Collection of the Right Data Saves Time, Money and Compliance Issues
E-discovery – the collection, analysis, preparation, review and production of electronically stored information used in a legal proceeding – is an ever-growing challenge and opportunity. This is particular relevant for banks trying to stay in compliance with the ever growing list of collections regulations.
The expansion of data compilation is seemingly out of control. A recent study of in-house lawyers at Fortune 1000 firms by FTI Consulting reveals that 64 percent of those surveyed believe the impact of big data on e-discovery requests will be an overwhelming challenge for the foreseeable future.
The banking industry has obviously become reliant on data as well. More information means higher costs and increased risk because regulatory agencies focus on document collection and transfer. Powerful bank collections software that is ready to retrieve, analyze and review data ensures the integrity of information.
Deploying best of breed collection automation work flows improves debtor records collection.
More Data, More Risk
The big data explosion combined with the increasing occurrence of legal proceedings and regulation presents a bank problem. Rather than spending large amounts of money on e-discovery after the fact, it may make sense to tackle data, storage and regulatory issues at the core. Another challenge stems from uncertainty over what information banks need to preserve and for how long.
The lack of proper data retention plans or implemented policies is important beyond costly and burdensome legal proceedings. It is the result of undefined data retention policies such as in the debt collection area. A unfocused data retention plan leads to needless exposure, costs, and injury to different areas.
Different data types mean different lengths of time that the data actually needs retention. Policy explanation and enforcement are musts. Once a financial institution clearly defines a retention policy it also needs to articulate instructions to archive and eventually maintain various data sets. The policy addresses what to do if regulatory issues are pending.
According to a 2012 Forrester Research study, Benchmarking, decision makers reported big spending plans for their records management programs. Strong RM programs continue to target traditional compliance and information access objectives.
In the past the IT department was responsible for content but often there is usually no group designated to oversee compliance bank policies and procedures. That is why it’s important to put resources and attention into debt collections systems.
Having records organized and preserved makes it easier for legal or compliance review.
Under Your Control
The policies and procedures by which board members retrieve, handle and store the information they receive are critical to the success of the company. The right data control tools can reduce storage spending and improve risk management. It can also become a source of business value as banks leverage the information gained from comprehending their data better.
In addition, security measures are only as good as the technology that supports them. As the amount of data stored continues to accumulate, the storage of old data on outdated computer technologies will only cause more uncertainty and impediments to retrieval. These issues directly relate to increased costs for personnel tasked with troubleshooting the issues and the purchasing of more media. Without the right systems in place, IT personnel feel constantly behind.
In addition to providing the right technology, IBS offers clients with ongoing and dependable training for your staffs. Our Online Self-Guided User Training Modules provides interactive training at no additional cost to support IBS clients, allowing platform users to take the online classes based on their availability.
Improved debt collection data retention ensures regulatory observance through the IT infrastructure.