/CFT measures through case studies addressing cross-border illicit financial flows and threats to economic stability. Read more here.
MEFMI hosts AI in financial regulation webinar. The 6th August session, lasting one and a half hours, explored critical themes including AI challenges such as bias and cybersecurity concerns, the EU AI Act as a global regulatory benchmark, and sovereign AI development reflecting national priorities. Participants discussed suptech innovation, frugal AI systems for resource-constrained environments, and the adoption of regulatory sandboxes and innovation hubs. The webinar explored how AI can enable smarter, data-driven financial supervision, and encouraged collaborative partnerships. Read more here.
