Compliance: why should we do it, and how will it change our industry for the better?

In the second decade of the 21^st century compliance is the new king. Markets are changing fast across all consumer-facing industries with regulatory forces becoming increasingly influential and customer service expectations rising.

Within the current complex and changing economic environment creditors face a tough challenge balancing the increasing pressures between delivering greater levels of liquidation, reduced cost to collect and a more compliant and customer- centric manner.

Over the last five years I have noticed a shift in how companies manage their compliance agenda as the importance of this has increased to be on a par or, in some cases, even more important than recoveries liquidation.

With the increased media and regulatory scrutiny around debt collection practices and the recognition that it can cost more to acquire a new customer rather than keep an existing one, (even one that pays late or who has hit financial hard times) companies have been forced to react to ensure they are doing more than simply ticking boxes and following best practice guidelines. They now need to base their compliance performance around 'outcome' and ensure that they find the right one for all parties, including the debtor.

So, against this tide of customer-centricity, what knowledge do we need to ensure compliance in everything we do? Do we need specific systems and technology? And is it actually possible for companies to increase collections, reduce costs, be compliant and improve customer experience all at the same time?

These are all key questions facing today’s industry managers and ones which we would be well advised to understand as soon as possible. In this blog series we attempt to answer these questions, and clarify what we all need in this fast-paced and ever-changing world.

By Beth Whelan, Senior Client Relationship Manager, TDX Group