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Seizing the opportunity. Turning regulatory burden into business opportunities

The Australian financial services sector is currently facing significant regulatory reform: changes to APRA reporting (EFS, Residential Mortgage Lending, LCR/NSFR, etc.), IFRS 9, IRRBB, FRTB, IFRS17 and periodical stress testing just to name a few.

RegCentric has recently released a whitepaper in which we explore how regulatory changes can act as catalysts for transformation and how they can be treated as an opportunity rather than a burden.

Executive Summary of our paper:

Tactical approaches increase the burden.

  • Reactive and tactical approaches to regulatory compliance compound the burden over time.

  • A strategic and long-term vision increases corporate agility, efficiency and ultimately competitiveness.

  • Turning the focus away from the “how to comply” question to the “how can this help us” question unlocks business benefits from regulatory catalysts.

  • Focusing on improving infrastructure, processes, governance and operating models, as well as gaining better insights to support decision-making, helps improve business growth.

Data governance – from the ground up and from the top down – is of paramount importance.

  • Getting the data right should be a key focus.

  • Business-driven data governance ensures improved enterprise data quality, thus benefiting internal and external stakeholders.

  • Empowered CDO role or its equivalent can drive real change.

Technology is your friend.

  • Process automation through technology can reduce cost.

  • Australian and global “regtech” companies are offering viable alternatives to incumbent software companies.

People are poor robots. Robots are poor people.

  • Automation of the recurring processes has a twin advantage of increasing efficiency and freeing up the human capital to perform high value activities.

  • Robots & systems are not the panacea to all business problems. Even though they can facilitate, augment and make people more productive, they cannot replace humans altogether.

The full version of the whitepaper can be downloaded here.

We'd love to hear your feedback. Please let us know your thoughts here.

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