Presented to:
NetFinance
Solving Compliance Challenges Across Digital Channels
ABOUT R2I
ABOUT R2I
GOALS
Financial institutions are driven by a core set of business goals. Compliance and regulatory laws can stand in the way of achieving those goals.
Compliance and Regulations• SOX• RESPA• “Do not call”• “Can Spam”• GLB Act• PCI-DSS• Equal Credit Opportunity• Home Mortgage Disclosure
Business Goals• Acquire new clients• Upsell existing clients• Keep existing clients• Nurture relationships• Expand product offerings• Reach new markets• Increase operational
efficiencies
Situation Overview
GOALS
Homeowners need mortgages and originators are paid on commission to provide mortgages, yet regulations and compliance present several challenges:
Challenges home buyers face:
• Compliance impacts to getting a mortgage
Challenges lenders face:
• Mortgage fines
• Settlements
• RESPA violations
Situation Overview
In early December 2013, 6 of
the leading financial institutions
agreed to pay $23.3 billion in
mortgage settlements.
Source: Forbes, December 11, 2013
Wall Street banks and foreign rivals
paid out more than $100 billion
in U.S. legal settlements since the
financial crisis.
Source: Financial Times, March 25, 2014
GOALS
Compliance regulations are here to stay and will become more restrictive.
How do we address the opportunities created by these guidelines?
• How other industries handle managing customers, content, marketing and
technology
• How financial institutions handle it
Why Can’t This Be Easy?
GOALS
GOALS
How Financial Institutions Address The Opportunity
GOALS
No single source of data
• Increased operational costs
• Missed opportunities to connect with potential
clients
• Heavy overhead for new business initiatives
• No attributions or digital profile connected
to opportunities
Why Can’t This Be Easy?
GOALS
EXAMPLE SCENARIO
Scotts Company:• Mortgage provider
• Has 3,000 national branches
• Has a website to provide
reach outside of his brick
and mortar branches
• Has a fully staffed call center
for potential customer
inquiries
• Needs to reduce operational
cost
• Wants to employ a national
marketing campaign to
increase revenues
Opportunities:• Drive online applications –
cheaper and more efficient
then local branches
• Reduce calls into call
center by providing online
touch points
• Reach new markets by
taking advantage of social
campaigns to provide
“word
of mouth” referrals to his
bank
• Provide a personalized
online experience for
various customer
segments
SCOTT, CEO
Compliance and Regulations have traditionally slowed these
opportunities
Get Better, Faster, Stronger…
COMPLIANCE ISSUES
More online applications result in:
• Less operational costs than traditional phone/mail applications
• More revenue from greater reach
Compliance issues:
• Regulations vary from state to state—identify geographic limitations
• Challenged to verify applicant identity without identification
• Responsibility for fraud
• Managing rule and regulation updates and quickly updating traffic drivers
Driving Online Applications
COMPLIANCE ISSUES
Streamline the process:
• Create a single master profile for
each applicant
• Attach regulations to a master record
• E-identify applicants / users
• Push regulation changes to all
channels from a single repository
Driving Online Applications
COMPLIANCE ISSUES
Streamline the process:
• Add more self-service options reduces operational costs
• Digital communications reduces risk
Compliance issues:
• Accurately automating a process with hundreds of variables
• Adjusting to change with a documentation trail
• Managing rule and regulation updates and quickly updating traffic drivers
Don’t eliminate call centers:
• Reduce operational costs through personalization
• Access the master profile for every touch point
• Create online touch points to eliminate call center traffic
• Allow call center to serve as point of reassurance
Reduction in Call Center Costs
47% of financial institutions state
that their call centers help
increase market penetration; 72%
state they expected it to do so
Source: Call Centers in Financial Services: Strategies, Technologies, and Operations, NYU / University of California - Berkeley
COMPLIANCE ISSUES
• Financial transactions are trust-based
• More word of mouth referrals drives more leads and in turn more revenue
Compliance issues:
• Breach of personal information
• Need content to spread socially but need control over content
• Fear of interpretation
Embrace technology
• Social networks, email, display advertising, thought leadership content
• Compliance can integrate with technology and content so long as risk is not
introduced
• Leverage content repository with an editorial calendar to broaden outreach in
approved process
Reduction New Markets
COMPLIANCE ISSUES
• Personalizing products online reduces need for branch visits
• Better personalization improves conversion rates and drives revenue
Compliance issues:
• Delivering personalization within privacy law policies
• Creating customer segmentation borders on unfair lending practice laws
• Managing inappropriate segmentation
Embrace technology and analytics:
• Use analytics tied to customer profile
• Create online segmentation based on analytics
• Use single content repository to reach customer segments
Personalization
COMPLIANCE ISSUES
• Reacting quickly to constant changes in rules and regulations
• Identifying the audience without breaching privacy or unfair lending laws
• Recognizing that documentation means accountability
• Maintaining a personalized level of customer service without a direct personal
interaction
Stop it. Your industry is behind. Be aware of concerns—
don’t let them hold you back.
What Are My Main Concerns?
Digital = Complicated
Compliance = Complicated
Digital + Compliance = High
Individual Risk
Do it right.. And stay compliant
• Create a single repository for content
• Streamline delivery of content to all channels
• Update content with single action and cross-channel distribution
THE BIG IDEA
The Big Idea: Digital Asset Management
All of your customer’s data is publically available to you—use it.
THE BIG IDEA
The Big Idea: Master Customer Profile
Use a marketing program that can tie your customer data together to create a personalized online experience.
THE BIG IDEA
The Big Idea: Master Customer Profile
Tie it together…
Delivering a truly custom experience requires in-depth knowledge of each potential borrower’s online and offline behaviors. What does that mean?
What we know:• Rachel is a first time visitor to the
site
• Rachel spent 2.5 minutes on the
site and visited 3 pages
• Rachel is interested in purchasing
her first home
• Rachel was referred to the site via
a Google search
What we don’t know:• Why did Rachel leave the site?
• Is Rachel ready to buy or just researching her options?
• What are her purchasing habits?
• What are Rachel’s interests?
• How much does Rachel know about the home buying
process?
• Is Rachel financially qualified for home ownership?
• What other mortgage sites has Rachel visited?
• Is Rachel active on social media?
• Has she contacted any mortgage providers by phone?
• What types of mortgage related information is she
researching?
• Is Rachel primarily a mobile or desktop user?
• What 3rd party resources does she engage with?
MANAGING CUSTOMER EXPERIENCES
Optimization: Creating Customized Experiences for Borrowers
RACHEL JONES
Identify each potential borrower’s digital footprint and use data to create an optimal experience across all channels.
This won’t break privacy laws
What we know:• Rachel is a first time visitor to the site• Rachel spent 2.5 minutes on the site and
visited 3 pages• Rachel is interested in purchasing her first
home• Rachel was referred to the site via a
Google search• Rachel is an active user of Facebook and
YouTube• Rachel has researched loan options with
Wells Fargo, Quicken Loans and Bank of
America• Rachel is married to Adam and the couple
is expecting their first child• Rachel is interested in purchasing a single
family home in Baltimore County within the
next six months• Rachel primarily uses her mobile phone to
conduct online searches• Rachel and Adam identify as having a
“good” credit rating
This might break privacy laws
What we don’t’ know:• Has Rachel completed a mortgage
application with Wells Fargo, Quicken
Loans and Bank of America?• Rachel’s household income?
MANAGING CUSTOMER EXPERIENCES
Optimization: Creating Customized Experiences for Borrowers
RACHEL JONES
Buying your first home?
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Purchasing your first home? Learn everything you need to know about the process and what to expect
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Value of pre-qualification for first-time home buyers
Dear Rachel,
Congratulations on beginning your journey to first time home ownership! We specialize in providing loans. We’ve been in the industry a long time and we’re here to help guide you through the process. We have a variety of tools and resources available to help you determine how much you can afford, compare loan options and rates and calculate your monthly payment.
Calculator Pre-qualify Survey
Toolkit
Logo
Rate table.
MANAGING CUSTOMER EXPERIENCES
Optimization: Creating Customized Experiences for Customers
Take what we can and use and personalize for Rachel.
Rate & Loan Calculator
But what about compliance?
COMPLIANCE ISSUES
• Reacting quickly to constant changes in
rules and regulations
• Identifying the audience without
breaching privacy or unfair lending laws
• Recognizing that documentation means
accountability
• Maintaining a personalized level of
customer service without a direct
personal interaction
• Digital + Compliance = High Individual
Risk
• Deploy a Digital Asset Management System
• Use open and available data
• Use offline analytics in an online program
• Develop a master customer profile
• Digital + Compliance = High Individual
Reward
What Are My Main Concerns And How Do I Solve For Them?
Q&A
Nick ChristySVP Enterprise TechnologyR2integrated-Digital Marketing & Technology
[P] 410-369-3777 | [M] [email protected] | www.r2integrated.comLocations in: Baltimore • Seattle • Boston
Twitter: @NickChristy | Skype: NickChristyhttp://www.linkedin.com/pub/nick-christy/3/ab4/759
