Should credit unions outsource their compliance?

first_imgAs the pace of new government regulations continues unabated, an increasing number of credit unions are seeking to outsource their compliance operations to third-party vendors as a means of cutting costs and relieving the burden of immense paperwork and man-hours.However, outsourcing comes in all shapes and forms — depending on the size, needs, strengths, weaknesses and culture of a specific credit union, the institution may outsource part of their compliance duties to an outside firm, while keeping some compliance activities in-house.According to various experts, including compliance officers at credit unions as well as third-party vendors, credit unions of all sizes have outsourced part or all of their compliance requirements. In many cases, CUs simply do not have qualified personnel within their staff to handle the mountain of regulations coming down from Washington, while others have determined that hiring a third-party vendor to handle such work would free the credit union to concentrate on its core competencies.Costs related to compliance do not end with simply the salaries paid to compliance officers. JiJi Bahhur, NAFCU director of regulatory compliance said compliance costs also encompass such items as training of staff and enacting changes and upgrades in technology and compliance infrastructure — and all of these expenses can pile up. continue reading » 7SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img read more

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