FRA Partner Gerben Schreurs on overcoming data access challenges in suptech implementation
FRA’s Gerben Schreurs was quoted in The Fintech Times, addressing the significant challenges in implementing supervisory technology (suptech) tools within the regulatory landscape.
The extract below is published in The Fintech Times.
Hurdles to overcome
Gerben Schreurs, Partner at Forensic Risk Alliance, breaks down the largest challenge facing the implementation of suptech tools: “The biggest challenge for suptech would be the direct access to the underlying data."
“Currently, supervision is still dependent on submissions from banks that have undergone review by subject matter experts to reflect the reality. This ensures a certain level of quality.
“If suptech is used for direct access to the underlying data (e.g. credit book for assessing large exposure limits) there is a strong dependency on the quality of the underlying data and the variety of the different institutions’ systems.
“If this hurdle would be overcome (using proven data standardisation methods) the biggest impact would be the opportunity for timely detection of potential issues by the supervisor and benchmarking capabilities across institutions to detect anomalies that can impact financial stability.”