In the short term, it may benefit non-banks to adhere to as few regulations as possible. But is that best in the long run?
By David Lykken
Special to MPA
When I talk to people from mortgage organizations that are non-banks, I often hear the same story when it comes to standards of compliance. Banks may be held to certain standards by regulators but, if they aren't necessarily banks, why should they follow those criteria? What do you think? Should non-banks ignore the standards that are being created specifically for banks? Here's what I think...
In the short term, it may benefit non-banks to adhere to as little regulation as possible. However, in the long run, most standards applying to banks are most likely going to apply to non-banks as well. By cutting to the chase and investing in great compliance measures earlier, you can buffer yourself against those costs that will inevitably arise in the future. To stay one step ahead of the competition, you need to do business like you're already living in the world of tomorrow.
If you want to be a true leader in your industry, and not just a follower, you will act like a bank with your organization. By that I mean that you will adhere to the same rigorous standards that are set for banks. You will have the foresight to make the adjustments now that most companies will wait until the last minute to make.
That's what leadership is -- taking care of business before it's even necessary. The same standards to which banks are held are coming to non-banks as well. Beat those standards to the punch, and prepare your organization now. The future will thank you.
