Central Bank vows new technologies will ease regulatory burden on financial institutions
The Bank of Russia intends to diligently study and use SupTech (Supervision Technologies) and RegTech (Regulatory Technologies) for this purpose
MOSCOW, February 7. /TASS/. The Russian Central Bank’s suggested measures on cultivating financial technology should reduce the regulatory pressure on financial market participants rather than increase it, the regulator said in its Guidelines for Development of Financial Technologies in 2018-2020.
The Bank of Russia intends to diligently study and use SupTech (Supervision Technologies) and RegTech (Regulatory Technologies) for this purpose.
RegTech can be employed to identify suspicious activity and prevent fraud, automate procedures for the preparation and delivery of statements, and more, the regulator notes.
The regulator intends to use Big Data and artificial intelligence inside credit institutions along with robotic application in terms of RegTech, First Deputy Governor of the Bank of Russia Olga Skorobogatova said.
"We have just set up a working group on RegTech and the first meeting will be held in February. We will be able to go into more detail about projects that can be tested according to the [meeting] results," she noted.
SupTech implies the application of technologies inside the regulator for bolstering supervision and regulatory practice, the banker said. The Central Bank regards the analysis of the affiliation of borrowers, and forecasting cash demand to name just a few, as the application spheres for SupTech.