So there it is: 2008 – 2018, a decade of regulation. It’s given us … stability? Confidence in the banks? Market transparency? Rise of fintechs?
One thing it certainly has given us is a detailed knowledge of how to implement regulation. Everything from drafting and agreeing the regulation, to advising on the regulation, to implementing systems for reporting and outsourcing BAU functions.
- We did it for Basel II – then Basel III.
- We did it for MiFID I – and then MiFID II.
- We did it for FATCA, Common Reporting Standards, IFRS 9, GDPR, PRIIP, SMCR.
- We did it for the SEC, the SFTC, the FED, the FDIC, the FCA, the PRA.
- We did it for a decade: straight, non-stop.
And now breathe.
It’s been one sprint after another. Yet so far no-one has designed an organisational model to cope with regulation and change: we just continuously bolt it onto the side. After all, why have one end-to-end regulatory solution when you can have one solution per regulation?
Fine – if you just want to hit year on year targets. But what’s the legacy? Multiple people and processes duplicating effort in an aim to meet regulators’ reporting requirements.
In years to come, everything from blockchain and artificial intelligence to stopping the brain drain of top talent to fintechs will take our time. But that shouldn’t detract us from the main point – we need to tackle banks’ creaking organisational models.
So here’s an idea. Given that ten years of regulatory change have taught us how to implement regulation, why not revisit your organisational model and consider where to minimise duplication and standardise regulatory processes?
- Boring? Check.
- Time consuming? Check.
- Necessary? Check.
- Saves a whole lot of money and creates a stable platform for the future? Check.
And if that’s the ‘why’, here’s the how. Enter, Lean Six Sigma experts.
Lean Six Sigma experts systematically identify areas of waste and opportunities to reduce variation. This skillset, correctly mixed with deep organisational model expertise, will help you create a bank fit for the future.
The principle is simple. Do more with less.
Isn’t that what everyone wants?