Making suptech work: evidence on the key drivers of adoption

Leonardo Gambacorta, Nico Lauridsen, Samir Kiuhan-Vásquez and Jermy Prenio

No 1309, BIS Working Papers from Bank for International Settlements

Abstract: This paper examines the institutional drivers of adopting supervisory technology (suptech) by financial authorities worldwide. Using survey data from 112 financial authorities across 97 countries from the State of SupTech Report, we analyse how organisational characteristics and strategic frameworks shape the adoption of suptech initiatives. The analysis employs a two-stage hurdle model to track adoption from proof of concept to prototype, and finally to full deployment. We find that authorities with institution-wide strategies for digital transformation, data governance, and suptech deployment use, on average, about 20 additional applications and face fewer design and implementation challenges. Furthermore, while an authority's size and institutional mandate are significant factors in initiating advanced projects, the establishment of a dedicated suptech unit is the most critical factor in increasing the number of deployed applications. Finally, we find that public cloud adoption is associated with a higher probability of implementing AI tools, while reliance on in-house development is strongly associated with early-stage AI experimentation.

Keywords: suptech; financial supervision; technology adoption; financial authorities (search for similar items in EconPapers)
JEL-codes: C25 G28 O33 (search for similar items in EconPapers)
Date: 2025-11
New Economics Papers: this item is included in nep-fdg and nep-pay
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