Whether it be the cost of compliance monitoring, too many complaints or cumbersome reporting procedures, every firm has its own specific pain points. Finding a RegTech solution that is able to address your key issues while providing additional cross-departmental value will free up significant time and resources, and ultimately deliver a higher return on investment.
With the RegTech market ever-expanding, how can you navigate the variety of options available? Recordsure’s Jonathan Drechsler outlines his top tips for focussing your search and finding the best RegTech providers for your business:
- Involve a cross-section of people
The benefits of a RegTech solution are likely to be much wider than you might first imagine. Solutions you initially seek out to solve compliance and regulation problems may also yield advantages for other business areas. Sales, marketing and distribution teams, for example, can often make use of RegTech to drive efficiencies in back-office systems, streamline the customer journey and derive greater insights from the customer experience. Therefore, ensuring representatives from risk, operations, sales and marketing are involved in the process can help to ensure the chosen solution delivers significant benefits across the whole company.
- Look beyond the established market
FinTech and RegTech are all about digital disruption. Seeking out cutting edge technology to reduce costs and improve efficiency is unlikely to be successful if you’re speaking to the same companies or using an outdated approach. For a completely different perspective, consider newer vendors that might have a different approach and solution to your business objectives and pain points.
- Approach your search with an open mind
As well as opening your mind to market disruptors, try to discard your pre-defined checklist of desired functionalities and invite vendors to demonstrate their product’s capabilities. You may discover functionalities you didn’t know existed. In addition to this, it’s worth speaking to your counterparts and competitors to fully gauge the market and understand what is working for others.
- Be brave
Try new technologies, be open to different approaches and don’t be afraid to fail. Keep trying new technologies to discover what works and when you find the one that does, commit adequate financial resources to it!
- Ensure adaptability
History and burdensome legacy systems have taught us that technology needs to adapt to changing regulation, technological advances and your evolving business needs. You should be seeking continuous improvement from vendors to ensure the product you purchase maintains its viability throughout the contract term.
This is an area where newer, smaller RegTech providers could beat larger providers to the punch. Off-the-shelf products from larger providers are convenient but there is often an assumption that the technology is fit for purpose, and will remain so, well into the future. Smaller, more agile providers are likely to work in partnership with you to customise and adapt the solutions over time as required.
- Prove its worth
This is the most important part of the process. Have a clear set of efficiencies that need to be demonstrated by each vendor, then create a focussed proof of concepts around a ring-fenced area of your organisation, building in early and frequent test-points to ensure key requirements are being met. Only then can you start to build a solid business case before committing to significant investment.
Choosing a RegTech solution that is adequate for your needs now and in the future can be challenging. For further advice on how to choose a conversation analytics solution that delivers a return on investment, read our Guide to Evaluating Conversation Analytics.
Recordsure been recognised in the RegTech 100, a listing of the “world’s most innovative providers of technology solutions that address the challenges and opportunities of dealing with regulatory issues.”