Since the Consumer Financial Protection Bureau (CFPB) began regulation and enforcement in 2010, 86 percent of financial services professionals have seen an increase in regulatory compliance costs, according to the Aptean Consumer Complaints Compass.
The survey, which polled a mix of C-level financial services executives, risk services directors and compliance officers, was commissioned by Aptean to uncover how financial services companies are addressing CFPB requirements. It also explored their perception of consumer sentiment since the increase in regulations.
In addition to rising regulatory compliance costs, 29 percent of financial services executives surveyed expanded their teams handling complaints significantly in order to properly manage consumer complaints. Furthermore, more than half of financial services executives surveyed have experienced an increase in complexity of complaints.
“As the CFPB continues to shine the spotlight on subpar providers, everyone in the financial services industry is feeling the pressure. There is a direct correlation between increased consumer complaint exposure and rising volumes,” said Matt Keenan, Aptean group vice president of CRM. “Ultimately, those providers who have implemented strategies and technology to better navigate compliance and strengthen relationships with consumers will continue to thrive.”
“It is important for financial institutions of all sizes to begin capitalizing on the lessons learned by organizations currently impacted by the CFPB. Proactively implementing best practices is an opportunity to differentiate themselves from their competition and to improve customer retention and satisfaction,” continued Keenan.
Some of the tactics financial services professionals are implementing to curb complaints include:
• Treating complaint management as a firm-wide exercise in product/service improvement (70 percent have implemented, while 15 percent are considering implementation by year-end)
• Aligning complaint management policies and procedures to the CFPB audit requirements (63 percent have implemented, while 11 percent have considered implementation and have not set a date)
• Leveraging modern technology – like a focused complaint management solution – to better facilitate consumer complaints (56 percent have implemented, while only seven percent are not considering)
To review additional key findings from the Aptean Consumer Complaints Compass, click here.