October 13, 2021

Good for Customers, Good for Compliance

Article

Why do we care?

How does a CXM platform help with regulatory compliance? At first glance, it would seem that managing a customer’s experience is a lower priority concern than keeping up with government regulations. After all, individual consumers don’t have the power to levy massive fines on a bank, or provide emergency relief in the case of an economic downturn. There would appear to be no connection between the two concerns at all, but that intuition is actually misleading. 

CXM platforms exist to provide banks and their subsidiary departments greater visibility into the processes and products that are offered across their organization. In essence, they deliver a clearer picture of where customers are sitting along their customer journey, and what steps must be taken to move them along. This provides an added benefit of knowing exactly what every team is responsible for, and when. So, when we talk about keeping up with regulatory compliance, it becomes clear that a better picture of where things are working, and where they may not be, is exactly in line with making sure that banks are following the rules set out by regulators.

Not reinventing the wheel

None of what we are discussing amounts to dramatically changing the operating practices or underlying infrastructure of banks (particularly as it relates to tech). What we envision is the use of tools, such as CXM Platforms, that allow those processes to run more smoothly, and without ripping out root infrastructure that would be incredibly costly to replace. It’s about moving forward, and moving toward better compliance practices, with what you already have.

Confronting the limitations of established systems and processes doesn’t need to mean ripping them out, root and stem. If you’ve got a top-down governing structure, as many banks have, we’re not advocating that it be revolutionized. Instead, we posit that more informed decisions can be made about how to confront challenges when more knowledge is available. For instance, if slews of customers are repeatedly getting stuck in a particular stage of an onboarding process, the head of that division should know about it - and know why. Without that information, they might not even know that they’re running afoul of CFPB regulations. They also wouldn’t know how to fix the problem.

Opportunities to get ahead

Banks, Financial Institutions, Credit Unions, and other highly regulated organizations have a unique opportunity to get ahead of the regulators by arming themselves with tools that can maximize the amount of oversight they have over their organizations. They can discover and respond to issues before they become systemic, and before they come to the attention of regulatory bodies. The best part of that is that if and when regulators come knocking, they’ll have all the information they need ready and available.