Why it Pays to Work with Experts for (Credit Data) Compliance

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For lenders, financial institutions, and fintechs, compliance is always top-of-mind – with good reason. Willful violations of the Fair Credit Reporting Act (FCRA) can cost you $100 to $1,000 in statutory damages per consumer violation. Those costs can add up. In addition to fines, fees, and penalties, organizations face severe reputational damage for non-compliance or breaches of any kind.

One glance at the compliance section on any credit bureau’s website offers insight into the sheer magnitude of regulatory requirements organizations must be aware of: FCRA, CCPA, The list goes on. Managing compliance requirements along with operational and business demands can be a tall order.

Balancing Operational & Business Needs

The business of credit data access and furnishment is complex. The goal is to minimize delinquencies and increase on-time payments while managing credit risk and providing a top-tier customer experience. In the current economic climate, increased scrutiny on the balance sheet and improving profitability means having the right data on-hand invaluable.

Business units must collaborate with IT, or experienced fintech partners, to translate data into meaningful information that can help the organization meet its business goals. Rapidly evolving technology and an increasing number of new entrants to the market have led to increased pressure to provide data faster and leverage enhanced analytics to make better business decisions.

For organizations that have Chief Data Officers (CDOs) or similar roles meant to bridge the gap between data and decision-making, compliance can eat up precious time that may be better spent adding business value. An Experian report noted that nearly half (45%) of CDOs think their roles should extend beyond compliance. And yet most CDOs reported that risk management and compliance take up a significant chunk (43%) of their time.

From a technology perspective, developers face time-intensive MISMO, fixed format, and proprietary XML parsing when it comes to credit data access from the bureaus. Then there is the matter of determining which attributes matter most.

Business leaders and IT teams have their hands full to meet business and operational objectives. Compliance adds a layer of complexity to all of it. Without – and even with – dedicated compliance resources, balancing the needs of the business with regulatory requirements stretches available resources thin and adds risk to the entire operation.

The Expert Touch Enhances Opportunities for Growth

Working with partners like Bloom Credit can simplify operations significantly. In addition to relieving the burden on both business and IT teams, on-demand access to compliance experts can put your mind at ease.

Think of us as the connective tissue that helps you go to market fast with industry-leading credit products without running afoul of regulators. Our team of industry veterans has a deep understanding of regulatory compliance mandates so you can focus on the business of credit and lending.

Not only can we aid with the implementation of our credit access and furnishment API, but we act as an extension of your team to ensure you remain compliant every step of the way. We’ll offer guidance and best practices on everything compliance-related so you can focus on growing the business.

For more information about how Bloom can help you with credit data access and furnishment, reach out today.


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