The landscape of financial supervision is changing, but not to thunderous fanfare, flash, or applause. Like the silent pace of dawn swiftly replacing night, the adoption of supervisory technology (SupTech) tools is quietly gathering pace, enabling regulators to manage ever-growing volumes of data and identify risks faster. As we head into the second half of 2025, the conversation is fuelled by talks of integration and fine-tuning, rather than silver bullets and lavish breakthroughs.
As part of the Global RegTech Summit, hosted by FinTech Global in London, experts from central banks and research institutions gathered to take stock of where SupTech stands today and where it’s headed in the next few years.
The discussion, under the banner “SupTech in 2025: Transforming Supervision Through Innovation,” revealed a landscape marked by gradual progress, persistent challenges, and a growing recognition that technology will be indispensable to effective supervision, even if it doesn’t look like science fiction.
The panel featured John Yeo from the Bank for International Settlements Innovation Hub, Dane Whittleston from the Bank of England’s Prudential Regulation Authority, Kalliopi Letsiou from the University of Cambridge’s SupTech Business Lab, and Gyaute Peseckaite-Kibickiene of the Bank of Lithuania, all moderated by John Allan from the Investment Association.
The term SupTech may still sound niche, but the panel made it clear this is anything but a corner of the regulatory universe.
Yeo explained that supervisory technology has moved beyond pilot projects and proofs of concept to become a mainstream necessity. In a world awash with data, regulators can no longer rely on old-school analogue processes.
The drive to be “data-led” has become both an expectation and a survival strategy, as digital markets demand digital oversight.
Yet Yeo was careful to highlight the uneven landscape: while some authorities are weaving predictive analytics and AI into their daily work, many remain at earlier stages, experimenting with basic automation or still grappling with data quality.
This view was echoed by Whittleston, who leads a regulatory technology and innovation division.
His team is grappling with the reality that supervisors receive far more data than any human can process. The goal is not to replace human judgment but to enhance it, using AI to surface critical insights that help regulators intervene at the right moment.
Whittleston candidly acknowledged efforts to build frameworks around AI ethics and policy but admitted there is still much to do before the full promise of SupTech is realised.
Adding an academic lens, Letsiou shared findings from extensive research. Her work categorises supervisory technology adoption into “generations,” ranging from manual and semi-automated processes through to advanced AI and cloud computing solutions.
While the majority of authorities remain in the early phases, there is a clear push toward more sophisticated tools, driven by rising regulatory burdens and the urgent need to spot systemic risks early.
Crucially, Letsiou emphasised that without high-quality, standardised data, even the most advanced AI applications struggle to deliver.
Adding onto this, Peseckaite-Kibickiene offered a grounded perspective shaped by institutional complexity.
She detailed the slow, painstaking process of updating decades-old IT systems and navigating labyrinthine legal frameworks.
Reporting cycles remain fragmented and sluggish, sometimes taking months to implement changes.
Yet, she stressed the growing recognition of data as a strategic asset rather than a mere compliance checkbox. This mindset shift, combined with better integration between regulators, firms, and international bodies, is critical to easing reporting burdens and accelerating SupTech adoption.
Peseckaite-Kibickiene also highlighted efforts to foster closer collaboration among Baltic states, aiming to create regional data-sharing frameworks that could serve as models for broader international cooperation.
She noted that harmonising regulatory standards across jurisdictions remains one of the biggest challenges but stressed that incremental progress in cross-border data coordination is vital for building a resilient supervisory ecosystem.
What emerged from the discussion was a shared conviction that technology alone is no silver bullet. Culture and leadership matter just as much.
Successful SupTech initiatives are those embedded directly into organisational strategy, not relegated to innovation labs as side projects.
Having senior management buy-in and a clear mandate to act swiftly on tech-driven insights is vital. As Allan, the session’s moderator, noted, it’s about making digital innovation part of the DNA of regulatory bodies, not just a shiny add-on.
He also underscored the importance of communication between regulators and the firms they oversee, arguing that transparency in how supervisory technologies are used can help build trust and reduce fears around AI decision-making.
Allan pointed to ongoing initiatives aimed at educating market participants about SupTech tools, which he described as crucial for smoother implementation and greater acceptance across the industry.
Despite this, barriers are still prominent, including legacy IT infrastructure, resource constraints, and legal uncertainties, all of which slow painstakingly slow progress.
But overall, the mood was one of cautious optimism, with the panel regarding SupTech’s evolution as a marathon requiring patience, persistence, and above all a willingness to rethink traditional approaches to supervision.
Looking ahead, the panel painted a future where regulators become more agile and proactive, using real-time data analytics to anticipate crises before they erupt and reducing the reporting burdens that weigh heavily on firms.
In this future, technology empowers human supervisors rather than replaces them, helping keep the financial system safe and resilient in a digital era.
SupTech might not yet make headlines and take all the plaudits in the regulatory industry, but it is slowly shaping the rules of the game, quietly, steadily, and with a distinctly 21st-century flair.
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