You'd be hard-pressed to find a credit union marketer orcompliance officer not overwhelmed by the nuances of today'sadvertising regulations. With every regulation, product and channelcomes a new set of rules. Complicating matters is the emergence ofnew marketing methods and technologies rule makers haven't evencontemplated.

Much of the innovation the marketing industry is experiencing isborne of the desire to use data to offer the right consumers theright product at the right time. The big data revolution, combinedwith a more audible consumer voice, is driving marketers in manyindustries to take a closer look at tools that help identify these“right” individuals. Credit union marketers, though, must becautious when implementing these tactics. Although the spirit oftheir aspirations may be good natured, the compliance implicationsthey could generate may be damaging.

Take fair lending, for example. Multiple enforcement actionshave changed the way credit unions have to think about fair lendingcompliance. The CFPB uses complex algorithms to determine afinancial consumer's race and ethnicity. Complying with theagency's unwritten standard is already challenging; add in emergingmarketing techniques, and it becomes extremely difficult.

Consider geofencing. Marketers use this technology to create avirtual fence around certain locations. When consumers enter thatarea, they receive messages, alerts, discounts, perks or otherinformation to their mobile devices. Compliance-minded creditunions will understand the potential a practice like this couldhave for violating fair lending and other requirements. Yet, noguidance specific to the use of geofencing exists today.

Big data strategies, too, present possible trouble spots. Themost sophisticated analytics in the world is nothing withoutaccurate, and in some cases, real-time information. To addressthis, more credit unions are taking a look at how they gather,warehouse and transfer what can be highly private and personalnuggets of information throughout their organizations. As creditunions design their data acquisition plans, data security andprivacy has to be a part of the conversation. However,cybersecurity regulations are only just beginning to enter thescene. Although the Federal Financial Institutions ExaminationCouncil has released a new tool to help credit unions betterevaluate their cybersecurity preparedness, on-the-books regulationsare not yet in place.

Teeny tiny screens create another compliance challenge. Asmarketers develop campaigns for delivery on smartphones and smartwatches, not to mention Internet of Things objects, disclosures area potential trouble spot. It's no secret rules and regulations havenot kept up with quickly changing marketing delivery methods. So,marketers and others are left to apply sometimes decades-oldguidance to cutting-edge technology. It's sort of like trying tofit the proverbial square peg into a round hole. For example, weare all too familiar with the “clear and conspicuous” standard thatmany regulations require for disclosures. But, what does that meanwithin the confines of digital channels? In many cases, the answerremains to be seen.

First-adopter credit unions with staff members who find value inenvelope-pushing products and marketing technologies are often leftto interpret what compliance looks like. That's because regulatorssimply have not yet contemplated how these emerging systems andmethods will impact consumers.

Compliance and innovation can work hand in hand. Marketers,product managers, compliance officers and other leaders need tofirst understand the spirit of consumer protection laws. They canthen work together to demonstrate (in writing!) that the spirit, aswell as any related rules, regulations, laws or guidance, wasconsidered as the plan was developed and executed.

Cindy Williams is vice president of regulatory compliancefor PolicyWorks. She can be reached at 515-221-1850or [email protected].