More and more community banks are looking to technology to help optimize operations. However, it’s important to talk to your banking law attorney about regulations and risks associated with new technologies. This can help you decide on the technologies you will and will not implement for your bank. Also, your attorney can help offer advice for implementing technologies in your institution.
Talk to Your Banking Law Attorney About Digitization
Today’s consumers expect digital and automated solutions for almost everything, including banking. Therefore, your community bank may be considering using technological advances to help your customers. For example, customer service chat abilities are a common offering for many financial institutions. This feature may help make customer service faster and more convenient for your customers.
However, it’s vital to discuss new banking technologies with your banking law attorney. This can help you perform a thorough risk assessment of the new feature you would like to use in your organization. It’s important to have a strategy around how you will protect consumer privacy and customer data. For example, you may need to have a plan for not only preventing cyberattacks, but also what to do should a hacker successfully get a hold of data.
Banking Compliance and Adopting New Technologies
Also, your banking law attorney can offer insights into any regulatory issues you may face. Even for some of the more basic financial institution technologies that you can think of, there are still important steps you must take to remain compliant with banking regulations. Let’s stick with the customer chat function as an example. Your chat representatives still need to protect consumer privacy during chat sessions. Therefore, you will need to have policies in place on what banking questions your reps can and can’t answer via chat.
For instance, will your institution answer the same questions it can over the phone? Or, in order to help prevent privacy concerns and data breaches, will you direct customers to a different communication channel for questions about balances and other specific information?
Another important part of implementing chat for your bank includes ensuring your representatives understand and use identity verification procedures according to your institution’s policies. These may or may not have to change compared to those your representatives use on the phone. Your banking law attorney can help you determine a course of action for your institution by advising on compliance issues. We work with you to assess and mitigate risks and compliance issues.
At G. Ortega Law, we provide legal advice for community banks. Your banking and business lawyer offers practical guidance to help you optimize your organization and improve operations. We also offer outsourced general counsel for institutions that require on-demand counsel based on their needs and budget.