Here is the information extracted from the provided content: "Innovations in Pension Supervision - Enhancing Efficiency

Technological innovation in pension supervision 5thAPSA Annual Conference 25-26 July 2024, Livingstone, Zambia Dariusz Stanko, IOPS Secretariat www.iopsweb.org For Official Use - usage officiel

IOPS work on digitalisation Digital technology in supervision (SupTech) has been the IOPS priority (c.f. IOPS Strategy and IOPS Programme of Work) IOPS Report How Can Digitalisation make pension supervision easier and more efficient, WP 40, July 2023 IOPS SupTech Workshop, April 2023 Supervisory approaches to enhancing cyber resilience in the private pension sector, WP37, October 2021 Impact of the digitalisation of financial services on supervisory practices in the private pension sector, WP33, February 2019 Work conducted in synergy with other IOPS workstreams (data collection, risk-based supervision) 2 For Official Use - usage officiel

SupTech in pensions Supervisory priority: to expand the use of data and new technologies Gaining efficiency and driving more consistent, proactive and targeted supervision Data-driven decision making and forward-looking supervision Catalyst for eRisk Based Supervision (RBS) Still early stage of adoption, but process is gaining the momentum 21 authorities already using SupTech 11 authorities planning to do so (1-3 years ) 3 For Official Use - usage officiel

New technologies in supervision Benefits for supervisory authorities Benefits for supervised entities Enhanced accuracy, quality and security of collected data Better decision making and improved risk mgt More in-depth investigations and continued monitoring Increased time effectiveness and scale of supervisory activities Reduced cost of supervision Easier digital communication with entities Improving security and transparency of members information More efficient data sharing with public agencies Promotion of trust in financial system More streamlined licencing/authorisation More accurate and timely submissions Reduced reporting burden Enhanced analysis and risk mgt More engagement and compliance with regulatory obligations Reduced operational risks Reduced regulatory compliance costs More timely and efficient communication with members/beneficiaries 4 For Official Use - usage officiel

Where SupTech is used? Data & technology = fundamental priority in supervisory strategies strategy strategy help to improve the quality and cost-efficiency of supervision Technology platforms to enhance pension schemes operation, administratio n, service provision Building digital ecosystem Increasing coverage Automation of supervisory workflows; standardisation of processes of supervised entities Data Digital regulations application areas application areas collection, data storage mgmt and data analysis Risk Mgmt & to increase transparency & compliance Monitoring Encouraging savings for retirement foundation foundation Solid governance structures, robust IT system, resources and skills 5 For Official Use - usage officiel

Survey results Areas of financial supervision and support processes where new technologies are used or considered to be used: Use of Technology & SupTech Tools Digitalising regulations Enhancing Efficiency of Schemes Operations & Administration Supervisory Monitoring Supervisory Support Process Consumer Protection Supervisory Services Data Collection Data Virtual Assistance Data Reporting Data Storage Data Analysis Data Publication Real-Time Management Validation On-line Communication Digital Supervisory Services Consolidation 6 For Official Use - usage officiel

key areas of application Machine-readable regulations (AU, DE, IE, NL) Early stage Data collection Data analysis Advanced Data e-reporting Data management Data storage Analysis of supervisory data Early stage Data storage Cloud computing (private) Advanced 7 For Official Use - usage officiel

key areas of application (cont.) Digital platforms and IT portals leveraging on innovative technologies (work in progress): E-MPF (MPFA, Hong Kong, China) On-line insurance intermediary platform (Monetary Authority of Macao, China) Enable to trigger supervisory procedures on-line and serves as a channel to interact and communicate on on-going basis Licencing/authorisation/registration Submission of statutory information Digital communication with supervised entities Complaints management process Single common gateway for pension schemes administration processes (HK, Macao) Transformation opportunities (RBA, Kenya) Use of blockchain technology Automation of supervisory workflows Early stage 8 For Official Use - usage officiel

..technology used Data collection: (14 out of 38 respondents) use application programming interfaces (APIs technology) to automatically collect and disseminate data Data analytics and visualisation: Artificial intelligence (AI) (6) Natural language processing (NLP)/text mining (9) Machine learning (6) Business Intelligence (BI) solutions for data visualisation Web-scraping (7) Data storage: cloud computing infrastructure (mainly private) (9) 9 For Official Use - usage officiel

main challenges Supervisory capacity (skills, resources, budget) to develop and use SupTech tools Quality of data (data from legacy systems; duplication data; need for data standardisation) Technical issues (legacy IT systems; outdated technologies, SupTech integration) Operational issues, including cyber risk Other risks (legal risks, black box (transparency) issues, errors in data examining, etc.) Culture and strategic buy-in Industry readiness/capacity 10 For Official Use - usage officiel

Key learnings from practical experiences Regulation Adoption of SupTech solutions may entail changes in legislation Well-defined SupTech Strategy Strategic planning helps move forward organisation projects Need for dedicated budget Clear understanding of desired outcomes, associated benefits and risks Descriptive plan with clear phases, goals and prudent deadlines Governance/senior management support Top management commitment to digitalisation project Effective change management Digital transformation requires a change of culture (creativity and innovation) and mindset 11 For Official Use - usage officiel

Key learnings from practical experiences (cont.) Capacity building Spend time and budgetary resources on training of supervisory staff Provide training to supervised entities Seek advice from experts with recognised experience Strong engagement Development and implementation of SupTech requires a strong cross-team and inter-departmental collaboration Engage with regulated entities and other stakeholders Implement SupTech solutions in line with users expectations Have an agile approach (the tools can evolve continuously) Ensure that innovation creates as much value for the supervised entities as possible 12 For Official Use - usage officiel

Key learnings (cont.) Data/reporting Take care of data quality in a technical and organisational context Continue improving the information reporting systems Work on improving data processing and the quality of supervisory deliverables Master data management and data governance Technology Work on update of current IT systems to assist in digital transformation Develop SupTech solutions that are not necessary complex but make impact Consider cybersecurity before implementing SupTech Test, test, test Encourage supervised entities to participated in proof of concept and pilot activities 13 For Official Use - usage officiel

Conclusions Digital solutions entering pension supervision yet still early stage + different pace of changes Main applications: regulations, data (collection/analysis/storage), monitoring (real-time/online), technology platforms, automation of supervisory workflows, digital ecosystems, consumer protection, communication, administration Main technologies: APIs, AI, NLP, machine learning, BI, web-scrapping, cloud computing Challenges remain (capacity, data quality, technical & operational issues, various risks, culture and industry readiness) 14 For Official Use - usage officiel

Survey results 15 For Official Use - usage officiel