Empowering the Dutch financial supervisor with advanced analytics solutions 

 Artificial intelligence in supervision by DNB

The Commission supports employees of DNB in their supervisory task by developing data products for tasks such as risk identification and assessing levels of compliance. The solutions will use tailored advanced analytic methods to find new insights in data such as financial transactions and regulatory reports.

After development, the products will be implemented and deployed to bring value to DNB. The lessons learned can equally be used by DNB to strengthen their own capabilities in the development and governance of new similar products.

Context

The financial services industry is changing at a rapid pace due to the emergence of new fast-growing companies in the FinTech space as well as the increasing volume of data to process. 

There is therefore an urgent need for the supervisory arm of 'De Nederlandsche Bank' (DNB) to transition from techniques looking for indicators to algorithms that identify patterns in data that cannot be detected by the human eye.

The project has the potential to benefit other stakeholders, such as other central banks of the Eurosystem, financial institutions supervised by the DNB and society as a whole. This will be a direct result of improved financial supervision and enhanced financial stability.

Support delivered

A backlog of identified advanced analytics products including their assessed value and feasibility from which at least eight items will be further developed.

Advanced analytics products developed at minimum viable product level which will be deployed by the DNB with support from the contractor.

Demonstrations and dedicated trainings to facilitate the handling and daily use of these products which ensures adoptability and therefore value.

An advisory report detailing how the DNB can strengthen its internal ability to develop and maintain its own data products.

Results achieved

Advanced analytics is used to increase effectiveness of DNB employees by showing them the relevant information supporting decision-making. This project will deliver products that can identify patterns in the data which cannot be detected by humans alone and visualise these patterns.

Higher efficiency will be achieved by ensuring that the data products meet the needs of the DNB personnel. By involving the stakeholders throughout the development and testing, the data products can be tailored for optimal support in the work of DNB personnel.  This will therefore result in an increase in efficiency over the whole supervisory arm.