The other day I received a phone call claiming all I had to do was press “1” to learn how violations of the FCRA could result in debt being forgiven/paid off. As curious as I was, the risk that it would just lead to more calls was enough that I declined to press “1″. It did get me to thinking, however, of the lucrative business that compliance has become.
No, compliance doesn’t make the bank money. But, it’s obviously making someone money. One of my favorite slides that you may see at one of our Live Training Events is the one that states, “Compliance protects the bank from something – sometimes we don’t know what yet! More details after next examination!” I’m not sure who should get the credit for that statement but isn’t it the truth?
Rules are simply a part of life. If someone comes to you for a product or service, there is a set of rules that goes along with it. Unfortunately though, it seems like compliance today has little to do with serving (customers) and is more about avoiding penalties (fines and front-page news). Compliance management systems hopefully help ensure disclosures are accurate; violations are kept to a minimum, and addressed appropriately if they do occur (we are human). How’s yours doing? A strong CMS can also be one of your best lines of defense to those customers looking to press “1”.
In our monthly, subscription newsletter, Banking on BCC, we recently began a series of articles on the ins and outs of compliance management. We’d love for you to check it out!