Most companies treat regulation as a burden. Something to endure, comply with, and minimize. John J. McNamara has spent his career operating in highly regulated environments, leading teams at federal agencies like the Consumer Financial Protection Bureau and now as Chief Growth Officer at Avtal, proving that regulations aren’t just rules to follow but lagging indicators of how to lead.
There’s a hidden edge most companies overlook. Regulatory strategy, approached proactively rather than reactively, becomes a competitive differentiator that shapes markets instead of just responding to them.
Using regulatory strategy as an advantage requires being first to the table instead of last to react, building compliance into brand promise as a market differentiator, and aligning regulatory foresight with product strategy to identify white space competitors miss.
Be the First to the Table, Not the Last to React
When a new regulation is proposed, most firms scramble to react.
“Companies that engage proactively with regulators often find themselves shaping the standards others have to follow,” McNamara explains. “Smart firms are tracking consumer sentiment at the state and local level, long before rules are even contemplated.”
As CMO of Live Ox, McNamara saw how early engagement changed outcomes. Organizations that wait for final rules often find themselves constrained by standards they had no input on shaping.
“Always remember that people are policy,” McNamara notes. “The relationships, good and bad, impact outcomes for and against the industry. Friendly engagement and open dialogue from the industry to me as a regulator was always appreciated.”
Working at the CFPB, McNamara observed which companies regulators viewed as partners versus adversaries. The distinction mattered. Partners who shared insights and helped create informed rulemakers got hearings when raising concerns. Adversaries who fought every proposed rule regardless of merit found regulators less receptive when legitimate issues emerged.
“The best aspire to share insights and create the most informed rule makers possible,” McNamara explains. “They also pick their battles. Too many rail against any proposed rule when it’s a given that the rule will happen. The smart ones try to bend the arc where the regulators may have knowledge gaps.”
Build Compliance Into Your Brand Promise
Today’s consumers don’t just want speed. They want safety, transparency, and trust. Positioning compliance posture as part of the customer value proposition can be a market differentiator.
“At Avtal, we align regulatory rigor with brand trust, and that’s been a key to our growth narrative,” McNamara notes.
Most companies treat compliance as a back-office obligation separate from brand and marketing. This misses the opportunity to convert regulatory strength into a customer-facing advantage.
Working at the CFPB, McNamara observed companies using principle-based approaches to managing through uncertain areas of regulatory regimes. “It’s not ideal, but it’s a smart play when encountering those uncertain thickets,” he explains.
When regulations are ambiguous, companies face a choice: avoid activity until clarity emerges, or operate based on regulatory principles even without explicit guidance. The second approach carries risk but also creates a first-mover advantage. Companies that develop reasonable interpretations of principles, document their reasoning, and engage regulators transparently often establish practices that become industry standards.
Align Regulatory Foresight With Product Strategy
Too many organizations isolate compliance teams. When legal, policy, and product work together, they can identify white space others miss.
“Emerging regulations often hint at new consumer protections, market gaps, or standards that will reshape entire industries,” McNamara explains. “With that insight, you can build a product around before your competitors even notice.”
Regulations emerge from problems regulators observe in markets. Consumer complaints about the lack of transparency in pricing, for example, may lead to disclosure requirements. Data breaches lead to security standards. Predatory practices lead to conduct rules. Each regulatory response reveals unmet consumer needs or market failures.
Companies that treat regulatory developments purely as compliance obligations miss these signals. Companies that analyze why regulations emerge can identify consumer pain points competitors haven’t addressed and build products that solve problems before regulations mandate solutions.
“Watch the headlines, too,” McNamara advises. “Headlines indicate when consumers have had enough, and sometimes outrage is a prologue to regulation.”
Product teams aligned with regulatory foresight can build solutions that address emerging consumer concerns before competitors recognize market shifts or regulations force change. This allows early movers to establish market position while competitors scramble to comply with new requirements.
Lead, Don’t Just Follow
After years of leading teams in federal agencies and now as Chief Growth Officer at Avtal, McNamara urges not to treat regulatory strategy as an obligation but as part of the growth playbook.
“Those who understand the rules and their customers best are best positioned to change the game,” McNamara concludes.
Regulatory strategy, approached intentionally, becomes the ultimate growth lever, one that doesn’t show up in product roadmaps or investor decks but reshapes markets for companies willing to lead instead of follow.
Connect with J. McNamara on LinkedIn for insights on regulatory strategy and growth in highly regulated industries.
