In a bid to facilitate an enhanced level of compliance management, lenders are deploying improved predictive dialer platforms in addition to using new and optimized technology. Compliance management is increasing in significance as state and federal laws become more stringent. The Dodd-Frank Act introduced a number of new legal requirements, which in turn changed federal preemption and expanded states' lawmaking and enforcement authority. This has resulted in financial institutions stepping up their efforts to better manage compliance while keeping up with civil actions initiated by state Attorneys General.
In a statement, Alvaro Sandoval, director at Auriemma Consulting Group said, "As with any form of technology, some offer better solutions than others. Lenders should look for the vendors that best fit their business needs and strategic initiatives, while providing a comprehensive package of products, services, and support. Implementing the proper technology can help ensure compliance and mitigate potential fines while reducing costs."
As compliance regulations get stricter, a number of technology companies have started focusing on providing improved dialer-related solutions, in addition to add-on software and other enhancements. Using optimized reporting and filtering tools, as well as customized campaign structures in real time, lenders today are better able to address compliance regulations. The enhanced dialer technologies of today offer greater control and flexibility, ensure improved compliance, and help lower risk and exposure.
Alvaro Sandoval said, "Many predictive dialer technology companies offer scaled-down or baseline versions of their software. This may help lenders purchase new dialer technologies, while mitigating many of the costs associated with launching new dialer platforms. Various add-ons and upgrades can be implemented over time as business needs dictate and budgeting allows."
Lenders are leveraging predictive dialer systems as they make outbound calls on a daily basis. Any kind of noncompliance will invite fines, which can be anything from a few hundred to several thousands of dollars for a single violation. With improved dialer functionality, lenders achieve better compliance; however, they are also proactively deploying tools such as interactive voice response (IVR) and integrated ACH payment processing to optimize automation among other business operations.
Edited by Blaise McNamee