28 June, 2024

5 ways regulatory compliance supports business growth



28 June, 2024

5 ways regulatory compliance supports business growth

5 ways regulatory compliance supports business growth

Regulatory compliance is not simply a “nice to have”. In fact, businesses who have found themselves implementing compliance measures half-heartedly as a tick-box exercise have found themselves in sticky situations and even penalised by regulators.  

For the insurance, financial services, and other highly regulated sectors, where people’s money and potentially their livelihoods are at stake, we’re seeing more and more pressure from regulators for firms to protect their customers. In fact, a report by Gartner has predicted that investment in governance, risk, and compliance tools will increase 50% by 2026, illustrating the increasing urgency of compliance.  

When you prioritise compliance, you can expect to reap a range of benefits including: 

  • Greater protection from penalties: Running the risk of non-compliance isn’t just the wrong thing to do in the eyes of your customers and potential business partners, but it can also result in eye-watering penalties that result in both financial and reputational loss.  
  • Enhanced trust: Compliance is a legal and regulatory requirement, and therefore, when your customers and stakeholders are reassured that you’re taking the steps you need to be, they will be more inclined to trust you. And all good relationships are built on trust! 
  • Smoother operations: A robust compliance management programme requires continuous evaluation of your existing processes and making any changes that improve your compliance. You’ll also need to set guidelines and share these with your employees, helping to streamline your internal processes, which will boost efficiency. 

But investment in regulatory compliance can also have significant advantages for your growth strategy.  

Let’s take a closer look at this.  

How does regulatory compliance support business growth? 

No matter the size or scale of your business, adhering to regulatory compliance and having a robust compliance programme can help to boost your business even further.  

1. It establishes consistency

With anything in your business, consistency is key, and establishing clear and strong compliance processes will only help carry your business in the direction of growth. Building this foundation of consistency can help to better prepare your business and your workforce for these growth opportunities, which can come from further innovation and partnerships.

2. It helps break into new regions and markets

Growth requires expansion, and whether that be to new regions or into new markets entirely, it’s crucial that when you are thinking about understanding a market, you need to go beyond a simple transaction-based analysis. Instead, you need to be looking at a broader understanding of how businesses in the area operate and gain an understanding of all the moving parts within that industry.  

Doing so, will enable your business to properly assess risk, and enter these new regions or markets with the control and compliance required—both which are essential for achieving sustainable growth. 

3. It positions you as lower risk

Investment is key for achieving growth. Taking the time to implement and establish strong compliance measures positions you as lower risk to investors, in turn making your company more attractive to investors who are seeking stable returns and want to avoid any controversy and non-compliance that could see the opposite. 

4. It provides a competitive edge

Although compliance is a non-negotiable in the eyes of regulators, there are still some firms who will incorporate very minimalistic compliance processes that “do the job”. However, given that research has found 69% of global adults are more concerned than ever about their privacy, it’s a no-brainer that going above the minimum requirements and steering away treating compliance as a tick-box exercise will help create peace of mind for customers.  

When customers feel their data and information is thoroughly protected, you’re much more likely to win their custom, and therefore see growth. 

5. It enables greater innovation

With so many rules and regulations governing how regulated businesses run, it can no doubt be complicated ensuring you meet these standards. Luckily, there are now a lot of great automated compliance solutions that can help maximise your compliance efforts, ensuring accuracy and efficiency.  

Utilising these scalable technologies not only introduces your workforce to new, innovative tools, but can also enhance the service you offer to customers.  

Trying to grow your business often requires a lot of trial and error. But when it comes to aspects such as compliance, there’s no question about its effectiveness in helping you to unlock growth and attract new opportunities.  

Looking to up your compliance efforts? Our range of data and compliance solutions can help you to stay compliant, accelerate onboarding, and reduce risk—all while growing your business! Want to find out more? Get in touch 

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