In today's fast-paced financial landscape, staying compliant with regulatory requirements isn't just a necessity, it's a game-changer. Compliance leads to enhanced trust, operational efficiency, and customer satisfaction; while non-compliance can result in severe penalties, reputational damage, and operational chaos.
In the UK, the Financial Conduct Authority (FCA) fines exceeded £176 million alone last year[1], and the Reserve Bank of New Zealand has continued to highlight that effective regulatory compliance in debt collection can significantly reduce financial risks and improve overall economic stability[2].
As a consultant, I've had the opportunity to witness both the triumphs and challenges that come with navigating regulations. In this blog, I’ll share my experiences and lessons learnt, highlighting the importance of staying compliant and the impact it has on delivering good client and customer outcomes.
The good: proactive compliance and positive outcomes
One of the most rewarding experiences as a consultant is working with organisations that proactively embrace regulatory compliance. These companies understand that it’s not just about avoiding penalties, but about building trust with customers, future-proofing operations, enhancing operational efficiency, improving employee morale, and having a stronger competitive edge in the market.
Example: Consumer Duty
One financial institution proactively implemented changes ahead of the FCA's Consumer Duty deadline. This approach allowed them to address teething issues early on, ensuring a smooth transition. By the time the regulation came into full effect, staff were well-versed in its purpose and application. As a result, the organisation saw a significant reduction in complaints and an improvement in customer satisfaction, with customers feeling more respected and valued.
The bad: struggling with regulatory changes
On the flip side, I've encountered organisations that struggle to keep up with regulatory changes, leading to compliance issues, operational inefficiencies, and poor customer journeys and outcomes. These challenges often stem from outdated or poorly designed systems, which do not allow for flexibility in adapting to changes in a timely manner. This results in constant workarounds both within and outside of their core systems, creating a nightmare for audit, reporting, tracking, and monitoring.
Example: Breathing Space moratorium
One organisation faced significant difficulties when the Breathing Space moratorium was introduced. The regulation, designed to give individuals temporary relief from debt collection, required substantial changes to their collections processes. Without the necessary system updates and expertise, they experienced delays and errors in implementing the new requirements, resulting in customer dissatisfaction and potential regulatory penalties.
Regulatory best practices
From these experiences, as well as many other clients I’ve worked with, here are my key lessons learnt and recommendations around regulatory best practice:
1. Stay informed and be proactive
Keeping up with regulatory changes is essential. Regular training and updates for staff can help ensure everyone is aware of new requirements and how to implement them effectively. (Signing up for our newsletter is a great place to start!)
2. Invest in technology
Modernising collections systems can significantly ease the burden of regulatory compliance. Advanced technologies like AI and automation can help ensure processes are up-to-date and compliant.
3. Engage with experts
Collaborating with industry experts can provide valuable insights and guidance. Consultants with deep knowledge of regulatory requirements, who have implemented them many times, possess a catalogue of pain points and an arsenal of solutions to overcome them. They can also look at optimisation and improving efficiencies, helping organisations navigate changes smoothly and efficiently.
4. Enhance data management
Effective data management is crucial for compliance and operational efficiency. Ensure that your data is accurate, up-to-date, and easily accessible. Implementing robust data management systems can help in tracking and monitoring compliance with regulatory requirements.
5. Foster a culture of compliance
Developing a culture where compliance is a shared responsibility can significantly improve adherence to regulatory requirements. Encourage open communication about compliance issues and provide regular training to keep everyone informed and engaged.
6. Regularly review and update policies
Continuously reviewing and updating your policies and procedures ensures they remain aligned with current regulations and best practices. This helps in maintaining compliance and adapting to any changes in the regulatory landscape.
Navigating regulatory requirements in financial collections and recoveries is a complex yet essential endeavour. By embracing proactive compliance, investing in cutting-edge technology, and collaborating with industry experts, organisations can transform regulatory challenges into powerful opportunities for growth and improvement. The positive impact of these practices is not only rewarding but also vital for achieving long-term success.
Arum can help
We are collections and recoveries practitioners with decades of experience helping firms to remain compliant with all relevant regulations. We can help train and certify teams, upgrade technology systems, improve use of data, and review policies.
Take a look at our helpful resources below or contact us directly to discuss your needs.
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About the author
Hasib Ahmed
Principal Consultant - APAC
Hasib is a specialist in collections and recoveries with over 15 years of experience across various sectors, including retail, banking, and telecommunications. He has worked with clients in the UK and internationally, playing a key role in multimillion-pound transformation projects, including the implementation of telephony platforms and collections systems. His expertise spans the full software development lifecycle, data certification, system migration, process improvement, system design, training, and testing.
[1] 2024 FCA Fines (2024). Accessed 26 March 2025.
[2] Reserve Bank of New Zealand – Purpose of Enforcement (2024). Accessed 26 March 2025. Reserve Bank of New Zealand - New Enforcement Framework completed (2023). Accessed 26 March 2025.