Managing the various aspects of compliance and risk inside the financial services world isn’t an easy task. Without a powerful platform in place to verify identities and avoid high-risk calls, individual staff members and companies as a whole have to put in much more effort to reach the same results. Due to the many legal and compliance needs of the financial services industry, businesses are constantly managing the speed at which they work with the need to both verify the identity of current and potential customers and comply with the many laws relevant to financial services.
A major shift in the environment
The need for digital identity verification has grown along with the popularity of mobile phones. Data from the Pew Research Center shows 64 percent of adults use smartphones specifically, with more using traditional mobile phones that lack some advanced functions. All in all, about 90 percent of U.S. adults have a cellphone. The environment of just a few decades previous, wherein almost all calls between individuals and financial services companies – and all businesses in general – were conducted via home or business land lines, is gone. In its place is a much more complicated arena where many different types of phones are used, numbers change frequently and there are more potential hazards in terms of both risk and compliance.
Whitepages Pro accelerates the ability of staff members to filter incoming calls based on proven metrics, improving overall outcomes. Our software offers the premier solution for verifying the identity of consumers along with in-depth data that helps staff members make better decisions about applications before going through the process of pulling a credit file. The advantages of our identity check platform extend to applications from potential customers. Not only is our best-in-class database useful during initial contacts and follow-ups over the phone, it also aids employees in identifying both honest mistakes and information that may be intentionally fraudulent.
Big changes to compliance in the industry
Just as the environment for contacting consumers has changed greatly in the past few decades, so has the regulatory environment. Steve Culp, Forbes contributor and leader of consulting company Accenture’s global finance and risk services, said a survey conducted by his company found attitudes about the important components of compliance in the financial services sector aren’t keeping pace with current needs. For example, 59 percent of compliance officers responding to the Accenture survey said they don’t believe increased familiarity with and use of technology will be a major part of future operations, despite 76 percent agreeing more money and attention will be paid to compliance efforts in the near future.
Culp recommended compliance staff focus more on data and insight to meet the reality of current and future compliance needs, specifically highlighting the wide range of data sources available in the current market. Using identity data to better manage the risks related to consumer contacts and application filing can be one aspect of a more modern, diverse data strategy.