Consumer protection, which includes making better decisions around client management issues, identifying patterns indicating potential problems and responding promptly to customer complaints, has been evolving over the past 20 years, shaped by events such as the Enron collapse and the crisis in subprime mortgage lending.
Amid all the rules and regulations, banks and other financial institutions must find a way to navigate consumer protection to avoid possibly onerous fines, as well as to maintain their public image and reputation. To help banks with this task, we have identified four key characteristics of successful consumer protection programs:
Gaining leadership buy-in.
Establishing a coordinated process.
Despite the challenges, banks that align themselves with consumer protection trends should create a significant competitive advantage for themselves and their stakeholders.