By Silanis - Secure Electronic Delivery of Consumer Disclosures: Legal Considerations for Banks and Credit Unions

Increased regulatory oversight and consumer protection laws have put considerable pressure on banks and financial services organizations. For many, the burden of meeting new regulatory requirements translates into higher processing and operational costs. In fact, a 2013 survey from Deloitte Consulting found that 65 percent of financial institutions reported an increase in the cost of compliance, up from 55 percent in 2010.1 But what if you could turn that burden into an opportunity – an opportunity to actually save money, strengthen compliance and improve customer experience? This paper examines the electronic delivery of disclosures as a way to do just that. 

Rather than reacting to regulatory pressure with additional people, manual controls and process complexity, institutions that automate have the ability to respond faster to changes in regulations; execute customer transactions correctly and consistently across all channels and business lines; and capture a full compliance audit trail. Recognizing that, banks, credit unions and financial services companies of all sizes are bringing customer-facing transactions online and turning to electronic signatures as a key enabling technology. E-Signatures, e-forms and digital processes are being used today for account openings, loan applications, mortgage applications, retail finance contracts and many other financial transactions. Consumer disclosures are at the core of many of these processes.

When delivering disclosures electronically, financial services companies gain the ability to control the process as well as gather comprehensive evidence to prove compliance with laws and regulations. Consumers gain convenience and faster application processing. There are benefits for all involved. However, delivering consumer disclosures online requires special consideration. The key is to ensure all legal requirements are met in a way that provides a great customer experience and drives adoption. This whitepaper takes a pragmatic look at how to do that. We look at the advantages of automating disclosures, how an electronic signature solution can help, and best practices based on the real world experiences of banks, mortgage finance companies, insurance carriers and others. This paper will answer questions like:

· What are the benefits of secure e-disclosure delivery?

· What are the top legal and regulatory considerations?

· What does a well-designed disclosure delivery process look like?