Also, the risk-based supervision of banks is extensively datadriven and is an example of SupTech. The future of RegTech and SupTech technologies, however, lie in big data analytics, artificial intelligence, machine learning, cloud computing, geographic information system (GIS) mapping, data transfer protocols, biometrics, etc. 15.
A strong risk culture – in which risk detection, assessment and mitigation are part of the daily job of bank staff – will be central to the success of managing the emerging risks. Similarly, systemic risks may arise from unsustainable credit growth, increased inter-connectedness, procyclicality, development of new activities beyond the supervisory framework and financial risks manifested by lower profitability.