ABA Banking Journal
No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
SUBSCRIBE
ABA Banking Journal
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
No Result
View All Result
No Result
View All Result
ADVERTISEMENT
Home Compliance and Risk

You Already Know How to Manage Regulatory Change—Just Ask Mom

July 25, 2019
Reading Time: 4 mins read
You Already Know How to Manage Regulatory Change—Just Ask Mom

By Elaine F. Duffus

When you were a kid, remember when Mom, Dad or other important adult would drop some nuggets of wisdom and make you wonder, “Will I actually ever use that information?” Well, in the rapidly evolving regulatory environment facing banks today, it’s time to dust off those nuggets of wisdom—because the answer is a resounding yes!

In this article, we’ll cover what banks need to consider in building out their regulatory change management, or RCM, programs, especially as it relates to employing technologies to manage that change, by tapping the wisdom of some of yesteryear’s parental pronouncements.

“If all your friends jumped off a bridge, would you?”

When considering regulatory change management technology, this old saying isn’t that far off. Before taking the plunge (pun intended) into exploring so-called “regtech” options, it’s important to look before you leap by first conducting a thorough, regulatory compliance-based needs assessment. The goal of the needs assessment is to determine what elements your bank must have in its RCM regtech solution.

Once you have completed your needs assessment, assemble a team representing all the impacted business units. As a team, consider the following:

  • What is the right-sized regtech solution for us? What is appropriate for a very large bank likely won’t work for a small, community bank with a handful of branches. Don’t buy a Maserati when you only need a Volkswagen—and vice versa.
  • How much regulatory content coverage is enough for us? Focus on the needs of the many rather than the few. Software platforms are not a magic bullet and are unlikely to solve every single content need you have. Don’t waste time looking for perfection. Even the best, most expensive technology will not contemplate every nuance of your bank’s situation.
  • Do we have the appropriate budget resources for initial and ongoing costs? You know that the cheapest option isn’t always the best option. Try not to sacrifice too much to meet budgetary constraints. Consider the reputation of the vendor. Consult with peers. Ask the vendor to work with you on pricing if needed. In other words, consider more than the actual cost of the software. You don’t have to spend a fortune, but don’t sell your bank short.
  • What are the bank’s regulatory compliance priorities? If necessary, consider purchasing software based on a priority list, whether it’s a few quick wins or solving one major issue.

Due diligence and internal assessments are also necessary first steps in the sourcing and acquisition of a new technology platform. Only after these first important steps are completed might you truly be in position to retreat from that bridge ledge!

“If you keep making that face, it’ll freeze that way!”

When replacing an out-of-date or inefficient manual solution with software, don’t try to simply mirror the manual process. Implementing a new program is the perfect time to update procedures and explore new ideas. You are also paying a premium for the advice and guidance of those who have done this before or have seen it done at multiple institutions, so make sure you consider their experience. Remember that regtech solutions are generally multiyear commitments and you don’t want to be “frozen” into something that is not the right fit for your bank.

“Don’t make me turn this car around!”

If you’ve decided that a regtech solution is the right course and assembled a cross-functional team to gain a solid understanding of requirements, what’s next? First, know that you’re on the right course. Keep pointed in a forward direction, you’ve got this.

Consider potential vendors. In this phase, you should consider internal and external recommendations, current vendors for your institution (or institutions you previously worked with), and well-known industry leaders.

A road map for the selection process should be prepared after careful due diligence and includes the project budget, timelines and as fully articulated a list of requirements as you can muster. Consider providing questions to prospective vendors prior to meetings, as this can help them better understand your project scope and make the best use of everyone’s time.

Following these best practices will give you a good idea of which software platforms merit a closer look and eventual adoption.

“As long as you live under my roof…”

Aside from idle threats, how can you obtain user buy-in of your regtech solution? The work of implementation lasts long after the vendor has left the building. Take advantage of all they have to offer while onsite. Make sure everyone who needs it receives the trainings offered by the vendor. Set reasonable goals and timelines for adoption. Plan ways to enlist users’ time to truly learn the new technology, making it a part of their daily processes, while discouraging them from defaulting to former processes. There should only be the new way and plenty of support.

“Because I said so—that’s why!”

It’s tempting to initiate changes within the business without discussion because the Compliance or Legal Department says so, but we all know that approach doesn’t work. Keep the right people informed and partner with the impacted areas because—regardless if the software is cutting-edge, expensive or industry-leading—a successful technology implementation relies, to a very large extent, upon the basic principles of planning, communication and practicality.

There is little magic—but much common sense—embodied in the work of a compliance officer. All you ever really needed to know about implementing a regtech solution to help manage the dizzying pace of regulatory change are things that, deep down, you already knew!

Elaine F. Duffus is a regulatory compliance consultant with Wolters Kluwer.

ADVERTISEMENT
Tags: Change managementRegTechRisk managementThird-party risk
ShareTweetPin

Related Posts

Fraud Watch: The value of a multipronged strategy

Fraud Watch: The value of a multipronged strategy

Compliance and Risk
July 8, 2025

The value of building that response playbook and focusing on education and planning.

The ever-expanding role of chief risk officer

The ever-expanding role of chief risk officer

Human Resources
July 7, 2025

'A new era has emerged in which CROs faced greater nonfinancial risk amid pressure to boost the bottom line.'

Using Artificial Intelligence to Make Sense of Mountains of Data

Three myths about AI in banking

Technology
July 3, 2025

Common myths and misperceptions might confuse about what to expect and misdirect investment and efforts.

Banking forward: What is top of mind for 2025? 

ABA survey: Most banks likely to stick with current core provider

Newsbytes
July 2, 2025

While 69% of bankers are "extremely" or "somewhat likely" to remain with their current core provider at the next renewal, when they do pursue core conversions, the primary reason is poor customer service, according to ABA's survey results.

OCC releases Q3 bank trading revenue report

OCC report: Banking system sound, key risks highlighted

Compliance and Risk
June 30, 2025

The strength of the federal banking system remains sound, the OCC reported in its most recent semiannual risk perspective report. The report covers risks facing national banks, federal savings associations, and federal branches and agencies based on data...

2025 bank marketing trends

ABA Viewpoint: Toward a smarter framework for bank asset thresholds

Compliance and Risk
June 30, 2025

Indexing regulatory thresholds for growth makes sense. Here’s how to do it most effectively.

NEWSBYTES

Survey: High interest rates make bank customers want to spend less

July 7, 2025

Texas Bankers Foundation creates donations page in aid of Texas flood victims

July 7, 2025

OCC allows Texas banks affected by flooding to close

July 7, 2025

SPONSORED CONTENT

Navigating Disruption in Ag Lending – Why Tariffs Are Just the Tip of the Iceberg

Navigating Disruption in Ag Lending – Why Tariffs Are Just the Tip of the Iceberg

July 1, 2025
AI Compliance and Regulation: What Financial Institutions Need to Know

Unlocking Deposit Growth: How Financial Institutions Can Activate Data for Precision Cross-Sell

June 1, 2025
Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

April 25, 2025
Outsourcing: Getting to Go/No-Go

Outsourcing: Getting to Go/No-Go

April 5, 2025

PODCASTS

Podcast: Inside ABA’s new Treasury Check Verification System API

June 25, 2025

Podcast: Staying close to clients amid tariff-driven volatility

June 18, 2025

Podcast: Old National’s Jim Ryan on the things that really matter

June 12, 2025
ADVERTISEMENT

American Bankers Association
1333 New Hampshire Ave NW
Washington, DC 20036
1-800-BANKERS (800-226-5377)
www.aba.com
About ABA
Privacy Policy
Contact ABA

ABA Banking Journal
About ABA Banking Journal
Media Kit
Advertising
Subscribe

© 2025 American Bankers Association. All rights reserved.

No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive

© 2025 American Bankers Association. All rights reserved.