My Supervision: Straight Through Digital Supervision Qorus-Infosys Finacle Banking Innovation Awards 2024- Nominated

The Dutch Central Bank (DNB) is transforming its financial supervision with an IT suite that supports both institutions and supervisors in the end-to-end process of supervision. This groundbreaking digital transformation journey began in 2020, and by summer 2023, we successfully implemented a fully digital workflow for financial supervision. This pioneering effort, achieved without peer examples, included a program to enhance digital skills and culture. In addition to on-the-job training for specific tooling, our in-house academy provided mandatory base training and expert courses on topics from AI/MS 365 to psychological safety workshops and change management skills.

Our discussion with the institutions on data quality starts in our brand-new tool Dataloop, which we introduced in 2023 and now made available to the whole insurance sector. We even prefill qualitative answers from previous reporting periods to make the burden of being supervised a bit lower for the Dutch financial sector.

After the data intake, the data is automatically transferred to our risk engine, where we calculate automated risk scores based on expert models. At the heart of this process are 17 risk components, both financial and non-financial, that assess the risks within these institutions. Datadriven, fast and consistent. The perfect start for supervisors to ensure a level playing field for the sector and enhance these scores with their expert knowledge of the institutions and risks they supervise.

This expert judgement phase is also supported by our digital workflow. For these assessments, various quantitative and qualitative sources and outcome of interviews and risk assessment programs are being used. This gives supervisors a comprehensive view of an institution's risk profile. Supervisors can benchmark the scores of their institutions with relevant peer groups. The supervisor then determines the appropriate follow-up action, which could range from further in-depth investigation to immediate mitigation.

All decisions and conclusions are automatically archived. Throughout the year, planned investigations and mitigation trajectories are executed and monitored in a central CRM system. These are digitally transferred to our digital supervisory calendar, which is shared with institutions online via the portal. Institutions can now see online in which stage the request is with DNB, fulfilling a major wish of institutions.

The latest addition to our ATM (Supervision chain process) Suite is a tool that automatically notifies supervisors and managers of new risk developments or actions that are required. This tool is built in low code Power Apps and is integrated into all other applications. Also, the supervisors can now use GenAI tools developed by DNB to quickly find the right regulation, Q&As or institution specific documents for their risk assessment.

The result of this digital transformation is a reduction in time spent on data handling and analysis, and less burden for supervised institutions. Moreover, our digital transformation ensures a uniform methodology that is applied equally across institutions, both for large, midsize, and small institutions and different financial sectors, whilst still allowing for a proportional and risk based approach.

In terms of technology, we have combined self-developed tools such as ‘My Supervision’ with off-the-shelf applications such as CRM. This blend of custom and standard solutions provides us with a flexible and robust system that can adapt to our evolving needs.

Our goal is to support supervisors with applications that flawlessly work together. The result of this digitalization process is more efficiency, transparency, and better audit trails. We have mirrored applications, meaning what the institutions see, the supervisor can also see. This approach ensures a level playing field and fosters trust between the supervisor and the institutions.

Now, we are integrating AI into our continuously improving toolkit. Experience the future of financial supervision with DNB - where technology meets trust.