Perttu Korhonen and Matt Grasser will join FNA’s Suptech Broadcast on Thursday, 14 December, for a session focusing on the complementary capabilities of regtech and suptech. First, they will explore how integrated architectures optimise risk management and advance supervisory objectives. Second, they will discuss what skills industry professionals need to effectively take advantage of new technologies shaping the regulatory and supervisory landscape.

Session #9 of the Suptech Broadcast brought together Matei Dohotaru, Senior Financial Sector Specialist at World Bank Group and Julapa Jagtiani, Senior Economic Advisor and Economist at the Federal Reserve Bank of Philadelphia. Together, Matei and Julapa will discuss how suptech needs in advanced economies contrast to those in emerging markets and delve into global, collaborative suptech initiatives and their impact.

| Ramunas Baravykas, Director of Data and Statistics Department, CDC, Bank of Lithuania
| Jermy Prenio, Principal Advisor, Financial Stability Institution, Bank for International Settlements (BIS)

Technology innovation is rapidly transforming financial supervision.

Session #8 of the Suptech Broadcast brought together suptech specialists Jermy Prenio (Bank for International Settlements) and Ramunas Baravykas (Bank of Lithuania), who explored the emerging technology shaping the future of the suptech landscape.

Jermy and Ramunas drew upon their extensive hands-on experience to offer a global and EU perspective on key topics, including data analytics, cross-border collaboration and the proportionality and ethics of AI to offer insight into how central bankers and policymakers can take advantage of the opportunities suptech for more effective oversight.

In an era of rapidly evolving technology and ever-increasing cyber threats, the need to strengthen our defences and ensure the resilience of financial institutions has never been more pressing. These initiatives require regulatory authorities, supervisory agencies, and financial entities to proactively address cybersecurity risks and adopt robust measures to protect the integrity of our financial systems.

In this discussion, we delved into the critical topic of cybersecurity and digital resilience in the financial services sector, with a particular focus on the implications of the recently adopted EU frameworks, DORA and NIS2.

The session covered:

• The steps regulatory authorities and supervisory agencies must take to ensure the requirements set by DORA and NIS2?
• How DORA and NIS2 compare to similar initiatives around the world
• The necessary collaborative efforts among multiple jurisdictions to enhance cyber resilience in the financial services sector
• Whether the interplay between people, processes and technology in strengthens cyber security and enhances digital resilience within the financial services sector
• How supervisory technology can increase cybersecurity
• Best practices and lessons learned from other jurisdictions or industries that could be valuable in enhancing cybersecurity and digital resilience within the EU financial sector
• The future trends or developments you would like to see in the realm of cyber resilience for the financial sector

The regulatory landscape is rapidly evolving, but what benefits does innovation offer, and how can organisations achieve the right balance between embracing innovation and ensuring consistency with relevant regulatory frameworks?

In this session of the Suptech Broadcast moderated by Thomas Nilsson, guests Carmen Barandela (Bank of England PRA) and Johannes Turner (Austrian National Bank) focused on the challenges, initiatives and best practices in achieving efficient data flows, highlighting the importance of data consistency across financial institutions.

The session also explored the role of regulatory innovation in promoting a more effective, efficient and resilient financial system crucial for supporting economic growth as Carmen and Johannes shared their insights, experience and perspectives with us.

The session covered:

• The vulnerabilities that may lead to a systemic crisis
• The amplifiers and dampeners of cyber risk
• Key technological advantages and financial innovations in realigning activity regarding Financial stability analysis
• The considerations policymakers should make when it comes to designing and piloting a CBDC
• How central bankers and supervisors make the financial system more cyber resilient

Session #2 of The Suptech Broadcast featured guests Perrtu Korhonen (Qatar Financial Centre Regulatory Authority) and Clara Machado (Banco de la República), who joined FNA to explore how payments data analytics and anomaly detection have evolved over recent years, focusing on the integration of new datasets for RTGS Stress Testing.

Today, as new technologies and innovations continue to emerge with the potential to transform the financial system, such as CBDCs, we ask, what historical and modern lessons are shaping the future of CBDCs?

To answer this question guests John Kiff, Managing Director at the CBDC Think Tank and Harish Natarajan, Lead Financial Sector Specialist, Finance, Competitiveness & Innovation at The World Bank joined FNA for Session #6 of The CBDC Broadcast.

The session covered:

• The stability of the banking sector and consequences of instability
• Whether banks are likely to see declines in profits or increased funding costs when a new form of central bank currency arrives
• Why G7 economies are still in the Research & Development phase of their CBDC projects whereas small, emerging economies like The Bahamas, which seem to be leading the deployment of CBDCs
• Whether other nations will follow China in introducing a non-DLT-based retail CBDC
• What CBDCs promise and what they are likely to deliver

| Ludmilla Buteau Allien, Bank of the Republic of Haiti
| Dr Adolfo Sarmiento, Central Bank of Uruguay

There are many motivations for rolling out a CBDC, from achieving higher financial inclusion and higher transactional efficiency to preserving monetary sovereignty by compensating for the declining use of cash and by countering the entrance of new private forms of digital currencies.

Each country has a different set of features and objectives that make a CBDC’s design and roll-out a tailor-made process. Having heard about the challenge and motivation from a G7 perspective in Session #4 with the Bank of England and the Bank of Canada, we turn our attention to Latin America as we hear from Ludmilla Buteau Allien (Bank of the Republic of Haiti) and Dr Adolfo Sarmiento (Central Bank of Uruguay)

Clair Mills is currently, the Chief Operating Officer for the Prudential Regulation Authority (PRA), within the Bank of England. Clair is responsible for the PRA operations, this includes the delivery of the PRA’s Operating Strategy, Budget, Internal Communications and Investment Portfolio. Other areas of responsibility include managing Data innovation, Regulatory and Business Change, Workforce planning and Diversity and Inclusion.

Clair has over 20 years’ expensive financial services experience, operating at board level and leading successful strategic and transformational change in a number of complex organisations, having started her career in the Building Society and Retail Banking sector, before moving into Operational and Technological Change Management Consultancy.

Clair joined the Financial Services Authority in 2011 to lead the Internal Twin Peaks programme to transition to the PRA and FCA regulatory model, moving across to the Bank of England with the PRA.

In her current role, as well as providing the leadership, management and vision necessary to support the business and to ensure that the proper operational controls are in place. Clair is also responsible for driving a demand-led data approach for the PRA, this includes giving keynote speeches both in the UK and internationally on topics such as Regulatory Technology (RegTech) and how regulators can take advantage of the advances in technology in the work we do. Clair is one of the few senior women in Central Banking and Regulation that work in the sphere.

Alongside this role, Clair is a trustee for two charitable organisations, the Addington Fund and the Chartered Institute of Securities and Investments, where she also sits on the Audit and Risk Committee.

Clair’s home is a working farm in rural Devon, which she shares with her husband and son. Her passion since childhood is horses, together with helping out on the farm, this provides a great way to recharge batteries and is a very different challenge.

00:16: What is your background and how did you come to work in your current role?
08:39: Would you say that your current role is more FinTech, RegTech or SupTech oriented?
11:24: Do you think diversity is a problem in the industry anecdotally?
14:37: Has the lack of diversity affected your actions?
16:37: Why is diversity important especially in managerial positions and finance and technology?
19:34: Did you notice this diversity gap in your education or in entering the workforce or was there a time where it became more apparent to you?
21:20: Are there any steps we as a generation can take to minimise the gap?
25:20: How do you see the role of women in fintech evolving over the next few years?
26:26 What steps can younger generations of women interested in STEM take to be more proactive about creating changes?
28:43: What advice would you give to young women int arrested in finance or technology?

As well as a Senior Economic Advisor and Economist at the FRB Philadelphia, Julapa Jagtiani, is also a Fellow member of the Wharton Financial Institutions Centre, and a Central Bank Research Fellow at the Bank for International Settlements (BIS). At the Federal Reserve, Julapa has conducted research and participated in several supervisory policies and implementation projects, including Basel capital requirements for banks, CCAR bank stress testing, and more recently Fintech innovations and regulatory policies. She is a member of the Fintech Subgroup of the Risk Council. Julapa has published influential research articles in top finance journals. Her recent research has focused on issues relating to Fintech innovations, the roles of alternative data and AI/ML in the new financial landscape, small business lending, and various consumer finance issues. Jagtiani has a PhD in finance and an MBA from New York University’s Stern School of Business, where she held the Rockefeller Foundation Fellowship.

00:17: What is your current role and how did you start working in it?
04:45: Would you say that your role is currently more Fintech, Suptech or Regtech oriented?
06:53: What is your background and education and how does this relate to your role and the research you’ve done?
08:51: Do you think that there’s a diversity problem in the industry anecdotal speaking?
10:30: How has the lack of diversity affected your actions subconsciously or subconsciously?
13:21: Why is diversity important, especially in the financial and technology field?
14:37: Would you say that there’s any association between women and their skillsets as it pertains to different roles?
15:47: What steps can his generation take to minimise the gap that you’ve seen?
17:47: What advice would you give to young women interested in finance and technology?