Is your Credit Union ready to stand out from the crowd?

The regulatory requirements Credit Unions now have to undertake has never been as great and Credit Unions are seeing major changes in the way they are run and monitored. Risk and compliance are now words that are used within every conversation and the pressure for Credit Unions of all sizes to assess their risk and demonstrate compliance is increasing. There is no doubt as a Credit Union member these regulations give me greater confidence but for the Risk & Compliance Officers their roles got a whole lot tougher. The Central Bank is looking for named individuals to be accountable for all actions within Credit Unions and there is no room left for error. Some managers/CEO’s have not yet developed a process to meet these regulatory challenges and earlier this year the Central Bank-based registrar said “many credit unions had yet to adequately address weaknesses in policies and controls to meet regulatory standards”. Other Credit Unions have meet the challenge head on and are using appropriate software solutions to display best practice and adhere to all regulatory requirements. The regulatory burden can seem very daunting but it’s really just a matter of agreeing the right process, adopting it into the whole organisation, achieving compliance and then maintaining compliance.

Selecting the ‘right’ solution is the crucial part of the process, it is essential that what you choose fits the scale and nature of your business. As obvious as this sounds, you also need to ensure you select a supplier that understands Credit Unions’ operations and requirements. The software needs to streamline the compliance process, have the ability to manage a large volume of risk controls, track performance, produce reports and provide a full accountability trail. The process and software you choose needs to be easy to use, demonstrate compliance, keep Central Bank inspectors happy and keep members confident.

Turning the regulator burden into an opportunity to display core values and best practice is well within your reach. Many Credit Unions are doing this on a daily basis and reaping the rewards. So get ahead of regulatory requirements and remember there is no straight road to success, it’s a mix of your ability to grow and learn that will ultimately give your Credit Union the competitive advantage.

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