It is a true (and obvious) statement to say that collateral protection practices aim to protect your financial institution from risks related to your outstanding loan collateral. What is also true is that collateral protection practices should aim to protect your consumers from collateral related risks.
Adopting a collateral risk management strategy that keeps your consumers at the forefront will help safeguard your financial institution, while also ensuring you maintain a healthy, happy relationship with your consumers.
If you choose to not take a consumer-centric approach, you risk losing consumers to a growing list of competitors who are hungry for opportunities to steal them away.
Let’s take a look at three key practices that should surely help your institution sustain a well-rounded, consumer-friendly collateral risk management program.
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