Banking supervisors must adapt through innovation to align with technological changes. Since 2020, the European Central Bank (ECB) has driven digital innovation forwards by connecting people, ideas and projects across banking supervision, according to a presentation published by the ECB.
The main result was the rollout of cutting-edge suptech tools to all European banking supervisors, including:
- Platform for Single Supervisory Mechanism (SSM)-wide digital collaboration as well as code sharing, cloud computing and the development of generative AI capabilities tool for machine reading and analysis of thousands of fit and proper applications
- AI-supported textual analysis platform offering natural language processing capabilities to all supervisory areas
- Single data lake bringing together all prudential data in one location, with access for all SSM users Specialised model development platform for big data analytics Graph and network analytics platform with advanced visualisation capabilities for data analysis
Several pressing business needs require further innovation and digitalization efforts, including:
- Need to keep up with the challenges of the ever-changing banking sector (AI, new business models, fintechs) and emerging risks (e.g. IT risks)
- Make sure that supervisors can fully use the applications and data available to them and that technology is seamlessly integrated into their day-to-day work
- Consolidate IT to further strengthen the SSM to work as one team with one technology across the ECB and national competent authorities (NCAs)