Those Leagues that have sufficient compliance staff to offer compliance audit services still use the “boots on the ground” approach. This approach involves one or more League staff members visiting your credit union on a periodic basis, usually once each year or every two years to conduct the audit or review.
Depending on your proximity to the League headquarters this will likely involve some travel expense reimbursement in addition to the cost of the audit. The League will conduct the review and then prepare a written report that includes a list of findings and observations, which can often become a lengthy to-do list for the credit union staff.
There are several deficiencies in this approach that the AffirmX solution was designed to address.
- By leveraging cloud technology, AffirmX is able to conduct 95% of the process remotely, which significantly reduce the cost for comprehensive compliance reviews;
- AffirmX’s platform includes a proprietary algorithm that identifies those areas of operation within the credit union that are likely to pose the highest compliance risk. This risk rating determines the priority, frequency and the volume of the documents that are reviewed. This makes the entire process much more efficient and beneficial to the credit union;
- The AffirmX Compliance Solution is conducted over the course of a year so that it is easier for overburdened credit union staff members to respond to requests for documents and to address any compliance issues; and
- By conducting the compliance review on a continuous cycle, AffirmX can quickly review any steps the credit union has taken to address a compliance concern or taken to address a regulatory change. No need to wait another year for the auditors to return.