Making profits while complying with regulations is an ongoing challenge for credit unions. But the $116 million, Fairlawn, Ohio-based Towpath Credit Union recently discovered new tools that help it address compliance roadblocks while continuing to grow its lending program.
The credit union collaborated with regulatory compliance firm PolicyWorks, which is wholly-owned by the Iowa Credit Union League, Ohio Credit Union League, and California and Nevada Credit Union Leagues. It also began using ComplySight, a web-based compliance management and tracking tool developed by League InfoSight – an initiative developed by several leagues, including PolicyWorks' three owner leagues, to provide useful compliance resources to member credit unions.
PolicyWorks incorporates a management consulting component into ComplySight, making it more powerful for credit unions. The technology, along with PolicyWorks' staff members, reviews documents and files in key areas of risk, allowing Towpath to manage compliance requirements responsibly.
ComplySight's system pushes out regulatory alerts to inform credit unions about new or upcoming credit union compliance requirements. The tool also explains credit union regulations and other requirements in a language that is easy to understand and offers a tracking mechanism for in-process compliance actions.
"The beauty of the system is it allows for an automatic tracking of certain items that need to be accomplished," PolicyWorks Manager of Compliance Solutions Jason Skemp said.
When Towpath set out to build and manage a comprehensive regulatory compliance department, its staff understood the challenges ahead of them.
"I wanted to become the kind of compliance leader who didn't just provide a copy of the regulation to a manager, but rather helped and supported our management team with creating or updating policies and understanding how policies impacted procedures," Towpath Director of Compliance and Risk Management Veronica Cromer said in a case study with PolicyWorks. "I wanted managers to be able to come to me with questions and get answers quickly in everyday language."
Prior to bringing on PolicyWorks, the credit union used spreadsheets to keep track of its compliance management. Today, the credit union uses both the online system and PolicyWorks' regulatory expertise to complete a variety of strategic compliance tasks, including managing ongoing compliance, integrating compliance into product development, reviewing marketing materials, completing critical compliance projects and keeping up with changing regulations.
Skemp explained his firm offers a consultative element of compliance management, as well as training on how to utilize ComplySight.
"We'll request specific document disclosures, notices, policies and procedures," he said. "We'll go through and review those pieces for them and provide our findings and recommendations based upon the key areas of compliance within the tool."
PolicyWorks also works with the credit union on correcting deficiencies.
Read the full story about how technology enables compliance management in the June 29, 2016 print issue of Credit Union Times.
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Roy Urrico
Roy W. Urrico specializes in articles about financial technology and services for Credit Union Times, as well as ghostwriting, copywriting, and case studies. Also: writer/editor of a semi-annual newsletter for Association for Financial Technology since 1997 and history projects funded by the U.S Interior Department, National Park Service and Warren County (N.Y.).
