by Paul White
There’s much that divides our industry. We’re competitors. We’re customers and providers. We’re based across the country. We’re businesses of different sizes. We’re leaders and followers. But there’s one powerful emotion that unites us all: worry. Like Atlas, we have the weight of the world on our shoulders. Although in the case of trust and corporate services, it’s the weight of regulations and the worry that we’ll fall foul of them. Which can lead to fines, client loss, reputational damage and even personal liability.
But even if the worst doesn’t happen, working in an environment of fear negatively affects productivity because those consumed by it will have their attention on solving problems rather than adding value. It also contributes to staff turnover, poor time management, strained working relationships and lower quality outputs. This all affects the bottom line.
The worry is everywhere, as proven by the conversations we have with customers nearly every day. Which begs the question, how can we reduce it? To answer that, we need to explore where the worry comes from. Only then can we begin to find solutions that will help us all sleep better at night.
Data governance worries
One of the biggest sources of stress in our industry is data governance. In fact, our research shows that 77 per cent of firms say that data quality is now their top business challenge. Like many sectors today, we’re awash with information. From client entity records and tax filings to personal details. But unlike other industries, this data is under incredible scrutiny.
It must be available and accurate at the drop of a hat. Yet it often isn’t. We’re constantly hearing that people distrust their data’s reliability. Or they worry it’s not recorded in a way that would be fully compliant with industry regulations across multiple jurisdictions, which demand different formats and details.
This leads to poor process efficiency and difficulty accessing data for urgent requests. As a result, firms increase their headcount to manually manage information, leaving highly trained and often well-paid specialists to do administration rather than focus on customers.
And at the end of all these challenges, the fear remains that there might be errors owing to poor record keeping or human fallibility. After all, even the most experienced and meticulous person can make an honest mistake. Especially if they’re dealing with a huge workload. The result? The ever-looming threat of reputational risk and regulatory fines.
In fact, one respondent told us in our research, “The constant anxiety of falling foul of regulations and incurring fines is overwhelming, and our inability to fully trust our data’s compliance is a looming threat to our company’s reputation and financial standing.”
Yet there is a solution to this challenge. And it starts with creating a ‘single source of truth’ for all entity and enterprise data, so information is always available and trusted when needed. It might feel uncomfortable to do away with spreadsheets, disconnected databases and even paper records. In fact, the prospect of being separated from these familiar tools can be a worry in itself. But these disparate, often conflicting and unwieldy records are the real issue. They create many different versions of the truth with no way of knowing which is right.
Putting this information in a cloud-based piece of software solves this issue. Even if it takes a bit of getting used to. Businesses need to move from old ways of storing information to a single platform that creates a common understanding of how information flows through an organisation. This creates new levels of transparency, accuracy and control. And it reduces worry, while allowing employees to focus on adding value rather than finding, maintaining and moving data.
Regulatory worries
But even if the data worries have been mitigated, further stress arises when it comes to dealing with the regulators. It takes time and efforts to make filings, which becomes ever more burdensome when working across multiple jurisdictions and new regulations.
Add to this the urgency with which regulatory tasks must be undertaken and the stress rises while margins get eroded thanks to endless workloads. And if deadlines are missed, reputations can be hit. Not to mention fines levied.
Underlining this, one of the respondents in our research said, “We’re under constant pressure to meet regulatory deadlines immediately, but the rising costs threaten our bottom line – we need a cost-effective approach that doesn’t sacrifice speed.”
To cut through these worries, businesses need solutions that streamline regulatory filings, minimising the time and effort required. Manual processes should be replaced with automation that can work fast to respond with urgency. In fact, many filings must be completed with e-filing software, making this a necessity. This has the added benefit of handling the rising tide of regulation without eroding margins. And with a cloud-based software solution providing continuous upgrades and updates, businesses can avoid the pitfalls of missed deadlines.
Customer worries
Another major source of worry is client servicing. Expectations are high and customers want to know their data is safe, confidential and reliably stored. Only by doing so can businesses foster trust and build long-term relationships.
Modern clients also demand digital access to their data via online portals that not only meet their current needs but adapt to their changing behaviours. These need to be accessible across different jurisdictions and time zones. Ultimately, these portals need to be user-friendly, intuitive and easy-to-use. With the explosion in open banking, customers have become used to seamless interactions and want to manage their details as easily as they can transfer money in a banking app.
This calls for a client servicing portal that’s engineered on a robust and secure infrastructure, which also prioritises cost-effectiveness. It requires rigorous security protocols and data management practices to ensure trust, confidentiality, and reliability in every client interaction.
And it must be as good – or better – than the apps customers use every day. User experience that considers global audiences is essential. Without this, customers are likely to move – especially as wealth begins to transition to younger age groups. While a printed document or even a PDF might have sufficed for older generations, tomorrow’s customers won’t accept anything other than digital services, wherever they are.
Tech worries
Of course, introducing modern technology is itself stressful. The prospect of migrating to a new system is fraught with concerns – especially when the stakes are high. In fact, it’s been likened to open-heart surgery. Leaders worry about cost, disruption, integration of new and old data, and the impact it will have on the bottom line.
The key to overcoming this is to stay focussed on the strategic goal of the project and to see challenges as hurdles to be jumped, rather than barriers that stop progress. Most of the time, these relate to people and processes rather than technological issues. Therefore, the role of change management is perhaps the key ingredient for success.
As a result, any business introducing new software must have buy-in for the project at a senior level from a sponsor, who ensures the implementation gets the resources it needs and can navigate the politics of a business. There also needs to be a champion, who ‘markets’ the new systems to users. They need to be diplomatic fixers, who can bring end users on the journey. Then there should be a project manager, who keeps everything on track, and an integrator who smooths over conflict and aids clear communication.
The result won’t be pain free, but in the long term, it will reduce worry and improve a business. Furthermore, it should be seen as an investment rather than a challenge-laden cost. Because it will offer benefits such as structure over clutter, truth over guesswork, best practice over muddling though, and repeatable process over individual skill. The payback is then the ability to focus on growth not admin.
The alternative is inertia – to continue doing things as they have always been done. But this is merely kicking the can down the road while employees continue to worry. Allowing competitors take action, screaming past with advantage. It’s delaying the inevitable at best and allowing a business to flounder at worst.
And every day without change makes the situation worse. Because regulation is unforgiving. Dealing with it can feel like a Sisyphean task, pushing a boulder up a hill only for it to roll back to the bottom. Forever. So, now’s the time to consider how new ways of working can address the single constant that unites our industry: worry.
The author, Paul White, is a Chief Marketing Officer at Quantios.
