Financial Supervisory Service Accelerates RegTech... Full-Scale Promotion of Digital Transformation in Financial Supervision

Financial Supervisory Digital Transformation TF Kick-off Meeting Held

At the "10th Asia Economy Financial IT Forum" held on the 21st at the Shilla Hotel Yeongbingwan in Jung-gu, Seoul, hosted by Asia Economy and the Financial Security Forum, Yoon Seok-heon, Governor of the Financial Supervisory Service, is delivering a congratulatory speech. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Kangwook Cho] The Financial Supervisory Service (FSS) has formed a task force (TF) to establish an IT-based supervisory direction and vision, and is set to actively promote the digital transformation of supervisory tasks.

On the 21st, the FSS announced that it held the first meeting of the 'Financial Supervision Digital Transformation TF' chaired by Governor Yoon Seok-heon. At the meeting, Governor Yoon emphasized that through the TF, they will prepare a digital transformation roadmap this year and pursue three priority tasks: innovation of supervisory tasks through suptech, acceleration of regtech, and continuous fintech innovation.

Suptech refers to the integration of digital technology into financial supervision tasks to enhance work efficiency and supervisory capabilities. Through this, the FSS plans to build a big data-based civil complaint consultation system and expand AI and big data-based supervisory systems. Additionally, to establish a big data platform, the FSS will conduct diagnostics on the quality of supervisory information data and gradually streamline supervisory administration through automation technologies.

Regtech, which integrates new technology into financial regulation to improve the efficiency of financial companies' regulatory compliance activities, will also be accelerated. To this end, the FSS plans to share excellent domestic and international regtech cases with financial companies and encourage electronic financial service providers with weak compliance organizations to utilize regtech in anti-money laundering tasks.

Furthermore, to sustain fintech innovation, the FSS will establish an information-sharing system involving fintech companies and financial company practitioners and expand and strengthen a loan fraud spam message blocking system to protect financial consumers.

Starting with the first meeting, the FSS plans to prepare the roadmap by September. Next month, it will form an internal consensus on digital transformation and conduct internal and external surveys on the FSS's digital level. In June, through 'visiting interviews' with power users of supervisory information systems, it will identify digital transformation tasks. From July to September, the derived tasks will be selected as key tasks based on three criteria: technical feasibility, effectiveness, and urgency, and a mid- to long-term implementation plan will be established.

Governor Yoon stated, "By forming the Financial Supervision Digital Transformation TF, we aim to explore the direction and vision the FSS should pursue," and emphasized, "For a successful digital transformation of financial supervision, changes in organizational culture and work methods must occur together."