Solving Compliance Challenges Across Digital Channels
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The document discusses the compliance challenges faced by financial institutions in the mortgage industry and outlines how regulations impact both lenders and home buyers. It emphasizes the need for financial institutions to streamline operations and leverage technology to enhance customer experiences while staying compliant. Strategies include creating master customer profiles and utilizing digital asset management to effectively manage and deliver content across channels.
![Q&A
Nick Christy
SVP Enterprise Technology
R2integrated-Digital Marketing & Technology
[P] 410-369-3777 | [M] 410-459-2410
nchristy@r2integrated.com | www.r2integrated.com
Locations in: Baltimore • Seattle • Boston
Twitter: @NickChristy | Skype: NickChristy
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Solving Compliance Challenges Across Digital Channels
- 1. Presented to: NetFinance Solving Compliance Challenges Across Digital Channels
- 2. ABOUT R2I
- 3. ABOUT R2I
- 4. GOALS Financial institutions are driven by a core set of business goals. Compliance and regulatory laws can stand in the way of achieving those goals. Compliance and Regulations • SOX • RESPA • “Do not call” • “Can Spam” • GLB Act • PCI-DSS • Equal Credit Opportunity • Home Mortgage Disclosure Business Goals • Acquire new clients • Upsell existing clients • Keep existing clients • Nurture relationships • Expand product offerings • Reach new markets • Increase operational efficiencies Situation Overview
- 5. GOALS Homeowners need mortgages and originators are paid on commission to provide mortgages, yet regulations and compliance present several challenges: Challenges home buyers face: • Compliance impacts to getting a mortgage Challenges lenders face: • Mortgage fines • Settlements • RESPA violations Situation Overview
- 6. In early December 2013, 6 of the leading financial institutions agreed to pay $23.3 billion in mortgage settlements. Source: Forbes, December 11, 2013
- 7. Wall Street banks and foreign rivals paid out more than $100 billion in U.S. legal settlements since the financial crisis. Source: Financial Times, March 25, 2014
- 8. GOALS Compliance regulations are here to stay and will become more restrictive. How do we address the opportunities created by these guidelines? • How other industries handle managing customers, content, marketing and technology • How financial institutions handle it Why Can’t This Be Easy?
- 9. GOALS
- 10. GOALS How Financial Institutions Address The Opportunity
- 11. GOALS No single source of data • Increased operational costs • Missed opportunities to connect with potential clients • Heavy overhead for new business initiatives • No attributions or digital profile connected to opportunities Why Can’t This Be Easy?
- 12. GOALS
- 13. EXAMPLE SCENARIO Scotts Company: • Mortgage provider • Has 3,000 national branches • Has a website to provide reach outside of his brick and mortar branches • Has a fully staffed call center for potential customer inquiries • Needs to reduce operational cost • Wants to employ a national marketing campaign to increase revenues Opportunities: • Drive online applications – cheaper and more efficient then local branches • Reduce calls into call center by providing online touch points • Reach new markets by taking advantage of social campaigns to provide “word of mouth” referrals to his bank • Provide a personalized online experience for various customer segments SCOTT, CEO Compliance and Regulations have traditionally slowed these opportunities Get Better, Faster, Stronger…
- 14. COMPLIANCE ISSUES More online applications result in: • Less operational costs than traditional phone/mail applications • More revenue from greater reach Compliance issues: • Regulations vary from state to state—identify geographic limitations • Challenged to verify applicant identity without identification • Responsibility for fraud • Managing rule and regulation updates and quickly updating traffic drivers Driving Online Applications
- 15. COMPLIANCE ISSUES Streamline the process: • Create a single master profile for each applicant • Attach regulations to a master record • E-identify applicants / users • Push regulation changes to all channels from a single repository Driving Online Applications
- 16. COMPLIANCE ISSUES Streamline the process: • Add more self-service options reduces operational costs • Digital communications reduces risk Compliance issues: • Accurately automating a process with hundreds of variables • Adjusting to change with a documentation trail • Managing rule and regulation updates and quickly updating traffic drivers Don’t eliminate call centers: • Reduce operational costs through personalization • Access the master profile for every touch point • Create online touch points to eliminate call center traffic • Allow call center to serve as point of reassurance Reduction in Call Center Costs
- 17. 47% of financial institutions state that their call centers help increase market penetration; 72% state they expected it to do so Source: Call Centers in Financial Services: Strategies, Technologies, and Operations, NYU / University of California - Berkeley
- 18. COMPLIANCE ISSUES • Financial transactions are trust-based • More word of mouth referrals drives more leads and in turn more revenue Compliance issues: • Breach of personal information • Need content to spread socially but need control over content • Fear of interpretation Embrace technology • Social networks, email, display advertising, thought leadership content • Compliance can integrate with technology and content so long as risk is not introduced • Leverage content repository with an editorial calendar to broaden outreach in approved process Reduction New Markets
- 19. COMPLIANCE ISSUES • Personalizing products online reduces need for branch visits • Better personalization improves conversion rates and drives revenue Compliance issues: • Delivering personalization within privacy law policies • Creating customer segmentation borders on unfair lending practice laws • Managing inappropriate segmentation Embrace technology and analytics: • Use analytics tied to customer profile • Create online segmentation based on analytics • Use single content repository to reach customer segments Personalization
- 20. COMPLIANCE ISSUES • Reacting quickly to constant changes in rules and regulations • Identifying the audience without breaching privacy or unfair lending laws • Recognizing that documentation means accountability • Maintaining a personalized level of customer service without a direct personal interaction Stop it. Your industry is behind. Be aware of concerns— don’t let them hold you back. What Are My Main Concerns? Digital = Complicated Compliance = Complicated Digital + Compliance = High Individual Risk
- 21. Do it right.. And stay compliant
- 22. • Create a single repository for content • Streamline delivery of content to all channels • Update content with single action and cross-channel distribution THE BIG IDEA The Big Idea: Digital Asset Management
- 23. All of your customer’s data is publically available to you—use it. THE BIG IDEA The Big Idea: Master Customer Profile
- 24. Use a marketing program that can tie your customer data together to create a personalized online experience. THE BIG IDEA The Big Idea: Master Customer Profile
- 25. Tie it together…
- 26. Delivering a truly custom experience requires in-depth knowledge of each potential borrower’s online and offline behaviors. What does that mean? What we know: • Rachel is a first time visitor to the site • Rachel spent 2.5 minutes on the site and visited 3 pages • Rachel is interested in purchasing her first home • Rachel was referred to the site via a Google search What we don’t know: • Why did Rachel leave the site? • Is Rachel ready to buy or just researching her options? • What are her purchasing habits? • What are Rachel’s interests? • How much does Rachel know about the home buying process? • Is Rachel financially qualified for home ownership? • What other mortgage sites has Rachel visited? • Is Rachel active on social media? • Has she contacted any mortgage providers by phone? • What types of mortgage related information is she researching? • Is Rachel primarily a mobile or desktop user? • What 3rd party resources does she engage with? MANAGING CUSTOMER EXPERIENCES Optimization: Creating Customized Experiences for Borrowers RACHEL JONES
- 27. Identify each potential borrower’s digital footprint and use data to create an optimal experience across all channels. This won’t break privacy laws What we know: • Rachel is a first time visitor to the site • Rachel spent 2.5 minutes on the site and visited 3 pages • Rachel is interested in purchasing her first home • Rachel was referred to the site via a Google search • Rachel is an active user of Facebook and YouTube • Rachel has researched loan options with Wells Fargo, Quicken Loans and Bank of America • Rachel is married to Adam and the couple is expecting their first child • Rachel is interested in purchasing a single family home in Baltimore County within the next six months • Rachel primarily uses her mobile phone to conduct online searches • Rachel and Adam identify as having a “good” credit rating This might break privacy laws What we don’t’ know: • Has Rachel completed a mortgage application with Wells Fargo, Quicken Loans and Bank of America? • Rachel’s household income? MANAGING CUSTOMER EXPERIENCES Optimization: Creating Customized Experiences for Borrowers RACHEL JONES
- 28. Buying your first home? Pre-qualify in 60 seconds. Purchasing your first home? Learn everything you need to know about the process and what to expect Download your first-time homebuyers toolkit download Value of pre-qualification for first-time home buyers Dear Rachel, Congratulations on beginning your journey to first time home ownership! We specialize in providing loans. We’ve been in the industry a long time and we’re here to help guide you through the process. We have a variety of tools and resources available to help you determine how much you can afford, compare loan options and rates and calculate your monthly payment. Calculator Pre-qualify Survey Toolkit Logo Rate table. MANAGING CUSTOMER EXPERIENCES Optimization: Creating Customized Experiences for Customers Take what we can and use and personalize for Rachel. Rate & Loan Calculator
- 29. But what about compliance?
- 30. COMPLIANCE ISSUES • Reacting quickly to constant changes in rules and regulations • Identifying the audience without breaching privacy or unfair lending laws • Recognizing that documentation means accountability • Maintaining a personalized level of customer service without a direct personal interaction • Digital + Compliance = High Individual Risk • Deploy a Digital Asset Management System • Use open and available data • Use offline analytics in an online program • Develop a master customer profile • Digital + Compliance = High Individual Reward What Are My Main Concerns And How Do I Solve For Them?
- 31. Q&A Nick Christy SVP Enterprise Technology R2integrated-Digital Marketing & Technology [P] 410-369-3777 | [M] 410-459-2410 nchristy@r2integrated.com | www.r2integrated.com Locations in: Baltimore • Seattle • Boston Twitter: @NickChristy | Skype: NickChristy http://www.linkedin.com/pub/nick-christy/3/ab4/759