AI-Powered Suptech for Financial Inclusion: How Emerging Market Authorities Can Unlock Its Potential

AI is reshaping financial services, yet financial sector authorities in emerging markets and developing economies (EMDEs) lag in AI-powered Suptech adoption: 53 percent use it, compared with 85 percent in advanced economies. Financial sector authorities (FSAs) in EMDEs can use AI-powered Suptech to improve operational efficiency, expand analytical reach, and strengthen decision-making across regulatory, supervisory, and support functions.

AI-powered Suptech can also advance financial inclusion by improving market monitoring, lowering compliance costs, building trust, and supporting inclusive finance mandates.This brief outlines five priority recommendations for EMDE FSAs to adopt AI-powered Suptech responsibly and support a more inclusive financial ecosystem:

1. Strengthen legal foundations for data protection and ethical AI use.
2. Pursue an ambitious but realistic digital transformation agenda.
3. Strengthen AI risk management.
4. Build an adaptive organizational culture.
5. Leverage domestic and international collaboration.