3 minutes
Every credit union, no matter what size, faces regulatory compliance standards that have been developed to improve both the security of member accounts and ensure the clarity and transparency of financial transactions. Current federal laws can require things like an explanation of interest rates and contract liabilities for mortgages and other types of loans. If your organization collects member information online, you are also required to reveal what you do with that data.
Much of this is sent to the “fine print” location on your application forms, statements, electronic correspondence and even marketing materials. The specific content may be different from one legal jurisdiction to another, or can change with new governmental rulings. While compliance sets the bar for the minimum required within your member communications, forward-thinking credit unions will raise the bar.
Compliance language is designed to protect financial services organizations and their clients, but it’s often “communicated” as convoluted “legalese” that can confuse recipients or even arouse suspicions. Worse, as the number of regulatory requirements increases, compliance takes up more space without helping to improve the member experience or build the relationship members expect from their financial organization of choice, which houses detailed private information about them. This can run counter to your members’ expectations of attentive, personal service.
It is important to keep in mind that while compliance issues must be met, your member communications serve a higher purpose.
Instead of designing your forms and documents first to accommodate the compliance material, look at that language as a secondary—though necessary—element of your communication pieces. Think of your communication vehicles as a structure, with the mandatory language as a foundation that you can build upon with specific, personalized information about a member’s account, answers to their questions and requested product information.
Technology exists that makes it possible to develop a centralized communications portfolio that, via rules-based assembly structure, includes the various compliance pieces you need (i.e. selected Consumer Financial Protection Bureau, Federal Reserve Board and National Credit Union Administration regulations), but also provides the flexibility to personalize your outreach to members and improve the customer experience.
For example, a lending brochure could be personalized with images appropriate for the age demographic of a member and with a message such as, "I know you will enjoy your new Honda," while maintaining regulatory compliance.
Similarly, monthly statements can be constructed that include all necessary compliance language—even last-minute changes. For instance, if a new regulation is implemented, you—or your third-party service provider with the right technology—need to enter the new language only once in a centralized database and all the outgoing communications to relevant members will be updated automatically.
Critical documents like loan applications—that need to comply with regulations—also are important in member communications. Ideally, member data should be entered only once, archived in a central location and then be accessible for all later communications. This avoids wasting the time it takes to rekey data and eliminates potential errors.
A customer communications management system that automatically includes accurate, relevant compliance language reduces the risk that your organization isn’t complying with required regulations and relieves staff of the burden of remembering to collect all that must be included in a communication to a particular member. It can also speed response times to further improve service. Most importantly, it will reduce risk of exposure to costly legal liabilities through an electronic audit trail of all outbound communications.
With the proliferation of communications devices, the channel you use to deliver your compliant message can be as important to your members as the message itself. Many members will request traditional printed-and-mailed documents, while others prefer mobile options delivered via email, text, Facebook or Twitter.
Few of your members likely will care about the compliance information as much as the other content you send—their statements, correspondence, even promotional materials. While compliance with the laws isn’t optional, the real job of customer communication is providing service to satisfy members’ needs, and directly impacting the customer lifetime value for mutually beneficial relationships.
Clay McNaught is VP/enterprise, North America, for GMC Software Technology, a provider of multichannel and highly personalized document outputs for customer communications management.
