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Can big data improve companies' attention to compliance issues?

Rachel Wheeler Archive

Banks are looking to do more with big data to improve the way they deliver service to their most valued customers. An increased level of attention to analytics can help them strengthen financial planning and provide services through a variety of channels, including phone, web, social media chat and mobile app.

The most challenging aspect of banking customer service is the matter of compliance. Especially with regard to managing money, consumers and their banks are forced to abide by countless federal, state and local regulations. When financial institutions use data to improve the customer experience, they can't neglect the compliance angle.

According to Banktech, the Consumer Financial Protection Bureau (CFPB) is a major obstacle for banks in their efforts to use more data. Dave Hoffman, a partner at PricewaterhouseCoopers' banking technology and operations group, says that customers want transparency and understanding from their financial institutions, and strengthening compliance is one aspect of improving the customer experience.

"Complaint management brings together compliance and customer experience," Hoffman told the news source. "With CFPB regulations, there's now a reason for customer service people to sit down with the compliance staff and look at customer feedback."

Compliance is a messy issue because regulations vary so wildly across different states and municipalities. Companies can only improve in this area if they pay very close attention to detail. Hoffman advises that banks take in as much customer feedback data as possible to analyze the situation.

"Leading banks are bringing together integrated customer complaint teams from customer service and compliance," he said. "This governance model can help drive improvements in compliance and also help refine analysis of feedback for better customer experience."

Compliance issues are one reason why data quality is so important to the banking industry. Today's institutions strive to treat every customer with the individual attention that he or she deserves, and accurate information is essential for that reason.