Calling All Fintechs and Insurtechs: The Regulators Are Coming. Are You Ready?

Written by Team SAP Signavio | 2 min read
Published on: March 21st 2023 - Last modified: March 24th, 2023
Fintechs and Insurtechs: Ready for the regulators

If you work for an agile, high-growth fintech or insurance technology company (or insurtech), you’re used to the freedom that comes from less regulation. Want to launch a new product or service to meet rising customer expectations? It may take just a few weeks to get the job done using your custom-built, cloud-based architectures and code. It’s designed to make innovation and process improvement fast and easy, which is an amazing source of competitive advantage...

Transparency and Trust

The problem can be that your IT infrastructure and processes may not be transparent and trusted by governments around the world. And their regulators are coming – quickly. Expect your organization to be more regulated over time, much like traditional banks are today.  

This will bring a host of new complexities and challenges for you, especially on the governance, risk, and compliance front. For example: 

  • When regulators make a new request – for instance, for process documentation or monthly updates on your blacklist for terrorists – can you quickly set up new processes to meet these requirements? And optimize processes over time?  
  • Anti-money laundering (AML) regulations are constantly evolving. How will you keep up as rules change on actions financial institutions must take to prevent and detect money laundering? 
  • Consumer protection is a core component of fintech regulation. Did you know that regulatory bodies concerned with data privacy can sanction companies for not following proper risk assessments and meeting standards around customer data? 

These examples are just a taste of what’s ahead on the regulatory front. As you can see, things will likely get very complex – and faster than you may expect.  

Technology Can Help

One of the best ways to deal with the rapid compliance process changes you’ll need to make is to implement an industry-standardized, agile back-end system, or platform, to support your finance and risk management processes.

This helps you define and operationalize new processes and changes as regulations change over time. (And they will – constantly.) Ideally, you want a platform that connects models and regulations the correct way – by modeling processes and decisions using the OMG standard Business Process Modeling Notation (BPMN) and the Decision Model and Notation (DMN). 

To manage process changes over time – and scale them safely as your business grows – you’ll also need to operationalize business process transformation. Business process transformation is a process-oriented approach that focuses on achieving – and managing – process transformation and excellence in a scalable, collaborative, and data-driven way.

Leveraging granular data and analytical insights into how processes run today and how people experience them, business leaders have the insights and data they need to understand where to act and the recommendations to understand how to act. As a result, they can lead targeted business process transformations that drive results and create happier customers and employees. 

Want to Learn More? 

Successfully launching and executing a transformation process is a continuous, multistep process that’s best supported by the right software. Learn more about it by downloading our new white paper, “Operationalize Continuous Process Transformation in Financial Services and Insurance”.  

You’ll learn about why standards-based business process transformation must become a core competency for your business. It’s the key to responding to new regulatory requirements with speed and excellence – and safely scaling the launch of new products and services as you grow. 

Published on: March 21st 2023 - Last modified: March 24th, 2023