Maritz Research
Transcription
Maritz Research
™ Maritz Research Monitoring Compliance with Consumer Protection Regulations ™ CrowsNest™ by Maritz Research provides an assessment of a financial institution’s regulatory compliance. CrowsNest™ enables an institution to independently determine how well employees are following internal compliance guidelines while providing a better understanding of how their customers are responding to these guidelines in practice. CrowsNest™ identifies and evaluates an institution’s compliance vulnerabilities and, subsequently, determines actions for addressing deficiencies. Noncompliance directly and negatively impacts the bottom line, making it imperative every employee follow internal policies and procedures. In addition to the operational elements, CrowsNest™ evaluates how well the institution is interpreting and addressing federal regulations pertaining to product offerings and customer communications from both behavioral and customer experience perspectives. Monitoring Regulatory Compliance Financial institutions failing to comply with today’s strict industry regulatory standards risk facing great adversity, including legal action, large fines, bad publicity, and severe penalties. Banks that proactively monitor their compliance with federal regulations through CrowsNest™ will reap the rewards by avoiding penalties and negative press while gaining the confidence of their customers, regulators, and key stakeholders. Page 1 Regulated institutions must be proactive in monitoring their compliance processes in an effort to ensure every regulation is followed, particularly as the regulations pertain to consumer services. Maritz Research helps financial services firms monitor and document processes that have been implemented in response to a much more strict regulatory environment. Specifically, Maritz Research offers CrowsNest™, a mystery shop and call solution to: • • Confirm that standard business operating policies are being followed Proactively monitor compliance with regulations and create reports that can be provided quickly to internal managers to support coaching, and to regulators to help demonstrate compliance • Reduce the risk of incurring penalties by early detection of any noncompliance Addressing Regulatory Requirements Maritz Research’s CrowsNest™ regulatory mystery shop programs focus on assessing compliance with different federal regulations (CFPB, FRB, OCC) considering: 1.Front-line employee’s (including branch staff, call center staff, mortgage servicing staff, personal wealth relationship 2.Disclosures and other information from various communication sources (including general websites, secure online managers, etc.) implementation of new processes and procedures tied to regulations banking sites, direct mail, in-branch materials/collateral, and customer statements) Regulation Retail Banking (e.g. Regulations Z, E, DD) Shopping Scenario • Audit of in-person, call-center, or online communication at • • CARD Act time of an account opening, inquiry, or application Assessment of information received via email and/or mail following application or inquiry Handling of customer service and complaints in-person, via telephone, or online • Audit of in-person, call-center, or online communication • • at time of credit card inquiry or application Assessment of information received via email and/or mail following application or acquisition of credit card Handling of customer service and complaints in-person, via telephone, or online Mortgage Reform • Audit of in-person and written communication at time of home loan inquiry, application, and servicing • Audit of compliance with origination and underwriting, and • Verbal disclosure of rates • Written disclosures provided on request • Clear communication about rates • Lack of deceptive or unlawful behavior • Information about variable rates • Information about how rates are determined • Transaction limitations servicing regulations in-person, online, or via call-center • Contact information at the bank change in terms, etc. (whether in person, via online, and complaints in-person, via telephone, or online) • Overdraft protection • Handling of customer service issues to include: billing, payments, Investor Protections & Improvements to Regulations Securities Potential Vulnerabilities • Assessment (in-person or via telephone) of broker • EFTs possibilities and limitations compliance with rules enacted by SEC • Information about fees Solution Details • Program implementation and monitoring could be ongoing, with daily access to data via online reporting portal and monthly or quarterly executive summary reports • Clients have the ability to customize the scope of the mystery shop interactions based on how their organization translates the regulations into processes and procedures impacting customers’ experiences • Ability to focus mystery shop interaction on potential trouble areas (e.g., noncompliant or high-volume locations) Maritz Research develops new compliance assessment solutions as new regulations are enacted. Page 2 One Example: Compliance with Regulation Z Maritz Research created a mystery shop solution for a retail bank that combined two separate mystery shop events to monitor branch-level compliance with Regulation Z. (This included general websites, secure online banking sites, direct mail, and statements.) 1. A Telephone Mystery Shop The shopper calls the target branch and, using multiple “scenarios,” requests additional information be mailed to their home. 2. An In-Branch Mystery Shop The shopper visits the same branch and, using one of the provided “scenarios,” requests additional information. While there, the shopper also retrieves a business card for target branch address verification. In both shop events, photos of the appropriate documentation are captured and submitted (as part of the overall shop results). The shopper visits the same branch and, using one of the provided “scenarios,” requests additional information. Results Delivered Online Completed and quality-checked shop results are made available through a web-reporting solution. The web solution provides the opportunity to quickly identify problem branches and verify the accuracy of findings (by reviewing shop photos) prior to addressing with the branch. The Value Monitoring compliance with federal regulations allows the bank to address noncompliance issues quickly and ensure proper procedures and customer handling practices are in place to instill customer confidence. In Summary This compliance mystery shop program remains a critical element in our client’s retail banking process, ensuring conformance with extensive banking regulation changes. The results provided our client with: • A supplementary evaluation of compliance related to specific regulations • A third-party assessment of strengths and vulnerabilities related to compliance • Hot-alert system to identify locations that have certain levels of compliance • Dynamic online reporting system to report results by location, various levels of the organization, by situation, and expected behaviors Page 3 Business Intelligence The best mechanism for quickly and effectively distributing results from the compliance mystery shop program is through an online reporting system. This includes insights delivered in the form of executive summary reports. Maritz Research provides online reporting systems for many mystery shop programs. Below are a few screenshots of existing sites. Benefits of Maritz’ online reporting include: • Timely access to mystery shop results • Quick identification of noncompliance issues • View performance across multiple channels or regulations • Insights via executive summary level reporting • Access to industry experts to help interpret and recommend • Ability to share results with large groups. Personalized results can be provided to various levels of the bank’s organization (e.g., individual branch, call center, or regional managers) • Capacity to view trends over time Dashboard with Key Results Location-level Scorecard Individual Shop Results Page 4 About Our Offerings Maritz Research leverages the expertise and resources of our Financial Services Research Group to offer mystery shopping solutions specifically targeted to explore our clients’ regulatory compliance. As a unit of one of the world’s largest marketing research firms, the Maritz Research financial services marketing research team delivers the knowledge of over 150 dedicated industry experts who work with over 50 of the world’s largest financial services firms. The depth and breadth of our expertise is unparalleled. Annually, Maritz Research contacts more than seven million people on behalf of our financial services clients. CrowsNest™ is a product of Maritz Research’s expertise in the financial services industry, coupled with our knowledge of regulatory policy requirements and our experience to navigate through the dynamic compliance environment. Subject Matter Expertise • Financial services sector-focus with extensive experience in retail banking, • Annually conduct over 300,000 shops/audits • Currently conduct regulation compliance mystery shopping programs • 40+ years of experience in senior legal advice, federal bank, and multi-national mortgage, credit card, insurance, and investment services Maritz Research is a leader in the mystery shopping industry. payment enterprise regulations Mystery Shopping Discipline • A leader in the mystery shopping industry • Charter member of Mystery Shopping Providers Association • Dedicated mystery shop project, field, and IT resources • U.S. coverage with over 90,000 shoppers • Conduct in-person, telephone, and online mystery shops/audits Quality-Focused Operations • ISO 20252 Certified • Project teams comprised of financial services, regulatory and compliance, research, • and mystery shop subject matter experts Proprietary IT system (Virtuoso® – V2) and web-based reporting system which provides easy-to-use reports for our clients ™ • Proactively monitor regulatory compliance with regulations and internal guidelines • Provide insights into customers’ interactions with and understanding of products, terms, and processes Page 5 • Provide reports to demonstrate compliance to regulators • Identify opportunities to address vulnerabilities through employee coaching • R educe risk of incurring penalties through early detection of noncompliance • Address remediation and consent orders concerns About Maritz Research Maritz Research is a leading provider of strategic and tactical solutions to successful organizations worldwide. We’ve consulted with blue-chip companies for nearly 40 years. Our elite marketing science team and subject matter experts develop and use leading-edge research methods and advanced decision analytics to provide practical, actionable thought leadership targeted at the financial services industry. Based on our expertise in financial services, and detailed understanding of your company and customers, we deliver advice you can put into action. To ensure your success, we offer comprehensive research and performance measurement services. Contact Information For more information, please contact your Maritz Research Account Manager or contact us by phone at: (877) 4 MARITZ or email at: [email protected] www.maritzresearch.com/crowsnest RESEARCH © 2013 Maritz Research, Inc. All rights reserved.