How to Create an Agile and Automated Compliance Management Program

In the credit and collections industry, compliance management is a critical part of successful business operations. But emerging on the other side of a global pandemic only to be faced with dynamic changes to the regulatory landscape, organizations face yet another uphill battle.


Creating agile operations may be the answer to streamlining compliance while increasing productivity and growing business capacity with a more flexible, remote workforce. First, let’s review some of the biggest influences driving the need for more agility in compliance management:


A global pandemic

This goes without saying, but the pandemic has thrown curveball after curveball at the collections industry. From lockdown orders to shifting towards a remote workforce to the sheer number of changing regulations across multiple states, 2021 has already been a rough year for collections companies.


New rulings and regulations 

In an already tumultuous year, the consumer financial protection bureau (CFPB) has released new regulations regarding electronic communications with consumers. While the regulations specify the guardrails for some communication procedures, other critical regulations are awaited in December. Most of all, since the rules don’t have to be noted in the Federal Register for at least another year, there could be many more significant shifts in the coming months.


Moreover, the recent Hunstein decision has left many debt collection agencies and loan servicers spooked as to their compliance status. The outsource collection activities these companies often outsource to third party vendors could now come under additional heat by the fair debt collection practices act (FDCPA).


In the US, our new administration will likely have a heavy influence the course of additional policy changes and the enforcement of these rules.


How to create agile and compliant collection practices

With so much ambiguity in the air, is it even possible for the collections industry to ground itself in sound compliance management programs? Creating a more agile business environment is a strategic shift many organizations are choosing to implement in today’s rapidly changing landscape.


Here are three key ways to ensure your collections business is agile: 

  1. Stay on top of your compliance game. The compliance rulebook keeps changing, making it difficult to monitor and keep up with new standards. Fostering an agile business model includes not only tracking not only the policy changes in real-time but also ensuring your staff is re-trained as needed. Can you easily visualize and document who on your staff has been re-certified and who has not? If you’re slacking on empowering your workforce, it’s critical more than ever to emphasize re-training in order to demonstrate compliance. 
  1. Track performance in real time. Are you tracking performance metrics across different workflows? Do you have both, a high-level outlook and a detailed understanding of different areas of your business? To gain more transparency into your operations and make informed decisions on the fly, working with a unified technology platform makes all the difference.
  1. Digitize, Digitize, Digitize. From managing your remote workforce to overseeing client audis online, one thing that is certain right now is that we will all operate in a digital future. Taking a digital-first approach now will not only help ensure you’re compliant, but will set you up to pivot faster down the road.

If you want to learn more, I recently presented this topic on Mike Gibb’s ARM Shark Tank. To watch the recording on-demand, you can do that here.


If you’re already looking for a flexible technology platform that can help you achieve and maintain compliance while giving you insight into your operations, check out Provana’s compliance management system. And as always, drop me a line with your feedback or any questions (