Lecture series
RegTech, SupTech and regulatory sandboxes
How technology changes the work of complying with rules and of supervising them: what RegTech and SupTech are and what they are used for, how lenders use technology for reporting, identity checks and monitoring, how supervisors collect and analyse data, how a regulatory sandbox works from entry to exit, and the other tools authorities use to support innovation. Five lessons, at the level of principles.
5 of 5 lessons published. Lesson 1 is free to read.
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- 01RegTech, SupTech and sandboxes: what they are and why they appearedThree terms appear whenever technology meets financial regulation. This lesson defines RegTech and SupTech as the Financial Stability Board does, explains why their use has grown, sets out what firms and authorities use them for, defines a regulatory sandbox and an innovation hub as the World Bank does, places Southeast Asia’s region among the others by the number of sandboxes, and shows with a worked example how exceptions-based supervision works.
- 02RegTech in a lender: reporting, identity checks and monitoringMost of a lender’s compliance work falls into three jobs: producing reliable figures for management and the supervisor, checking who a customer is, and watching accounts and transactions afterwards. This lesson takes each job through an international standard: the Basel Committee’s principles for risk data, the FATF guidance on digital identity and the FATF report on new technologies, with two worked examples.
- 03SupTech: how supervisors collect and analyse dataSupervisors receive more data from lenders than people can read. This lesson follows the Bank for International Settlements’ studies of supervisory technology: the two areas where it is used, the difference between data that firms push to the supervisor and data the supervisor pulls, the four generations of supervisory data systems, how incoming data are checked, with a worked example, and what makes a tool part of everyday supervision.
- 04How a regulatory sandbox works: eligibility, testing, safeguards and exitA regulatory sandbox lets a firm test a new product with real customers, under supervision and within limits agreed in advance. This lesson follows a practical guide published by CGAP and the World Bank and a report of the three European Supervisory Authorities: what an authority settles before it opens a sandbox, who may enter, how a test is set up and bounded, with a worked example, which safeguards protect customers, and how a test ends.
- 05Beyond the sandbox: innovation hubs, cross-border testing and lessons for firmsA sandbox is one tool among several that authorities use to deal with innovation. This lesson places it in the wider toolkit described by the IMF and the World Bank, explains how innovation hubs work and what firms ask them, follows the international pilot of cross-border testing and what it found, with a worked figure, and draws together what the sources imply for a firm that approaches an authority with a new product.
Quiz and certificate 9 questions; those on lesson 1 are free to try. Read every published lesson and score 80% or more for a certificate of completion.
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