London, UK. March 2022: London-based analytics and simulation firm FNA has partnered with the Bank for International Settlements (BIS) Innovation Hub and the Monetary Authority of Singapore (MAS) to build a prototype of an integrated regulatory data and analytics platform that will provide powerful new capabilities to supervisors.
This pioneering project will allow the world’s central banks to assess the impact of emerging credit risks on the financial system by combining various data sources such as news feeds through a news scanning engine, contagion algorithms and interactive visualisations that will enable supervisors to react more timely and make better informed policy decisions.
Kimmo Soramäki, Founder & CEO of FNA and a former central banker, commented: “We are delighted to have partnered with the BIS Innovation Hub on such an exciting project. We know the transformative power of technology is helping the financial community understand risk and take meaningful action. Project Ellipse represents a step change for the global regulatory community to collaborate on common solutions that can future proof their data and analytical capabilities.”
Project Ellipse was conducted in two phases; the first focused on investigating how data-driven supervision could be enabled by machine-executable digital reporting, using a common cross-border data model. In the second phase, Ellipse demonstrated how advanced analytics such as network analytics, machine learning and natural language processing could be applied to unstructured data and granular reporting data on loans to understand correlations, risk propagation and analyse sentiment about borrowers, alerting supervisors in real time of issues that may require further investigation.
Soramäki, added: “Working worldwide with many government institutions, we are absolutely committed to global knowledge development in this space and fully support the supranational efforts that have underpinned Project Ellipse. We are excited to see this deployed and delivering real results for regulators.”
The BIS will launch an Ellipse collaboration community so that this solution can be shared and scaled across regulatory authorities around the world.
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FNA is a leader in advanced network analytics and simulation.
FNA’s software is used to uncover hidden connections and anomalies in large, complex datasets, to predict the impact of stress events, and to optimally configure financial systems and infrastructures.
FNA is trusted by the world’s largest central banks, government authorities, commercial banks and financial infrastructures.