Fulfilling the Supervisory Mandate through SupTech

In a speech delivered last month, Marlene Amstad, Chair of the Swiss Financial Market Supervisory Authority (FINMA), argued that the mastery of technology, including supervisory technology (SupTech), will be essential for supervisors to fulfill their mandate going forward and that culture is critical to the success of such innovation efforts.

Amstad, who also chairs the International Organization of Securities Commissions (IOSCO) SupTech Forum, explained that artificial intelligence represents a “fundamental shift” in how data is analyzed and decisions are made. She stressed that supervisors “cannot stand on the sidelines” as technology reshapes markets.

Amstad presented findings from a global IOSCO SupTech survey conducted in March and April 2025, covering regulators responsible for approximately 75% of the international securities market value. Participation was geographically balanced, with strong representation from emerging markets and small authorities. More than 90% of respondents cited efficiency and effectiveness as the main drivers of SupTech adoption, while only 4% viewed staff reduction as a goal. This reflects a shift from automation to “cognitive augmentation” of supervisors.

The survey found that strategic needs outweigh pure technology availability, with AI identified as the leading enabler (65%), ahead of data access and cloud infrastructure. Cybersecurity and third-party dependencies were the main risks. SupTech is most widely used in consumer protection (75%) and capital markets supervision (67%), with high but unrealised interest in crypto-asset monitoring.

Amstad laid out learnings from FINMA’s own efforts to implement new SupTech capabilities, outlining its “Data, Discretion and Discipline” framework. “Through Data, Discretion and Discipline, we combine technology, human insight and principled oversight to stay ahead of emerging risks and maintain trust in the market,” she said. She also emphasized the importance of using technology to augment, rather than replace, human judgment.

“If there’s one thing I’ve learned from my work at the intersection of data and technology and finance, it’s this: culture is everything in SupTech,” Amstad concluded. “Culture outweighs data. Culture outweighs technology. Culture even outweighs budget... This is why I am convinced that SupTech is much more than an IT upgrade; it is a cultural upgrade.”