What an amazing headline out of Ireland:
Some credit unions ‘unwilling to comply with the law’ – Central Bank
http://www.thejournal.ie/ – Friday, May, 2nd, 2014
What impact, if any, does this have on Credit Unions here in the US?
The report states that some credit unions still view risk management as a one-off exercise, done only to fulfill regulatory requirements. Of particular worry, the report says, is the fact that many credit unions have not updated their lending practices.
“It is of considerable concern that some credit unions do not as yet appear to have realistically addressed necessary improvements to their lending practices and credit risk management systems.”
Why? Could it be that legacy systems are too burdensome, expensive and out dated? Could it be that regulation has overwhelmed many institutions? What does this mean for credit unions here in the US?
At G2Link, we don’t believe it’s unwillingness on behalf of credit unions to comply with the law, but simply a lack of tools and technology to stay up with the regulation. We understand their situation and that’s exactly why we developed our risk compliance platform. G2Link is the first social media based trust and reputation software platform for financial institutions. Most organizations, especially banks, want to adhere to all regulations. However, the regulatory burden has become overwhelming and with outdated and expensive credit measurement systems, credit unions and other banks just simply keep up.
Before G2Link, businesses had limited options to understand and measure the trust and reputation of other companies. They relied upon outdated payment history and accounting data from a credit bureau to understand a company’s ability to meet its obligations. Using social media to capture the wisdom of the smart crowd, G2Link is enabling companies to take control of risk management by providing actionable, accurate and inexpensive business performance data.
At G2Link, we’ve spent a great deal of time listening to and understanding the compliance requirements financial institutions are under today. Most recently, G2Link attended the National Association of Credit Union Service Organizations (NACUSO) annual conference last week in Lake Buena Vista, FL. With close to 500 attendees, the overwhelming theme was, “we live in fear that we don’t have enough visibility across our third party vendor relationships.” We believe that it’s hard to discern the health of a dynamic company by “checking” in on them at random time and that companies should be monitored continuously in order to truly understand their performance. G2Link provides an interface for each company that displays their performance over time and a history of key events that are generated by the company, its key relationships or regulatory bodies.
Stop running your compliance department in fear and take control of your risk management at