Credit unions have seen dramatic changes in recent years. Increased regulation since the 2008 financial crisis and rapid technological change have added to the growing compliance and competitive pressures facing the credit union industry today.
Jeff Kelly, vice president of governance, risk and compliance for OnCourse Learning Financial Services, discussed some of the key compliance and other challenges facing credit unions in an article published in the March issue of Credit Union Magazine.
“One of the main challenges for credit unions’ regulatory compliance is the speed of technological change, which increases risks for credit unions,” said Kelly in the magazine, a Credit Union National Association publication.
“The changes in payments technology have been dramatic,” he continued. “And since 2008, wave after wave of additional regulations have hit credit unions.”
In the article, Kelly explained that credit unions and other financial institutions sometimes ignore the potential risks they could face from potential litigation or regulatory risk as a result of noncompliance with rules. He noted in the article that it’s important for credit unions to invest in employee training, but often times many smaller to mid-sized credit unions lack the resources or expertise to offer robust compliance training. As a result, he said, many credit unions turn to third-party partners such as OnCourse Learning for compliance and other training.
“Credit unions are required to keep a finger on the pulse of such change and allocate limited resources to deal with them,” Kelly said in the article. “While large credit unions can deal with compliance by themselves, most credit unions can’t. They need to work with a reliable partner.”
To read the full article, click here.