Mastering Changes In Regulated Products
The question of how to approach real-time changes required by a regulation agency without losing your steady rate of output from the development team is a tricky one. While there are no magic tricks here, it’s definitely doable.
To start with, a regulated business comes with its own set of challenges. Whatever the line of business might be, you could find yourself in a position where you need to comply with certain rules and regulations that will keep your development team busy for days, if not weeks or months.
Fintech companies often find themselves under a lot of pressure to comply with numerous regulations. A shortlist for a single company can contain FCA, DNB, GDPR, FATF, European Commission and even Israel’s Capital Market Authority, Insurance and Savings. Planning for success with the ever-growing costs of regulation administration and enforcement is becoming more challenging than ever before.
Prior to diving into details, it’s important to understand that there is not a single recipe that resolves all pain points. Rather, there are courses of action you should consider according to the specific case you are managing at a given time.
Outsourcing Can Be A Bliss
In some cases, it is not only possible and feasible but also recommended to outsource your regulatory work. For example, you have to ask your customer to sign a declaration or fill up a form. Why not use Google Forms or 3rd party solutions if possible? If this form is required infrequently or once in your customers’ lifetime, it might be a sign that you should consider outsourcing. If there is a company/vendor that specializes in solving the specific issue you’re struggling with, it’s also a good sign you might want to consider outsourcing.
Research The Required Change
Researching is an inherent part of a Product Manager’s life, and this case is no different. During the research phase, you (the Product Manager) can find various solutions to the regulatory requirement you’re struggling with and it might get to a point where you understand that the perfect solution is already out there. In some cases, you won’t be able to find the right solution for your needs and you will have to plan and build your own solution. If that’s the case, don’t be afraid to challenge the regulatory authorities. Also, this is how innovation often works.
Challenge The Regulator
Not all regulations are born equal. Sometimes, the regulatory agency will give you vague guidelines to follow while on other occasions the guideline will be detailed instructions and specifications that you simply must follow. If the former is the case, do your best to plan for the best customer experience with the least amount of effort and impact on your core product. Share this plan with representatives of the regulator to get their “thumbs up” and move forward with your suggestion. You will be surprised at how many times Product Managers over-plan or over-complicate their solution, just to be on the safe side.
Evaluate-Communicate-Update
Having a structured solution to an everyday problem is not only great but also essential. There are three simple steps you must take to make sure the business is completely aligned with the latest regulatory requirements. Here they are:
Step #1. Evaluate the required changes’ cost and impact on the upcoming plans you had so far.
Step #2. Communicate these changes to all relevant stakeholders.
Step #3. Once you have the acknowledgment from the relevant stakeholders, it’s a good time to update your roadmap and plans accordingly.
Be Non-Compliant
Last, but definitely not least is the course of action you should carefully consider. In some cases, a business would prefer to take the risk of being non-compliant, which comes with all the potential implications (monetary cost, impact on the business, legal aspects, etc.). It could be a decision to be non-compliant for a certain amount of time (usually in order to complete other initiatives), or in rare situations, to stay non-compliant as long as it’s not posing an existential risk to the business. Personally, I would do my best to avoid these situations, but sometimes facing these challenges is the best course of action.
Not a Blocker
Product Managers all over the world are meeting these situations on a daily basis. Of course, every PM and the business they advocate for are different. Still, reviewing the suggestions above with an open mind can prove to be helpful whether you end up using one or a combination of a few of the tips given above. Note that your roadmap should not take a hit with every request coming from a regulatory agency or internal stakeholders. You can mitigate with careful planning, evaluating, and communicating the unexpected changes ahead. In the end, it all comes down to the desired outcome and the impact on your customers. Good luck!
