Project Background

Across many emerging economies, financial supervisors face a common dilemma: how to modernize supervisory infrastructure, including the collecting, processing, and acting on regulatory data, without disrupting day-to-day operations or overextending institutional capacity. Mongolia's Financial Regulatory Commission (FRC) is embarking on tackling this challenge.

The FRC is the primary regulator for Mongolia's non-banking financial sector, overseeing insurance companies, securities firms, investment funds, and credit institutions. As Mongolia's financial markets grow and digitalize, the FRC faces mounting pressure to supervise an increasingly complex and data-intensive landscape with existing tools and processes that were not designed for this purpose.

Recognizing the need for a strategic approach to technology adoption in supervision, the FRC engaged with Regnology through the Public–Private Secondments for SupTech Innovation (PPSSI)programme. The project aimed to draw on Regnology's deep experience in regulatory technology to help the FRC develop a clear, actionable suptech roadmap, grounded in the realities of the Mongolian regulatory context and aligned with international good practice.

Project Objectives

The collaboration between the FRC and Regnology focused on assessing the current state of supervisory technology at the FRC and identifying a sequenced path toward a more modern, data-driven supervisory function. Specifically, the project sought to:

• Understand the FRC's existing data infrastructure, reporting workflows, and technology systems;
• Identify key gaps and pain points in the current supervisory data lifecycle — from collection and validation through to analysis and reporting;
• Benchmark the FRC's suptech maturity against international peers and good practices;
• Develop practical, prioritized recommendations across short, medium, and long-term time horizons; and
• Provide visual, accessible guidance that FRC leadership and technical teams could use to drive forward digital transformation.

Solution Overview

Marek Włodarczak, SupTech Subject Matter Expert at Regnology, conducted a structured discovery process with the FRC, including interviewing key staff, reviewing existing systems and data flows, and mapping the end-to-end supervisory data journey. This diagnostic phase revealed important challenges that included a high degree of manual steps in supervisory processes, limited data quality checks, and the use of Excel-based workflows for core tasks. Processes such as risk assessment and complaint handling were also not yet digital, leading to inefficiencies and increased potential for errors.

Building on this diagnostic, Regnology developed a SupTech Roadmap for the FRC, providing a structured approach for integrating new technologies into supervisory workflows and prioritizing automated data reporting. This kind of strategic roadmap is particularly important, as financial authorities without a formal suptech strategy tend to report greater implementation hurdles when deploying new technology.

The roadmap is structured around a modular suptech architecture, and outlines how components can be introduced incrementally rather than through a single, high-risk transformation. Key elements include:

• Automated Data Reporting (ADR): A foundational pipeline enabling structured, machine-readable data submissions from regulated entities, reducing manual processing and improving data quality.
• Supervisory Data Warehouse: A centralized repository integrating data from multiple sources, enabling cross-sector analysis and longitudinal trend monitoring.
• Risk-Based Supervision Tooling: Analytical modules supporting early warning indicators, peer benchmarking, and sector-level risk dashboards.
• Integration with National Infrastructure: Guidance on aligning the FRC's data architecture with FINA and the National Data Center, supporting broader government data initiatives.

Batchimeg Batbold, Director, Sandbox Unit, Financial Regulatory Commission of Mongolia highlighted the practical value of the project, noting that "as a developing country, we continually face resource constraints – whether human, financial or technological. Having a clear roadmap allows us to prioritize effectively, identify where we can create the greatest supervisory impact and modernize our processes based on the realities of our capacity and needs."

Building on this, project secondee Marek Wlodarczak emphasized that addressing these constraints requires a fundamental shift in supervisory approach: “To meet the demands of a complex and rapidly evolving financial landscape, supervisory authorities must transition from traditional, manual oversight to a more agile, data-centric paradigm. We believe this transformation hinges not just on adopting new technology, but on strategically building a strong foundation of data governance and pursuing a phased, value-driven implementation. The principles we have outlined provide a pathway for the FRC to unlock the power of their data, enabling a move from reactive processes to proactive, risk-based supervision and fostering a more resilient financial ecosystem.”

Impact and Lessons Learned

The project generated tangible value by equipping the FRC with a structured, evidence-based framework for suptech investment. FRC Mongolia is now preparing to use these insights to deploy a priority suptech use case before launching a broader suptech solution. Key insights from the engagement include:

• Context matters: The most effective suptech advice is grounded in the specific regulatory and institutional context of the authority. Generic frameworks need significant adaptation to be actionable for regulators like the FRC.
• Sequencing is strategic: A phased roadmap that distinguishes short-, medium-, and long-term actions helps regulators make the case for technology investment incrementally, rather than requiring large upfront commitments.
• Feedback loops improve outcomes: The FRC's detailed mid-project feedback produced a significantly stronger final deliverable. The willingness of both parties to iterate is a hallmark of effective secondments.
• Data foundations first: The roadmap's emphasis on foundational infrastructure (ADR, data standardization, documentation) before advanced analytics reflects a lesson shared by many supervisors globally: analytics capability is only as strong as the underlying data quality.

Next Steps: From Roadmap to Implementation

The SupTech Roadmap positions the FRC to make informed, sequenced investments in supervisory technology over the coming years. Immediate next steps may include:

• Sharing the roadmap internally across FRC leadership and technical teams to build alignment on priorities.
• Engaging with national counterparts to explore data-sharing and integration opportunities.
• Scoping a pilot for automated data collection in one regulated sector, as a proof-of-concept for the broader ADR architecture.
• Connecting with development finance institutions and international technical assistance providers that may support implementation.

About the Project Partners

Financial Regulatory Commission of Mongolia (FRC)

The FRC is the primary non-banking financial sector regulator in Mongolia, overseeing insurance, securities, investment funds, and credit institutions. The FRC led the project, providing regulatory context, institutional knowledge, and strategic direction to ensure the roadmap reflects Mongolia's supervisory priorities and capacity.

FRC Project Contacts:

• Batchimeg Batbold – Director, Market Research and Development Department
• Jargaltsetseg Batsaikhan - Director, Sandbox Unit

Regnology

Regnology is a leading international provider of regulatory reporting and SupTech solutions, working with central banks, financial supervisors, and regulated entities across more than 60 countries. Regnology contributed deep technical expertise in supervisory data architecture, regulatory reporting automation, and SupTech implementation to the engagement.

Seconded Expert from Regnology:

• Marek Włodarczak – SupTech Subject Matter Expert

Public-Private Secondments for SupTech Innovation

Co-led by the World Economic Forum and the Cambridge SupTech Lab, this initiative connects technical experts from the private sector with financial authorities through short-term secondments. The goal is to accelerate innovation in supervision and regulation by solving practical challenges with cutting-edge technology.