#10: Suptech & Regtech: Advancing in Alignment

Suptech Broadcast

5 Nov

14th December 2023

With:

| Perttu Korhonen (Qatar Financial Centre Regulatory Authority)

| Matt Grasser (Cambridge Suptech Lab)

Guests Perttu Korhonen (QFCRA) and Matt Grasser (Cambridge Suptech Lab) join FNA to discuss the transition from reactive, manual supervision to integrated, data-driven architectures. The conversation highlights that for technologies like CBDCs or stablecoins to be safe, the underlying supervisory engines must be as sophisticated as the assets they regulate.

The session emphasizes the shift from monolithic systems to modular, containerized architectures that allow regulators to scale their oversight in real-time. Our guests also address the "Human-in-the-Loop" requirement—arguing that while AI can provide rapid recommendations, supervisory decisions must remain meaningful and explainable to human regulators.

The Session covered:

The Integrated Architecture: Moving beyond silos to create a unified data ecosystem where Regtech (industry-side) and Suptech (regulator-side) speak the same language.
Operationalizing AI: How machine learning and entity resolution are being used to move from "managing information" to "making decisions" based on automated risk assessments.
The Skills Gap: Identifying the specific data science and Python proficiencies today’s supervisors need to lead the transition to "Suptech Generation 4."
Digital Public Infrastructure: Exploring the concept of Suptech as a foundation for broader economic resilience and financial inclusion.
Supervisory Agility: How modular architectures enable regulators to adapt to fast-moving digital assets—like stablecoins and CBDCs—without rebuilding their core systems.
Transparency & Reasoning: Why algorithms used in supervision must be "glass boxes" that present their assumptions clearly to human decision-makers.

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