State of Suptech report 2022
The State of SupTech Report 2022 presents insights on the current state of the digital transformation of financial supervision worldwide, providing a global snapshot across several facets of suptech, including underpinning digital infrastructure and technologies, supported supervisory use cases, approaches employed for developing and deploying suptech applications, and the related challenges and risks.
The Report includes insights derived from engagement with 146 financial authorities who are developing and implementing supervisory technologies, and establishes a baseline from which to track the progress and impact of suptech adoption allowing financial authorities across the world to benchmark the progress of their suptech initiatives. By also surfacing key insights from the nascent and rapidly growing industry of suptech vendors, the report advances the understanding of the suptech ecosystem depicting a 360-degree view of the marketplace and its foundational elements.
To facilitate more granular analyses of these macro trends, the Report introduces a novel “SupTech Taxonomy,” as well as a “SupTech Generations 2.0” framework, to classify and assess supervisory use cases, technologies, data science tools, and conversations across the ecosystem in a standardized and structured manner.
The Report surfaces many insights, such as the following list, which is by no means exhaustive:
1. Suptech is happening. Most financial authorities have already engaged in suptech efforts. While suptech development is still at a nascent stage with room for growth, the survey results indicate that 71% of financial authorities are rising to the challenge as we see increased adoption of suptech solutions, strategies and roadmaps.
2. Suptech efforts remain in the experimentation stage. Initiatives are primarily focused on improving data collection and basic analysis. Most suptech applications in use fall into the first or second generation of data architecture, and mainly support data collection, as well as descriptive and diagnostic analytics.
3. Most suptech use cases centre around consumer protection and prudential supervision. 59% of financial authorities report suptech applications supporting consumer protection use cases, while 58% report suptech applications that support prudential supervision use cases.