Planning for the future when compliance regulation is constantly changing
In today’s consumer financial services industry, the constantly changing regulatory environment, can make it difficult to plan ahead and know what payment and compliance solutions will be needed to move your business in a positive future direction.
As always, a change in government and government policies can bring uncertainty, and we don’t know how this may affect the agenda of the CFPB, or what changes could be ahead in regards to compliance regulations for the ARM and HealthCare Revenue industries. Decision makers can find themselves unsure of the best path forward for their business.
Today’s challenge for consumer financial services companies is how to remain compliant while keeping spending in check in an environment where the compliance regulations are in a constant state of change. As a business, you must ensure true compliance, eliminating the option to skimp on a compliance program. Failing to respond to regulatory demands could lead to greater oversight, aggressive fines, skyrocketing legal costs, and overwhelming financial penalties, so when researching payment and compliance solutions one needs to consider the adaptability of the product.
The Bikini and Compliance Regulation
Fabric shortages during WWII prompted a mandatory reduction in material used for women’s swimwear. Inventors responded with two new designs, which only used 30 square inches of fabric, well over the 10% material reduction required, and from this problem solving ingenuity, the Bikini was born. The two-piece bathing suit was created to save material, and today is an $8 Billion-dollar industry in the US alone.
So what does the bikini have to do with a changing Regulatory environment?
Much like the business owners in the women’s swimsuit industry back during World War II, today’s consumer financial services businesses need to ask themselves a few questions of the software they are investing in for both their compliance and payment processing needs. Can the software be easily customized to fit changing regulation and payment needs? Is it adaptable? Is it flexible?
While being flexible and customizable, a second major consideration when reviewing payment and compliance solutions should be: does the product remain user friendly and intuitive? You want a product that is easy for your cashiers or call center agents to learn and use, since this saves your business money on staff training and implementation.
One should also think beyond making compliance regulation easy and flexible for your staff. The consumer experience is often forgotten, which can directly impact your profitability. When the sole focus is meeting ever-stringent regulations, oftentimes you can alienate the end user. Collections involve real customers spending their money, and a complicated or disconnected experience leads to more costs chasing the consumer for payments.
You also want a program that is user friendly for your consumers or customers. If they cannot easily move through the payment process, without experiencing frustration or complexity, then they will give up, and that will mean lost revenue for you.
Adaptability, Flexibility, User Friendly
A payment and compliance solution that offers you adaptability, flexibility, and a user friendly experience for both users and consumers will save you money and frustration for the long haul. The women’s swimwear industry adapted to their changing environment of those times. Likewise, businesses today need to look for payment and compliance solutions that are adaptable, flexible, and user friendly.
PDCflow offers payment and compliance tools that are adaptable, flexible and user friendly. For more information, please see www.pdcflow.com or call us at 1-877-732-4814.