The penultimate topic in my series of “Ask the experts – why companies to go through transformation” focuses on Regulation.
Although many businesses are regulated (such as utilities and healthcare), new regulations have been particularly prevalent in the financial services industry in recent years. Banks, building societies and insurance companies have been subject to the plethora of regulatory measures such as anti fraud, anti money laundering, and capital adequacy tests.
These regulations have been driven by ongoing concern from the Bank of England that finance institutions have insufficient capital to withstand another major economic shock.
For leaders of financial services companies, there is no escaping it. The regulator has the power to close a business stream that does not comply, so leaders who want to hold onto their jobs have no choice.
This has driven very large transformation programmes in banks and insurance companies in recent years; not only to ensure regulatory compliance, but also to streamline processes which would otherwise make compliance a very involved, complex and unwieldy process.
Long and involved form filling has dire potential consequences for customer relationships - anyone who has opened a bank account in recent times will be aware of the number of checks the banks have to go through before an account can be opened.
The next, and final, topic in the series (coming soon): Vanity!