CUBE founder and CEO, Ben Richmond, recently joined Alyne CEO and founder, Karl Viertel, in The RegTech Report. The podcast focussed on how RegTech streamlines implementation and frees up precious resources for financial institutions. In this extract, Ben explains how leadership is imperative to successfully implementing RegTech at scale.
KV: You have three core things that you want to make sure are in place when you’re implementing a new RegTech solution. What are those three things?
Leadership, leadership, leadership. It has to be. My experience in implementing large-scale RegTech programmes over the last ten years is that you have to have the leadership.
You mean to say that people don’t want to give up their spreadsheets freely?
It’s like when the legal world moved from paper to digital and there was a transition of lawyers turning up with a laptop as opposed to carrying a case file under their arm. It’s that kind of transition. You have to have leadership – and not only that, the leadership you have has to have a very clear vision and scope for what you’re there to achieve. They’ve got to be able to say ‘right, this is why we’re doing this, this is what we want to achieve, this is the scope, this is the mandate, let’s get it done’.
This isn’t only at the start of the project, but throughout. As you come to those challenges on change and moving things forward, you’ve got to have that leadership. I think if you’ve got that then everything else falls into place.
Then you need good execution on the ground; good project teams, good business buy-in and then you can get it done. But if it doesn’t start with a clear vision and scope and leadership it’s an uphill battle all the way. And that’s just the reality of it.
Alright, now let’s jump ahead one more step. So, we’ve bought a new product and we’ve implemented it. What’s next?
This is a great point actually, so much is focussed on ‘we want to achieve this new capability, we want to get this product implemented’. This whole new world of RegTech offers so much opportunity that actually sometimes the thought isn’t given to ‘what does this mean, operationally in BAU’ and how do we now build our go forward operating models around those. I think that is crucial.
It’s all very well saying to the customer ‘OK great you’ve got this new capability’, but if they haven’t now established the framework and processes to leverage that and run that in the right way in BAU mode, then it’s not going to continue to deliver the value.
So, I think, having really thought through the operational requirements and processes and procedures on how to run this new capability is all important. And again, that’s about moving people up the value chain and saying ‘right, now the process runs this way and the machine does these things and now we can bring the people in to validate, review, spot-check, sign off on’. But they’re at the 20% end of the curve not the 80%.