Excerpt from Credit Union Times Article, Published on Oct 4, 2024.
Small credit unions, admired for their personalized service and community focus, often face significant hurdles in regulatory compliance. With limited staff and resources, keeping up with regulatory demands can become overwhelming, putting these institutions at risk.
A recent analysis by Inclusiv and ViClarity has highlighted three major compliance challenges small credit unions face: managing member complaints, maintaining audit schedules, and overseeing vendor management. These areas, if not properly handled, can lead to major regulatory concerns.
Handling member complaints has become more complicated, with feedback coming from various channels. Without a centralized complaint management system, responses can be delayed or missed. Implementing a structured complaint process—whether through a shared spreadsheet or an automated platform—can streamline this, helping credit unions stay on top of concerns efficiently.
Maintaining an audit schedule is another tough task for small credit unions. Multiple audits—covering financial, risk, and IT compliance—must be conducted annually. But, with limited staff, it’s easy to fall behind on addressing flagged issues. Proper tracking and documentation of audit findings, either manually or through a software solution, can demonstrate good-faith efforts to regulators.
Vendor management is also critical, especially with the rise of digital banking and fintech partnerships. Credit unions are responsible for ensuring vendors comply with regulations, and failing to do so can lead to serious violations. While manual tracking can work, adopting an automated vendor management system can save time and reduce risk.
By implementing streamlined processes and embracing simple technology, small credit unions can meet these compliance challenges head-on. This not only protects them from regulatory pitfalls but also allows them to focus on delivering the high-touch service that their members expect.
To delve deeper into this topic, please read the full article on Credit Union Times.
