Maritz Research

™
Maritz Research
Monitoring Compliance with Consumer Protection Regulations
™
CrowsNest™ by Maritz Research provides an assessment of a financial institution’s
regulatory compliance. CrowsNest™ enables an institution to independently determine
how well employees are following internal compliance guidelines while providing a better
understanding of how their customers are responding to these guidelines in practice.
CrowsNest™ identifies and evaluates an institution’s compliance vulnerabilities and,
subsequently, determines actions for addressing deficiencies. Noncompliance directly and
negatively impacts the bottom line, making it imperative every employee follow internal
policies and procedures. In addition to the operational elements, CrowsNest™ evaluates
how well the institution is interpreting and addressing federal regulations pertaining
to product offerings and customer communications from both behavioral and customer
experience perspectives.
Monitoring Regulatory Compliance
Financial institutions failing to comply with today’s strict industry regulatory standards risk
facing great adversity, including legal action, large fines, bad publicity, and severe penalties.
Banks that proactively
monitor their compliance
with federal regulations
through CrowsNest™
will reap the rewards by
avoiding penalties and
negative press while
gaining the confidence
of their customers,
regulators, and key
stakeholders.
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Regulated institutions must be proactive in monitoring their compliance processes in an
effort to ensure every regulation is followed, particularly as the regulations pertain to
consumer services. Maritz Research helps financial services firms monitor and document
processes that have been implemented in response to a much more strict regulatory
environment. Specifically, Maritz Research offers CrowsNest™, a mystery shop and call
solution to:
•
•
Confirm that standard business operating policies are being followed
Proactively monitor compliance with regulations and create reports that can be
provided quickly to internal managers to support coaching, and to regulators to
help demonstrate compliance
•
Reduce the risk of incurring penalties by early detection of any noncompliance
Addressing Regulatory Requirements
Maritz Research’s CrowsNest™ regulatory mystery shop programs focus on assessing compliance with different federal
regulations (CFPB, FRB, OCC) considering:
1.Front-line employee’s (including branch staff, call center staff, mortgage servicing staff, personal wealth relationship
2.Disclosures and other information from various communication sources (including general websites, secure online
managers, etc.) implementation of new processes and procedures tied to regulations
banking sites, direct mail, in-branch materials/collateral, and customer statements)
Regulation
Retail Banking (e.g.
Regulations Z, E, DD)
Shopping Scenario
• Audit of in-person, call-center, or online communication at
•
•
CARD Act
time of an account opening, inquiry, or application
Assessment of information received via email and/or mail
following application or inquiry
Handling of customer service and complaints in-person,
via telephone, or online
• Audit of in-person, call-center, or online communication
•
•
at time of credit card inquiry or application
Assessment of information received via email and/or
mail following application or acquisition of credit card
Handling of customer service and complaints in-person,
via telephone, or online
Mortgage Reform
• Audit of in-person and written communication at time of
home loan inquiry, application, and servicing
• Audit of compliance with origination and underwriting, and
• Verbal disclosure of rates
• Written disclosures provided on request
• Clear communication about rates
• Lack of deceptive or unlawful behavior
• Information about variable rates
• Information about how rates are determined
• Transaction limitations
servicing regulations in-person, online, or via call-center
• Contact information at the bank
change in terms, etc. (whether in person, via online, and
complaints in-person, via telephone, or online)
• Overdraft protection
• Handling of customer service issues to include: billing, payments,
Investor Protections
& Improvements
to Regulations
Securities
Potential Vulnerabilities
• Assessment (in-person or via telephone) of broker
• EFTs possibilities and limitations
compliance with rules enacted by SEC
• Information about fees
Solution Details
•
Program implementation and monitoring could be ongoing, with daily access to data via online reporting portal and
monthly or quarterly executive summary reports
•
Clients have the ability to customize the scope of the mystery shop interactions based on how their organization
translates the regulations into processes and procedures impacting customers’ experiences
•
Ability to focus mystery shop interaction on potential trouble areas (e.g., noncompliant or high-volume locations)
Maritz Research develops new compliance assessment
solutions as new regulations are enacted.
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One Example: Compliance with Regulation Z
Maritz Research created a mystery shop solution for a retail bank that combined two
separate mystery shop events to monitor branch-level compliance with Regulation Z.
(This included general websites, secure online banking sites, direct mail, and statements.)
1. A Telephone Mystery Shop
The shopper calls the target branch and, using multiple “scenarios,” requests additional
information be mailed to their home.
2. An In-Branch Mystery Shop
The shopper visits the same branch and, using one of the provided “scenarios,” requests
additional information. While there, the shopper also retrieves a business card for target
branch address verification. In both shop events, photos of the appropriate documentation
are captured and submitted (as part of the overall shop results).
The shopper visits the
same branch and, using
one of the provided
“scenarios,” requests
additional information.
Results Delivered Online
Completed and quality-checked shop results are made available through a web-reporting
solution. The web solution provides the opportunity to quickly identify problem branches
and verify the accuracy of findings (by reviewing shop photos) prior to addressing with
the branch.
The Value
Monitoring compliance with federal regulations allows the bank to address noncompliance
issues quickly and ensure proper procedures and customer handling practices are in place to
instill customer confidence.
In Summary
This compliance mystery shop program remains a critical element in our client’s retail
banking process, ensuring conformance with extensive banking regulation changes.
The results provided our client with:
•
A supplementary evaluation of compliance related to specific regulations
•
A third-party assessment of strengths and vulnerabilities related to compliance
•
Hot-alert system to identify locations that have certain levels of compliance
•
Dynamic online reporting system to report results by location, various levels of the
organization, by situation, and expected behaviors
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Business Intelligence
The best mechanism for quickly and effectively distributing results from the compliance mystery shop program is through an
online reporting system. This includes insights delivered in the form of executive summary reports. Maritz Research provides
online reporting systems for many mystery shop programs. Below are a few screenshots of existing sites.
Benefits of Maritz’ online reporting include:
•
Timely access to mystery shop results
•
Quick identification of noncompliance issues
•
View performance across multiple channels or regulations
•
Insights via executive summary level reporting
•
Access to industry experts to help interpret and recommend
•
Ability to share results with large groups. Personalized results
can be provided to various levels of the bank’s organization (e.g.,
individual branch, call center, or regional managers)
•
Capacity to view trends over time
Dashboard with Key Results
Location-level Scorecard
Individual Shop Results
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About Our Offerings
Maritz Research leverages the expertise and resources of our Financial Services Research
Group to offer mystery shopping solutions specifically targeted to explore our clients’
regulatory compliance.
As a unit of one of the world’s largest marketing research firms, the Maritz Research
financial services marketing research team delivers the knowledge of over 150 dedicated
industry experts who work with over 50 of the world’s largest financial services firms. The
depth and breadth of our expertise is unparalleled. Annually, Maritz Research contacts
more than seven million people on behalf of our financial services clients. CrowsNest™ is
a product of Maritz Research’s expertise in the financial services industry, coupled with our
knowledge of regulatory policy requirements and our experience to navigate through the
dynamic compliance environment.
Subject Matter Expertise
•
Financial services sector-focus with extensive experience in retail banking,
•
Annually conduct over 300,000 shops/audits
•
Currently conduct regulation compliance mystery shopping programs
•
40+ years of experience in senior legal advice, federal bank, and multi-national
mortgage, credit card, insurance, and investment services
Maritz Research is a
leader in the mystery
shopping industry.
payment enterprise regulations
Mystery Shopping Discipline
•
A leader in the mystery shopping industry
•
Charter member of Mystery Shopping Providers Association
•
Dedicated mystery shop project, field, and IT resources
•
U.S. coverage with over 90,000 shoppers
•
Conduct in-person, telephone, and online mystery shops/audits
Quality-Focused Operations
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ISO 20252 Certified
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Project teams comprised of financial services, regulatory and compliance, research,
•
and mystery shop subject matter experts
Proprietary IT system (Virtuoso® – V2) and web-based reporting system which
provides easy-to-use reports for our clients
™
• Proactively monitor regulatory compliance with regulations and
internal guidelines
• Provide insights into customers’ interactions with and understanding
of products, terms, and processes
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• Provide reports to demonstrate compliance to regulators
• Identify opportunities to address vulnerabilities through
employee coaching
• R
educe risk of incurring penalties through early detection
of noncompliance
• Address remediation and consent orders concerns
About Maritz Research
Maritz Research is a leading provider of strategic and tactical solutions to successful
organizations worldwide. We’ve consulted with blue-chip companies for nearly 40 years.
Our elite marketing science team and subject matter experts develop and use leading-edge
research methods and advanced decision analytics to provide practical, actionable thought
leadership targeted at the financial services industry. Based on our expertise in financial
services, and detailed understanding of your company and customers, we deliver advice
you can put into action. To ensure your success, we offer comprehensive research and
performance measurement services.
Contact Information
For more information, please contact your Maritz Research Account Manager
or contact us by phone at: (877) 4 MARITZ or email at: CrowsNest@maritz.com
www.maritzresearch.com/crowsnest
RESEARCH
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