These days, a more compliant company is a more competitive company.
Don’t adjust your screens — you read that right.
In the past, compliance was viewed as a necessary evil. Everyone knew it had to be done, but since it wasn’t seen as growing revenue or customers, the attitude about compliance was limited to how to obey the letter of the law and get on with the real business at hand.
The old view was a one-size-fits-all approach and there were plenty of people that viewed the fuss over being compliant as limiting and restrictive, if not outright harmful to the day-to-day business of the firm.
Responsibility for enforcement of compliance issues was limited to the legal compliance group, but times have changed. Compliance is a now an all-hands-on-deck effort.
Auto finance compliance experts are saying it’s time to advance the thinking about compliance and even embrace it as a step to a more competitive business.
First of all, auto finance companies must face the fact that long standing regulatory bodies have been re-energized after a long period of an enforced reduction in activity. And there’s no denying that nonbank auto lenders have had relatively little supervision at the federal level. But as every auto finance player knows, that all changed with the Consumer Finance Protection Bureau.
But instead of considering compliance as just another expense item, or an added cost of doing business, experts advice looking at it as an investment in the company, a competitive edge, even.
Business improves today when one steers a more compliant auto finance ship. Compliance improves efficiency. Well-designed processes equal less time managing them.
By taking an anticipatory attitude, you could end up spending less time managing a crisis in the future.
By staying focused on your own compliance program, you’ll probably spend less time watching what other people are doing.
There’s also no doubt that a strong compliance program appeals to investors. With strong compliance, investor confidence increases. These days, investors are demanding greater governance and transparency.
By taking steps that show your company embraces a more compliant world, a different mindset can emerge wherein more people will spend time thinking about what’s good for the company and its customers.Like This Post