Monitoring Compliance with Consumer Protection Regulations. Maritz Research Financial Mystery Shop Services

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1 Monitoring Compliance with Consumer rotection Regulations Maritz Research Financial Mystery Shop Services

2 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. Regulated institutions must be proactive in monitoring their compliance processes in an effort to ensure every regulation is maintained, 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 mystery shop and call solutions to: Confirm that standard business operating policies are being followed roactively 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 detecting any non-compliance early Banks that proactively monitor their compliance with federal regulations through mystery shop programs will reap the rewards by avoiding penalties and negative press while gaining confidence from their customers. 3

3 Solutions to Address Regulatory Requirements Maritz Regulatory Mystery Shop programs focus on assessing compliance with different regulations considering: 1. Front-line employee s (including branch staff, call center staff, and personal wealth relationship managers) implementation of new processes and procedures tied to regulations 2. Disclosures and other information from various communication sources (including general websites, secure online banking sites, direct mail, and statements) Regulation Shopping Scenario CARD Act Mortgage Reform Audit of in-person, call center, or online communication at time of credit card inquiry or application Assessment of information received via and/or mail following application or acquisition of credit card Handling of customer service and complaints in-person, via telephone, or online Audit of in-person and written communication at time of home loan inquiry or application Audit of compliance with origination and underwriting regulations in-person, online, or via call center Handling of customer service and complaints in-person, via telephone, or online Investor rotections & Improvements to Regulations Securities Assessment (in-person or via telephone) of broker compliance with rules enacted by SEC Maritz will continue to provide additional mystery shop solutions as new regulations or amendments are enacted. Solution Details rogram implementation and monitoring is ongoing, with monthly or quarterly reporting Clients have the ability to customize the scope of the mystery shop interactions based on how their organizations translate the regulations into process and procedures impacting customers experiences Ability to focus mystery shop interaction on potential trouble areas (e.g., non-compliant or high volume locations) 4

4 One Example: Compliance with Regulation Z For a national retail bank, Maritz Research created a mystery shop solution combining two separate mystery shop events to monitor branch level compliance with Regulation Z. 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). Results Delivered Online Completed and quality-checked shop results are made available through a web-reporting solution. The web solution gives you 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 to federal regulations will allow the bank to address non-compliance issues quickly and to ensure proper procedures and customer handling practices are in place to instill customer confidence. 5

5 Online Reporting The best mechanism for quickly and effectively distributing results from the compliance mystery shop program is through an online reporting system. Maritz provides online reporting systems for many mystery shop programs. Below are a few screenshots of existing sites. Benefits of Maritz online reporting include: Near real-time access to mystery shop results Ability to look at trends over time at a location level 6 Non-compliance issues are quickly identified Ability to share results with large groups. ersonalized results can be provided to various levels of the bank s organization (e.g., individual branch, call center, or regional managers) Reporting system can include compliance scorecards to be shared with senior executives or compliance managers

6 About Maritz Offering Maritz leverages the expertise and resources of our Financial Services Research Group and Virtual Customer Department to offer mystery shopping solutions specifically targeted to explore our financial services client s regulatory compliance. Subject Matter Expertise Financial Services sector-focus, with extensive experience in mortgage, credit card, and investment services Annually conduct over 300,000 shops/audits Currently conduct regulation compliance mystery shopping programs Mystery Shopping Discipline A leader in the mystery shopping industry Charter member of Mystery Shopping roviders 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 ISO Certified roject teams comprised of financial services, research, and mystery shop subject matter experts roprietary IT system (Virtuoso V2) and web-based reporting system which provides easy-to-use reports for our clients 7

7 For more information, please contact your Maritz Research Account Manager or contact us by phone at: MARITZ or at: