New report urges regulators to be bold and embrace innovation: PA Consulting

03-Oct-2018

From watchdogs of industry to consumer champions...

PA Consulting, the innovation and transformation consultancy, today launches a report on the future of UK regulators. In the climate of fake news, consumer power, and rapidly evolving consumer expectations, the report identifies the need for regulators to remodel themselves as consumer champions, whilst continuing to fulfil their statutory duties.

The report, Re-thinking Regulators, is based on interviews with over 2,000 consumers, 500 regulated business, and 30 regulators. Key findings include:

• All sectors are looking to regulators to support innovation. Most organisations see regulators as enabling innovation (45 per cent) – as opposed to blocking it (26 per cent). Over the next five years, most want regulators to retain an enabling role, with nearly a third looking for regulators to drive innovation (31 per cent). That is particularly true in the financial services sector (20 per cent to 30 per cent).
  
• Expected loss of business and revenue dip if regulators don’t change. 92 per cent of businesses surveyed say that if regulators in their sector fail to evolve - in areas like processes, technology, manpower, and culture - they expect to feel a negative impact within three years. Expected revenue loss is 8 per cent on average.
  
• Organisations expect to lose a quarter of their business to disruptors in the next five years. 95 per cent of organisations expect at least some business activity or revenue to be lost to new or disruptive businesses in the next five years. Across sectors, this is expected to represent 20 per cent.