Regulatory compliance is not the most exciting aspect of business. As a business leader, you probably relish the opportunity to devise complex strategies to enchant your consumer audience and outwit your market competitors — and regulatory compliance does none of that. Still, compliance is not something that you can simply ignore; you need to devote some resources to ensuring that your business remains compliant with existing government regulations, or you could succumb to major fines and sanctions.
Fortunately, there is a solution: RegTech. Regulatory compliance software can make it easier to become and stay compliant, even in a shifting regulatory environment. However, before you invest in just any RegTech, here are a few qualities you should look for in the software you rely on for compliance:
A RegTech solution that does not integrate with your existing digital infrastructure is more or less worthless. The value of RegTech is its ability to automate many of the tedious and grueling manual tasks associated with compliance; if the software cannot access the programs it needs to evaluate and maintain compliance, it is not a practical tool.
Thus, perhaps your primary concern in your search for a RegTech solution should be its capacity for integration with your current software and systems. To determine this, you will either need deep knowledge about your digital infrastructure or else have the ability to connect your IT team with the RegTech partners you are considering. Small tweaks to your digital systems might be necessary, but if a RegTech solution requires an overhaul of your infrastructure, you might look for another option.
Assuming that you see the success you are hoping for, your company will not remain the same size forever. Thriving organizations tend to expand, adding new employees and expanding into new markets. Unfortunately, growth increases risks associated with regulatory compliance, so if you are planning to scale your business, you need to be certain that the RegTech you rely on will continue to provide cover as you do.
If you are expecting your organization to undergo quite a significant amount of change over the coming years — or if your industry is plagued by consistently changing regulations due to shifting social expectations or evolving technology — you might want to invest in a RegTech solution oriented toward change management. Then, in addition to scaling in size and scope, your RegTech solution is equipped to handle the needs of your employees during times of flux.
Regulatory compliance is a frustratingly complex field, and every organization must approach the issue of compliance in a distinct way. Unfortunately, one-size-fits-all solutions rarely do actually work equally well for all users; you will likely need to work with your RegTech partner to ensure that the solution you rely upon is appropriate for your unique needs.
Therefore, you want to be certain that your RegTech service provider will be engaged in your relationship. You do not want to work with a RegTech provider who will sell you a solution and immediately become unreachable; you need a RegTech partner, who will be deeply involved in ensuring that your solution continues to serve your purposes into the future. To understand how prospective RegTech providers manage client relationships, you might interrogate sales staff and, if possible, reach out to current clients to discuss the customer service they receive. If the level of engagement falls short of your expectations, you should not hesitate to find a new RegTech provider that better suits your needs.
Maintaining compliance is difficult without the use of technology, so you do not need any tech solutions to make regulatory compliance any more headache-inducing. Rather, you are investing in RegTech as a means of simplifying the process of compliance, and thus, you need your RegTech solutions to be easy for you and your staff to use. You should take advantage of free trials to practice using your RegTech interface and pay close attention to processes that are less-than-intuitive. Your staff should have the same opportunities to examine the software and find sticking points. RegTech platforms that offer customizable features will generally make simplicity in design easier to achieve, so you might pursue providers known for their willingness to personalize their products.
The sooner you relegate the most odious regulatory compliance tasks to RegTech, the sooner you can focus on the more thrilling responsibilities of a business leader. You should be pleased with the RegTech solutions you find when you prioritize software with the above qualities.