SupTech (supervisory technology)

What is SupTech in simple words

SupTech (Supervisory Technology) is technology used by regulatory bodies to digitalize and automate supervisory activities. In simple words, these are tools that help government bodies (for example, the Bank of Russia) control banks and other financial organizations more effectively and at lower cost.

Imagine that you need to check 1,000 companies for compliance with rules. Manually, this would take years. But if you have an automated system that collects data, analyzes it and finds violations, you can do it in days. This is exactly how SupTech works — it replaces manual labor with automated data analysis.

If RegTech is focused on supervised organizations (helping them comply with requirements), then SupTech is a tool of the regulators themselves for collecting data, conducting inspections, detecting violations and assessing risks. These are two sides of the same coin: RegTech helps companies report, and SupTech helps regulators verify these reports.

The implementation of SupTech allows moving from selective inspections to continuous monitoring and from reactive (responding to already occurred violations) to predictive supervision (forecasting possible problems before they occur). This significantly increases control efficiency and reduces the burden on business.

Areas of SupTech application

• Automated data collection: Collection of reporting from supervised organizations in machine-readable formats (XML, XBRL). This eliminates manual data entry and reduces the risk of errors.
• Risk analysis: Assessment of the financial condition and risk level of supervised organizations based on automatic analysis of large volumes of data.
• Automatic transaction control: Monitoring of financial operations in real time to detect suspicious transactions and signs of fraud.
• Remote inspection: Conducting inspections remotely, without traveling to the site. The regulator can request any data electronically and verify it without the need to visit the company's office.
• Predictive analytics: Use of machine learning algorithms to forecast possible problems — for example, bankruptcies or violations.

The SKIF-BP system includes a control activity module implementing SupTech functionality for financial control bodies. This allows government bodies to effectively control budget funds spending and detect violations.

These tasks are often solved using BPMS and RPA. BPMS allows managing inspection and control processes, and RPA automates routine operations for data collection and processing.

SupTech technology base

Modern technology solutions are used for effective operation of SupTech systems:

• Big Data technology: Allows processing huge volumes of information from thousands of organizations in real time.
• Virtualization technology: Provides an isolated environment for executing control algorithms and secure data storage.
• Artificial intelligence and machine learning: Used for anomaly detection, risk forecasting and automatic data analysis.

The design service includes development of a supervisory activity model and SupTech system architecture. This is a complex process requiring deep understanding of both technologies and regulatory requirements.

The training service is focused on inspection staff — employees who will work with the system. Training includes working with the interface, configuring control rules and interpreting analysis results. Read more about SupTech solutions in the technologies section.