RegTech: Fortune favours the bold 19 May 2017
As the demand for regulatory technology grows, only the brave and the bold will achieve their goals as a preferred provider for financial institutions.
In the wake of the financial crisis in 2008, over the next 7 years the UK regulator’s demands for changes released through publications and annual volume announcements increased by an astounding 425%. In response, financial institutions began to grow their compliance teams.
However, with unsustainable increasing compliance costs, a movement to outsourcing emerged, thus, the rise of technology firms offering regulatory technology (RegTech) began.
The potential for this market is staggering, with the larger banks such as HSBC, Deutsche Bank and JP Morgan spending well over $1bn a year each on regulatory compliance and controls. Whilst some would argue that RegTech is still in its early stages, it shows no signs of slowing down.
Stand tall in your marketplace.
Under the pressure of the regulator, financial institutions – particularly banks – are looking for a cheap solution that can be integrated easily and quickly into their existing infrastructure. Cheap, easy and quick may be what you think makes you different, unfortunately so do your competitors! So how should you differentiate your brand?
Be bold. Be brave.
Some start-ups are flourishing within this sector; small and nimble they’re articulating a clear value proposition to their specific target audiences. Firms with an ambiguous brand purpose will benefit from adopting an air of confidence, positioning themselves as specialists from the offset.
Armed with a clear value proposition and specialist stance, successful start-ups will be elevating their brands through regular, compelling and relevant content addressing the challenges faced by their specific audiences.
At the other end of the spectrum, some larger, more established firms, have not been as bold. The few who fear they could be pigeonholed into `RegTech’, reducing the term to a trend, are missing the opportunity to leverage their resource and compliance expertise to become a leader within this sector.
The need to cater to larger audiences across multi-regions has led to many of the larger firms defining their brand strategy by their product suite – as opposed to articulating their true value and more importantly – ‘Why they matter’ to their clients.
Make your content count
The term ‘content strategy’ can often leave marketers bamboozled where to start. The important thing is that you need one, as basic or complex as it is. Timing is everything, there will often be trigger moments, albeit macro or micro, but the point is that through the soft touches you create, with blogs, and relevant thought leadership, you can ensure you are kept front of mind with your clients and prospects.
Whilst we used to tell our clients that ‘content is king’, it’s more than that now. It doesn’t mean creating masses of content, it’s about creating useful, relevant content that should always aim to drive a reaction from their reader. And, whilst internal subject matter experts bring the insight, it is often an external voice that can interpret that magic and bring a content piece seriously to life.
It is important to remember that content isn’t just prose, a blog or simply a punchy paragraph – it can be a striking infographic or even a dynamic video. As an external agency we work closely with our clients to amplify their deep expert knowledge and opinion ready for their target audiences to consume how they want to, where they want to and when they want to.
As the sector continues to grow, the RegTech brands of today have the opportunity to be bolder and smarter – giving their brand real purpose through a strong ‘what’s in it for me’ value proposition.
Are you being bold enough?
At Living we help businesses to drive performance with strategic thinking, brand creation and cut-through messaging, we fuse these key elements together to create highly effective results.