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Is your finance function built for scale?


Scaling finance at the speed of growth: Why managed services are becoming the operating model of choice in regulated markets.


In brief

  • Fast-growth companies in regulated markets face talent shortages, rising compliance demands and growing operational complexity.
  • Managed services help regulated businesses scale quickly while maintaining strong governance, reporting and compliance.
  • A cloud-based operating model reduces risk, improves resilience and supports long-term growth without rebuilding infrastructure.

For fast-growth companies, timing is everything. New market opportunities emerge quickly, investor expectations evolve rapidly and competitive advantage often depends on the ability to scale fast and outpace competitors. Yet for many organizations, growth ambitions run into an unexpected obstacle: building the finance and operations infrastructure needed to support expansion.

The challenge is particularly acute in regulated markets. Whether entering financial services, insurance, healthcare, energy or other highly regulated sectors, organizations must establish robust governance, reporting and compliance capabilities from day one. They need to move quickly without compromising control. They need scalable infrastructure without lengthy implementation timelines. And they need confidence that their operating model can support growth long after launch.

Increasingly, organizations are leveraging integrated finance managed services as a scalable solution to establish finance and operations capabilities at speed. By combining experienced talent, proven processes and cloud-based technology platforms, managed services enable organizations to accelerate market entry, maintain compliance and build a foundation for long-term growth.

Restraints to scaling the finance function in-house

When companies enter periods of rapid expansion, finance often becomes one of the first operational bottlenecks.

What are the main hurdles to building finance capacity internally?

For organizations focused on growth, the traditional response of building every capability internally can become a distraction from the very opportunities they are trying to pursue. Assembling a fully functioning finance organization takes time. Building a proactive, data-driven finance function becomes increasingly challenging as experienced talent with specialized expertise in technical accounting, tax, consolidation, reporting and finance technology becomes harder to find. Reliance on a handful of key individuals often creates additional risk. Putting the operations infrastructure in place with multiple systems and a range of technology capabilities likewise involves considerable and continuous investment.

For organizations focused on growth, the traditional response of building every capability internally can become a distraction from the very opportunities they are trying to pursue.

Why regulated markets raise the stakes

While every growth company faces operational complexity, organizations operating in regulated markets encounter an additional layer of pressure. Licenses need to be obtained and rigorous processes, controls and documentation put in place to satisfy regulatory requirements, which continue to evolve across different jurisdictions. New accounting standards, sustainability reporting requirements, tax transparency obligations and industry-specific regulations increase both the volume and complexity of reporting expectations. Investors and other stakeholders, too, demand greater transparency, stronger governance and faster access to information.

 

In this environment, operational gaps can quickly become strategic risks. A delayed close, inconsistent reporting process or weak control framework can undermine stakeholder confidence, slow growth initiatives and expose the organization to regulatory scrutiny. Finance leaders therefore need robust operating models that provide both speed and control from the outset.

 

When growth cannot wait for operations to catch up

Consider the experience of Chariot Re, a newly established Bermuda-based life and annuity reinsurer backed by world-class sponsors MetLife and General Atlantic. The company’s challenge was creating the operational infrastructure required to support its growth strategy. Before it could begin writing business, Chariot Re needed a fully functioning finance and reporting capability, governance framework, regulatory compliance processes and supporting technology platform. It also needed access to specialist talent capable of operating within a highly regulated environment.

 

Rather than building these capabilities internally, Chariot Re adopted a managed services model that provided access to an integrated operating platform, scalable processes, governance controls and specialist expertise from day one. The approach enabled the company to hit the ground running with confidence, and within six months of launch it had completed its first US$10 billion transaction. 

Fully operational within
6 months
6 months
of launch

For new market entrants, particularly in regulated industries, the lesson is clear. Managed services can provide a ready-made finance and operations infrastructure that would otherwise take months or years to build internally, enabling organizations to focus on capturing market opportunities rather than constructing back-office capabilities.

Managed services can provide a ready-made finance and operations infrastructure that would otherwise take months or years to build internally, enabling organizations to focus on capturing market opportunities.

Integrated managed services as a growth enabler

Rather than viewing finance operations as a collection of disconnected activities supported by multiple providers, organizations are increasingly adopting integrated finance managed services models that bring people, processes and technology together under a single operating framework.

What do integrated finance managed services cover?

The objective is not simply outsourcing administrative tasks. It is creating a finance function capable of supporting growth from day one without compromising on quality, compliance or strategic focus.

Modern managed services can provide immediate access to critical capabilities across finance and accounting, tax compliance and reporting, treasury operations, stock administration, payroll, human resources support and board reporting. Organizations have a trusted partner through whom they gain immediate access to experienced professionals, established methodologies and enabling technologies without the delays associated with building those capabilities internally or finding an external provider for each task.

How does this benefit the organization?

This approach allows leadership teams to focus on strategic priorities while maintaining confidence that critical operational functions are being managed effectively. More importantly, it helps organizations scale without continually rebuilding infrastructure as business needs evolve.

Whether entering new markets, integrating acquisitions, pursuing new investment opportunities or preparing for a public offering, organizations can adapt their operating model without starting from scratch.

Building control into the operating model from day one

One of the greatest misconceptions about speed is that it requires compromise. In reality, organizations that scale successfully are often those that establish stronger governance foundations earlier in their growth journey.

How can managed services help to establish governance foundations early on?

Managed services embed standardized processes, documented controls and established reporting frameworks into day-to-day operations, enabling an organizational environment that supports both compliance and growth. SOC-certified control frameworks, integrated governance structures and access to technical accounting expertise provide confidence that finance operations are being executed consistently and effectively.

For organizations in regulated markets, this helps strengthen stakeholder confidence, reduce operational risk and create greater readiness for future growth opportunities. Rather than introducing governance processes only when preparing for an IPO, financing event or regulatory review, organizations can establish these disciplines from the beginning. In effect, companies begin operating at a level of maturity that supports long-term ambition rather than reacting to requirements as they emerge.

Scaling through a cloud-based technology foundation

The most successful finance functions combine technology and operating models rather than treating them as separate initiatives.

What role do cloud-based platforms play?

Cloud-based platforms such as SAP S/4HANA provide a powerful foundation for this approach. By establishing a modern digital core from the outset, organizations gain the flexibility to scale finance operations as the business grows while avoiding the disruption of repeated system redesigns. Innovative technology permits efficiently processing even complex transactions, thereby increasing organizational agility.

A cloud-based finance platform also provides access to real-time data, automated workflows and integrated reporting capabilities. Leaders gain faster insight into performance, stronger control over financial processes and the ability to make informed decisions based on timely information rather than historical reports.

A model designed for resilience

Perhaps the most overlooked benefit of managed services is resilience.

How can managed services reduce dependency on critical roles?

Managed services help reduce this dependency by providing access to broader teams with expertise spanning finance, tax, payroll, reporting, regulatory compliance and technology. Organizations gain a competent partner at their side who has a deep understanding of their business and is aligned with their priorities. They benefit from established processes, continuous training and scalable delivery models that can adapt to changing business requirements.

The resulting resilience becomes particularly valuable during periods of transformation, growth, restructuring or regulatory change.

Turning operational readiness into a competitive advantage

As regulatory expectations increase, technology advances and competition for talent intensifies, traditional approaches to building finance organizations are becoming harder to sustain. Managed services offer an alternative path: one that combines experienced talent, proven controls and cloud-based technology within a scalable operating model.

For organizations operating in regulated markets, this model provides something increasingly valuable: the ability to move fast without losing control. As the experience of Chariot Re demonstrates, the right managed services model can do more than support compliance and efficiency. It can accelerate market entry, reduce execution and compliance risk and provide the scalable foundation needed to pursue ambitious growth plans with confidence.

In an environment where speed and control are equally important, managed services can turn operational readiness into a source of competitive advantage rather than an obstacle to growth.


Summary

Fast-growth companies, particularly in regulated industries, often struggle to scale because finance, compliance and operational capabilities cannot keep pace with expansion. Talent shortages, increasing regulatory requirements and rising technology costs make building these functions in-house slow and complex. Integrated finance managed services offer an alternative by combining specialist expertise, standardized processes and cloud-based technology into a scalable operating model. Forerunners demonstrate how this approach can accelerate market entry, strengthen governance, reduce execution risk and provide the resilient foundation needed to support long-term growth while maintaining compliance and control.


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Japanese businesswoman ascending an escalator in a sleek blazer and handbag, symbolizing career progress

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