The Importance of Building Trust in the World of Regtech

21/02/2022
Time to read: 2 minutes
Lauren Bowden, Fintech content lead at The Comms Crowd looks at the opportunities and challenges facing Regtech firms, and the role trust plays in ensuring future success.Lauren

When the term Regtech burst onto the scene circa 2015, it was met with mixed reactions. Some were cynical. They dismissed it as spin for existing regulatory technology vendors to benefit from Fintech’s halo effect. Others saw it as a way for new start-ups to shake things up, offering more cost-effective and agile SaaS-based solutions to post-GFC problems.

Regtech is here to stay

Seven years later, with the market projected to reach around USD 33.1 Billion by 2026, countless players are thriving in all areas, from tax to cannabis. Established vendors embrace the portmanteau with open arms and invest in more flexible, forward-looking business models. Few would now dispute that Regtech is here to stay.

That said – there are still a few hurdles these firms must jump before they can realise their full potential. According to the FCA, one of the most active regulators supporting this burgeoning market, it all comes down to trust:

“The trust element is ingrained in the complex ‘business case for RegTech’ – RegTech firms need to convince firms to allow them to work with their most sensitive data assets and systems to solve their problems.”

For regtech firms, trust is everything

Policies, procedures, and – most importantly – legal documentation go a long way to ensure sensitive data assets and systems remain safe. But before anything gets signed, Regtech firms must find ways to demonstrate their trustworthiness. Of course, trust needs to be embedded internally through a solid culture. That culture must cascade from the top down and be cultivated by HR. However, it must also be demonstrable externally, especially in a crowded market. This can be achieved with transparent marketing communications.

  • External communications should be planned carefully for start-ups with many moving parts. Investing in building relationships with trade journalists marks the beginning of the journey and is always time well spent. These independent and credible sources are essential conduits for getting news out when the time is right.
  • For more established vendors looking to move into the Regtech space, a solid analyst relations programme should be at the heart of the product roadmap. Honest, open, and regular dialogue with the gatekeepers of those ever-important magic quadrants, waves, or rankings should be prioritised.
  • Solid content marketing and a strategic social media plan should be shared directly with prospects and customers, including blogs, e-books, infographics, and whitepapers and posted to social media platforms like LinkedIn. Content must speak authentically to the right audience, be relevant, add value, and avoid the overly promotional. With the amount of change in the regulatory landscape, the opportunities for subject matter experts to demonstrate thought leadership and guidance are plentiful.

Your voice deserves to be heard

Regtech firms can employ an arsenal of comms tools at various stages of their evolution. The art is knowing when, what, how, and to whom.

Working with communications professionals who understand the nuances of this complex, jargon-filled environment and how to get messages to hit home will ensure your voice is heard.

 

 

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