Convoke Streamlines Audit of Credit Reporting Data

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The Problem

A US bank had to perform lengthy manual audits on customer data that collection agencies were loading into Chex Systems, the national system of consumer reporting for checking and savings accounts.

The Solution

Collection agencies began loading their Chex data directly into Convoke. With automatic export built into Convoke, the bank was able to realize huge cost and time savings in its oversight of customer data integrity.

Understanding the Issues

As part of its internal oversight process, a major US bank was conducting laborious reviews of account closures that their collection agencies had reported to Chex Systems. Under the old process, the bank needed to audit at least 10% of all such closures on a monthly basis to ensure data integrity. This required the bank to pull the data from Chex and manually audit between 500 and 1,000 accounts a month, a process that could take a dozen employees approximately a week to complete.

Given the difficulty of verifying the data, they were spending too much time auditing, rather than diverting money and human capital to more pressing projects.

In the long-term, the bank expects to substantially eliminate time spent on audits.

Creating Improvements That Last

Once the bank had moved its systems to Convoke, collection agencies were able to load their consumer data directly onto the Convoke site rather than to Chex. That data is now accessible in Convoke, which automatically exports it to the bank for review. When the bank completes the review, it can then report the consumer information directly to Chex. This new process enables the bank to analyze its information systematically, saving many hours of time and effort. Moreover, it also decreases the need for internal audits, since the bank now has full visibility of account closure data in a single place. This reduces audit time and costs by 75%.

Without the ability to centralize and consolidate data, ensuring its integrity is a complex and lengthy process. This creates inefficiencies, like the ones this customer experienced, which become detrimental to other projects that require resources from a team with limited bandwidth.

Now that customer data is consolidated in a central location, not only is the time needed to audit greatly reduced, the bank expects it to be substantially eliminated over the long term.

- David Pauken, CEO of Convoke

As regulatory requirements for vendor oversight and consumer treatment increase, financial institutions need to find ways to consolidate customer data for quick and easy review. By using Convoke’s platform, this bank was able to ensure that the data going to consumer reporting agencies was complete and accurate, giving them confidence that they were meeting internal and regulatory compliance rules.