To keep the banking sector safe and sound in the face of these trends, we need to equip the supervisors of the future with the right tools and skills. And it is this principle that has guided our strategic work on the digital agenda.
It’s the fifth anniversary of this conference but we are also celebrating the tenth anniversary of the Single Supervisory Mechanism (SSM). Naturally, it is a moment of reflection about what the future holds and how European banking supervision should continue to evolve. And, right now, various societal, political, technological, environmental and economic mega trends are shaping the future of the financial industry. In the tech area, for example, we are in the midst of a fast-paced and unprecedented development which is changing every aspect of the economy.
The ways of working are changing profoundly.
My son is a computer programmer. This weekend while driving we spoke about the possibilities for his future and what sort of work he might do, given the rapid innovation taking place. He told me he uses AI now regularly to produce code for him that he then reviews. Very different from the work he was hired for just two years ago when he graduated!
In the aviation field artificial intelligence (AI) is being used to enhance the safety and efficiency of air traffic control by analysing historical and real-time flight data to predict potential collisions. Predicting accidents before they occur: isn’t that also a goal worthy of banking supervision? And in the health care field, common applications include diagnosing patients, end-to-end drug discovery and development, improving communication between physician and patient or transcribing medical documents such as prescriptions. All of this change in the industries around us are food for thought as we consider in a clear-eyed, realistic and vigilant way the risks and opportunities for us in banking supervision.
Disruptive technologies like AI are playing a growing role in banks’ day-to-day activities, and access to technology is becoming widespread. At the same time, banks are becoming ever more dependent on data, IT platforms and third-party providers.
To keep the banking sector safe and sound in the face of these trends, we need to equip the supervisors of the future with the right tools and skills. And it is this principle that has guided our strategic work on the digital agenda.
Since the inception of European banking supervision in 2014 we have built up and continuously improved a set of core IT systems, launched our suptech efforts and created multiple cutting-edge tools which are already up and running. And now it is time to shape a new common strategy covering both our core IT systems and our suptech tools, as well as, most importantly, their integration.
SSM tech strategy for 2024-2028
The new SSM tech strategy for 2024-2028 builds on two main pillars: people and technology. The strategy not only addresses several critical business needs Any smart strategy developed for the future must have at its foundation the recognition that people and technology are increasingly, even inextricably intertwined....
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