NEW YORK, Sept. 30, 2013 (GLOBE NEWSWIRE) -- Lenders are optimizing their predictive dialer platforms, leveraging new and improved technology to assist with compliance management – a crucial function amid increased state and federal legislative activity.
New legal requirements were brought on in part by the Dodd-Frank Act, which made significant changes to federal preemption and expanded states' lawmaking and enforcement authority. The frequency of new consumer protections in states such as Massachusetts, California, Texas, and West Virginia has placed a heavy burden on financial institutions in managing compliance and keeping up with civil actions brought by state Attorneys General.
Changes in the regulatory landscape have spurred technology companies, which provide dialer-related solutions, to offer new products, enhancements, and add-on software. Improved reporting and filtering tools, as well as the ability to modify campaign structure in real time have allowed lenders to more capably maintain compliance. New technology has directly impacted the role of dialer administrators, who are typically responsible for developing campaigns and strategies. These new and enhanced dialer technologies provide more control and flexibility, helping administrators ensure compliance with prevailing laws and acts, test accuracy, and reduce risk and exposure.
"As with any form of technology, some offer better solutions than others," says Alvaro Sandoval, Director at Auriemma Consulting Group. "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."
With lenders using their predictive dialer systems to make thousands of outbound calls on a daily basis, noncompliance can lead to fines that range from several hundred to several thousand dollars per violation.
Compliance is not the only function benefitting from improved dialer functionality: lenders have implemented a range of tools, including interactive voice response (IVR) and integrated ACH payment processing, to improve automation and streamline key business functions. Enhanced monitoring and reporting solutions have improved agent productivity and performance. Operating costs have also seen reductions due to tools such as workforce management (WFM), automated decisioning, and quality management software.
Although advances have been made, many lenders still lag in dialer-related technology and face new challenges as they struggle to meet ever changing regulatory requirements. Allocating manual resources provides a temporary solution, while lenders consider enhancing existing platforms. However, this could increase operational costs and the potential for human error, further exposing the lenders to risk.
"Many predictive dialer technology companies offer scaled-down or baseline versions of their software," Sandoval says. "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."
When looking for new dialer technology, speaking with various vendors can help tailor a product that suits the lender's immediate needs, while considering the long-term goals. This may be an alternative to a more costly temporary solution that may not have the ability to grow with the business and keep up with the ever changing regulatory environment.
About Auriemma Consulting Group
Since 1984, ACG has offered comprehensive management consulting, research, Industry Roundtable, and benchmarking services to the financial services industry. ACG consultants are experienced practitioners, drawn from the credit card, private label, auto finance, mortgage, and retail banking industries that we serve. ACG clients include credit card issuers and networks, commercial banks, auto and mortgage lenders, merchants, and industry vendors. With offices in New York and London, ACG offers actionable solutions to help clients make important business decisions to maximize their efficiencies and revenues. For more information, contact Al Sandoval at 212-323-7000 or al.sandoval@acg.net.