Is It Possible to Implement New Regulations without Increasing Complexity and Cost? The Journey toward Suitable and Sustainable Wealth Management

<jats:p>As banks transition toward sustainable and digital finance, they face increasing regulatory and cost pressures, alongside growing client demands for transparency, added value, and execution speed. This research investigates whether new regulations, such as Environmental, Social, and Governance (ESG) requirements, can be implemented without adding complexity or increasing costs. Using ESG suitability considerations in the Advisory Investment Process as a case study, this study developed a scalable methodology and toolbox grounded in lean management principles and advanced digital tools, validated with a sample of Swiss private banks. These findings underscore the potential for substantial process improvements, including possible cost reductions of up to 60% and a return on investment (ROI) of 84%, while ensuring regulatory compliance. Conducted within a Community of Practice framework, the research leveraged industry expertise and academic insights through an iterative design-science-based methodology. This chapter offers practitioners actionable solutions to optimize processes, supported by quantitative results from key advisory stages. For academics, it underscores the value of collaborative research, showcasing how a Community of Practice bridges theory and industry needs. By demonstrating the feasibility of combining efficiency with compliance, this study provides a roadmap to address regulatory challenges in wealth management and beyond.</jats:p>