The Benefits Of Proactive Compliance In Tech

Professors Todd Haugh and Suneal Bedi of the Institute for Corporate Governance & Ethics at the Kelley School of Business at Indiana University recently published a paper: Retheorizing Corporate Compliance. In it they argued strongly that compliance needs to be seen not just as a defense against potential corporate legal liability. It also needs to be recognized as a proactive offensive tool for building market share and competitive advantage. On this podcast they explain that compliance creates numerous non-market strategies for helping the business. For example, organizations with stronger programs can demonstrate to regulators that they would be a good choice to acquire a troubled company. Leading compliance programs can also help to set the standard of practices for their industry, giving their organizations an advantage over those with lagging compliance practices. In sum, by thinking of how compliance can help the business, not just protect it, there are significant opportunities created to grow the business, and change the way people think about compliance. https://lnkd.in/gHndNhd8

I was recently speaking with group of industry peers, and our conversation took an interesting turn. They asked, “How can compliance be more than just a regulatory checkbox?” That sparked a discussion on outcome-based use cases—a shift that transforms compliance from a cost center into a business enabler. Traditionally, banks have approached compliance with a focus on meeting regulatory requirements—KYC, AML, stress testing. But what if we redefined success to focus on measurable business outcomes? Key pillars : - Clear Outcomes – Move beyond process completion to achieve tangible results (e.g., 30% faster onboarding). - Advanced Technology – Leverage AI/ML and predictive analytics for real-time insights and automation. - Feedback Loops – Continuously refine based on real-world results and evolving regulations. The benefits? Greater customer trust, operational efficiency, and regulatory confidence—all while making compliance a strategic value driver. This shift is happening now, and it’s changing the game. Interesting days ahead! #ComplianceInnovation #OutcomeDriven #RegTech #RiskManagement #DigitalTransformation #AIinBanking #BankingCompliance #OperationalExcellence #DataDrivenCompliance

Compliance done right transforms hurdles into frameworks for innovation and trust. Many in the development space view compliance with a certain level of animosity. Transforming compliance stakeholders from passive approvers to active participants represents a significant opportunity for organizations to accelerate innovation while maintaining regulatory integrity. By having compliance teams shoulder their own requirements rather than burdening innovators, organizations can unleash creative potential while improving compliance outcomes. This approach requires thoughtful organizational design, cultural transformation, and strategic implementation, but the benefits in terms of innovation acceleration and competitive advantage are substantial. The evidence from various industries suggests that this integration is not only possible but increasingly necessary in complex regulatory environments. Organizations that successfully implement this approach gain both speed and compliance advantages over competitors who maintain traditional siloed structures. As regulatory requirements continue to evolve and increase in complexity, the ability to integrate compliance considerations seamlessly into innovation processes will become an even more critical organizational capability. Doing this well isn’t easy. It requires leadership commitment, progressive implementation strategies, technology enablement, and clear accountability frameworks. By taking these steps, organizations can transform the relationship between compliance and innovation from one of tension to one of synergistic collaboration, ultimately delivering better products to market faster while maintaining regulatory excellence.

Regulation and innovation: two forces often seen at odds, but what if they're actually synergistic? In my latest blog post, co-written with Ian Sutcliffe, we challenge the common narrative that regulations stifle technological progress and business agility: https://bit.ly/44gfBBA Here are five tangible takeaways on how software excellence drives both innovation and compliance: * Compliance as a Catalyst: Regulatory requirements can drive organizations to modernize systems, improve data management, and enhance security practices. This "forced evolution" often results in more robust, efficient architectures that benefit the entire business. * Automation - The Compliance Accelerator: By automating compliance processes, organizations can reduce manual errors, streamline audits, and free up resources for innovation. Modern DevSecOps practices make continuous compliance a reality, turning a potential burden into a competitive advantage. * Transparency Breeds Trust: Well-implemented compliance measures create unprecedented visibility into systems and processes. This transparency not only satisfies regulators but also builds trust with customers and partners, opening doors to new business opportunities. * Scalability Through Standards: Standardized, compliant architectures and processes are inherently more scalable. As your business grows or enters new markets, a solid compliance foundation allows for rapid expansion without compromising security or regulatory adherence. * Innovation Within Constraints: Contrary to popular belief, constraints often fuel creativity. Regulatory requirements can inspire novel solutions that not only meet compliance needs but also drive business value in unexpected ways. The most successful organizations don't view compliance as a checkbox exercise, but as an integral part of their digital transformation journey. By embracing software excellence, companies can turn regulatory challenges into opportunities for differentiation and growth. How is your organization transforming compliance from a burden into a business enabler? Share your experiences below. #ComplianceInnovation #SoftwareExcellence #DigitalTransformation