Can I Be Compliant and Efficient?

417 views

Published on

With the tsunami of new regulations from NCUA and the CFPB, getting good at compliance is becoming a key success factor for credit unions. In this podcast and presentation from the 2013 NAFCU Annual Conference, Toné Gibson explores how your credit union can develop a cost-effective approach to strike a better balance between compliance and operational efficiency. Through the utilization of three methodologies – strategic development, process excellence, and performance management – learn in detail how to reduce the cost of compliance.

Wolters Kluwer Financial Services is the NAFCU Services Preferred Partner for Consumer and Member Business Lending & Deposit Services. More educational resources and contact information are available at www.nafcu.org/wolterskluwer.

Published in: Business, Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
417
On SlideShare
0
From Embeds
0
Number of Embeds
33
Actions
Shares
0
Downloads
4
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Can I Be Compliant and Efficient?

  1. 1. Can I be compliant and operationally  efficient at the same time? Tone’ Gibson Program Manager,  Compliance Consulting  Services  Industry Experience: 25 Years Experience with Wolters Kluwer Financial Services: 7 Years Subject Matter Expertise:  • Former President/CEO of a Credit Union • Program/Project Management • Regulatory Compliance • Compliance Consulting • Bank Operations 1 1
  2. 2. Pop Quiz #1 What amount of regulatory information do  you expect to see published by the  regulators within the next 12 months?  Significantly less than today  The same as today  Significantly more than today 2 Survey Results 2% 14% Significantly More 45% Slightly More Significantly Less Slightly Less & Same 39% * Thomson Reuters Cost of Compliance Survey 2012* 3 2
  3. 3. Pop Quiz #2 In an average week, how much of your  Compliance Team’s  time is spent solely tracking  and analyzing regulatory developments?       < 1 hour 1 – 3 hours 4 – 7 hours 7 – 10 hours 10 or > 4 Survey Results 4% 22% < 1 32% Results 15% 1 to 3 4 to 7 7 to 10 > 10 27% *Thomson Reuters Cost of Compliance Survey 2012* 5 3
  4. 4. Pop Quiz #3 In an average week, how much time does  your Compliance Team spend amending  policies and procedures to reflect the latest  regulatory updates?      < 1 hour 1 – 3 hours 4 – 7 hours 7 – 10 hours 10 or > 6 Survey Results 9% 8% 18% < 1 1 to 3 4 to 7 7 to 10 23% >10 42% * Thomson Reuters Cost of Compliance Survey 2012* 7 4
  5. 5. Pop Quiz #4 In an average week, how much time does your  Compliance Team spend creating and  amending reports for the board?      < 1 hours 1 – 3 hours 4 – 7 hours 7 – 10 hours 10 or > 8 Survey Results < 1 9% 8% 1 to 3 27% 4 to 7 7 to 10 21% >10 35% * Thomson Reuters Cost of Compliance Survey 2012* 9 5
  6. 6. Consider the average cost to you  today?  Regulatory Compliance Officers $55K ‐ $93K  Former Bank Examiners – $71K ‐ $120K  Compliance Consultants ‐ $68K ‐ $115K  Operations Managers ‐ $56K ‐ $95K  Senior Managers – $69K ‐ $116K * Simply Hired Salary Builder 2013* 10 I bet you forgot to include…… Front Line Staff  Loan Officers  Member Service Representatives  Tellers Back Office Staff  Data Entry Clerks  Secretaries/Administrative Assistants Subscriptions, Memberships Fees Third Party Vendors 11 6
  7. 7. How can we cut the cost of  compliance? By introducing you to three methodologies we  believe will assist you with reducing the cost of  compliance.    Strategic Development  Process Excellence  Performance Management  12 Strategic Development  When it comes to managing compliance….  Where are you going?  How will you know when you get there?  What is going on around you? It is not the plan that is important, it’s the planning. Dr. Grameme Edwards 13 7
  8. 8. Where do you start?  Establish core team(s)  Perform Risk Ranking  Critical   Important   Relevant   Define strategic goals/objectives  Outline compliance Inputs/Outputs  Identify “time suckers” 14 Bridge the gap! Map your program management processes to  your strategic plan  Remove duplications  Apply standardization  Seek opportunities to automate     Risk Assessment  Policies, procedures and controls Complaint management Board and staff training 15 8
  9. 9. Process Excellence  16 What is needed?  Standard Operating Procedures       Process Maps Process Owners Process Controls Process Variation  Process Metrics Training/Communication 17 9
  10. 10. Process Maps ‘Visualize’ the  Process  18 Process Owners  Owns the business process long term  Is named as the individual   Responsibility for the long term health and  continuous improvement   Process owners can change over time 19 10
  11. 11. Process Controls Is a state where processes are predictable and  repeatable and capable of producing quality  Inputs control the outputs      New/Enhanced Regulatory Guidance Customer Complaints/Feedback Industry Standards/Best Practices Competitors 20 What About Process Variation? Describes how we view process predictability  and repeatability 11
  12. 12. Process Metrics  Clear and concise  What are we tracking and why?  Track goal(s), benchmark(s) and progress   Where are we today AND where do we want to  be?  Visualize process performance  Take everyone on the journey with you 22 Training/Communication  Standardized  Effective  Recurring  Communicates accountability  Tracked/Monitored 23 12
  13. 13. 24 Why is it important?  Performance management allows for the  opportunity to ensure that goals are  consistently being met in an effective and  efficient manner.  25 13
  14. 14. What is Performance  Management? Performance management is the systematic  process of monitoring the results of activities  and collecting and analyzing performance  information to track progress toward planning  results.  26 Report Cards!!! 27 14
  15. 15. What should you measure?  People  How are they performing?   Processes  How efficient are they?  Procedures  How effective are they?  Technology  Up‐to‐date? 28 How can you measure  performance?  Metrics/Dashboards  Surveys (internal/external)  Team evaluations   Training and continuous improvement  29 15
  16. 16. Benefits  Improved management control  Motivated Workforce  Visibility to the goals/performance  Direct Financial Gain  Preparedness for upcoming exams  Displays data relationships  Provides well documented and  communicated process documentation 30 How to tie it all together?  Plan Repair Track Progress Prepare Strategic Plan Correct Do Apply Risk Rating Monitor Check Validate  processes Act Implementation 31 16
  17. 17. 32 Thank you! Wolters Kluwer Financial Services is the  NAFCU Services Preferred Partner for  Consumer and Member Business Lending &  Deposit Services. Learn more at  www.nafcu.org/wolterskluwer.  17
  18. 18. Appendix Background Mendo Lake Credit Union is a community development financial  institution that serves more than 17,000 members in the California  communities of Lake and Mendocino counties. Headquartered in the  city of Ukiah, the credit union manages four full‐service branch  locations and has an asset value of approximately $122 million. When Mendo Lake Credit Union began searching for a new vendor to  help manage its deposit account disclosures, the credit union sought  an outsourcing partner who would be a “one‐stop shop.” The credit  union had previously experienced a lot of overlap when using multiple  vendors, so finding a single provider that offered the “whole package”  was an important part of streamlining its operations and reducing  costs. Access to a responsive and knowledgeable customer service  team as well as a comprehensive compliance warranty also topped  Mendo Lake Credit Union’s vendor wish list. 34 Appendix Results As a result of using Wolters Kluwer Financial Services’  Deposit Disclosure Program, the credit union has cut its  printing costs in half, reduced overhead and eliminated  scrap waste. Now, the credit union either uses electronic  documents or prints onsite only what is needed rather than  keeping boxes of preprinted account information brochures  on‐hand and then discarding them every time updates are  needed. Wolters Kluwer Financial Services’ Deposit Disclosure  Program not only enables Mendo Lake Credit Union to  operate more efficiently, but the reduction in resource  output also has significantly reduced MLCU’s carbon  footprint, waste and costs. 35 18
  19. 19. Appendix Best of all, LaBrash knows that the credit union’s  deposit disclosures and account information brochures  are always 100 percent compliant, making her job as a  compliance officer much easier. “It would be impossible for me to stay on top of new  compliance requirements and regulation changes  without the expertise that Wolters Kluwer Financial  Services provides us,” said LaBrash. “They not only  keep me up‐to‐date on all compliance matters, but  their customer service is outstanding. As an  outsourcing partner, I can honestly say that they have  exceeded my expectations and have never left me  wanting something more.” 36 19

×