The REGTECH Book

Introducing the RegTech Quality Compass: The Five Factors of RegTech Quality

By Tobias Houdek

Senior Product and Marketing Manager, Investment Navigator

Regulatory and commercial pressure has significantly increased over the past decade, providing ground for fundamental changes in the financial services landscape and the emergence of the RegTech space. In such a thriving environment, why focus on quality from the very beginning? Because quality is a decisive basis for sustainable long-term success. Quality is directly linked to customer satisfaction, which in turn supports loyalty, pricing power, and the probability of lower costs, as well as ultimately improved company profitability.¹

According to the American Society for Quality (2017), ‘quality’ can refer to a products or services ability of either being free of deficiencies or fulfilling needs through performance or features as promised or implied.²

The SERVQUAL Dimensions in Brief

To assess service quality, Parasuraman et al. published in 1988³ the concept of SERVQUAL as a diagnostic tool to identify a company’s strengths and weaknesses in five service quality dimensions:

1. Responsiveness. Management of and adherence to time- and speed-related expectations.
2. Empathy. Ability to predict customer demands.
3. Assurance. Demonstrating politeness, skills, and avoidance of physical, financial, or social risks.
4. Reliability. Homogeneity of service performance.
5. Tangibles. Standard of the look and feel of facilities, staff, or marketing ...