By FINTECH Books Contributor,Tobias Houdek
Regulatory and commercial pressure has significantly increased over the last decade, providing ground for fundamental changes in the financial services landscape and the emergence of the RegTech space.
In RegTech, thoughts should be spent from the very beginning on the factors which drive quality and client satisfaction as a basis for sustainable success of technology based regulatory solutions. Therefore, an adaptation of the dimensions of the SERVQUAL framework used in service businesses is proposed as a way of RegTech quality assessment.
The adaptation takes into account the virtual environment of RegTech solutions and aims to respect the expectations of different stakeholders (e.g. the company executive management, the shareholders, the public, and the personnel) to holistically appraise a RegTech application. It should serve RegTech entrepreneurs, product managers and marketers to identify areas of differentiation for their products.
The SERVQUAL dimensions: Adapted to reflect the dynamics and essentials of the RegTech industry into the: RegTech quality compass. Efficiency refers to all forms of costs (including time and psychological efforts) associated with a solution in the daily business. Generating additional value beyond expectations is the core idea of the intelligence factor. The inherent need of security must be satisfied through competence, knowledge and skills embedded in the RegTech solution, making up the assurance dimension.
Availability expectations include not only the core application functionalities but also all support and service components. Last but not least, and arguably the most controversial dimension, is enjoyment. Compliance and risk management have been perceived for too long as fun-free zones. Working with a RegTech solution should be a pleasurable and motivating experience.