Haddon Savings Bank Moves To One Compliance Vendor To Increase Efficiencies And Tackle Increasing Regulatory Burdens
Financial Services: Community Bank
Haddon Savings Bank is a dynamic full-service hometown financial institution serving residents in Camden, Burlington and Gloucester counties, New Jersey.
Haddon Savings Bank engaged RKL Risk Management to assist with internal audit and compliance services.
Regulatory burdens in the industry were increasing, and the need for a seasoned service provider with deep industry experience became apparent to Haddon Savings Bank. Previously, their internal audit function was being handled by a sole practitioner who was not up-to-speed on the latest regulatory requirements. Haddon felt that they needed to bring in a trusted advisor who was known in the industry for efficiency, experience and keeping up with the latest breaking regulatory requirements.
For compliance, Haddon had employed two different vendors. They were pulling reports and documentation twice instead of once – burning resources and time. Since Haddon was pleased with the relationship built with RKL Risk Management and the efficiencies they created within the internal audit function, they decided the firm was the obvious one-vendor choice.
Haddon chose RKL Risk Management as their sole vendor for internal audit and compliance. The scope of work included an internal audit risk assessment, a risk-based audit plan considering lending, treasury and investments, deposit and branch operations, finance and accounting and Haddon’s compliance program.
In addition, the audit plan included information technology (IT) areas such as IT strategy and planning, outsourced vendor management, business continuity planning, IT infrastructure, information security, governance, system development and support and critical applications.
The RKL Risk Management team was present at board meetings and compliance meetings, offering recommendations from regulatory bodies and knowledge from their work at other community banks. They were an extension of the Haddon team who delivered increased efficiencies and industry best practices at a time of heightened regulatory scrutiny.
Once Haddon hired RKL Risk Management to integrate their internal audit and compliance reviews, they gained a consolidated approach to establishing adequate internal controls that included regulatory compliance requirements. This approach not only decreased the overall cost of individual internal audit and compliance reviews, but it also increased the efficiency and productivity of Haddon’s staff. Since internal audit — including IT requirements and compliance — could now be reviewed simultaneously instead of in two separate reviews, the Haddon staff could turn their focus back to performing their customer-facing daily job responsibilities. Haddon’s staff also benefitted from training provided by RKL Risk Management to ensure the ongoing effectiveness and accuracy of regulatory compliance initiatives.