Have you seen the commercial where one person comes up with a solution and is standing outside of the box? The others that are in the box think about getting out but they are too afraid too. I laugh every time, and I think it is because this is such a common theme.
Innovators run from the box! When faced with an issue, they hit it head on and don’t focus on “this is how we have always done it”. Instead they focus on “this is how we need to do it”.
Think about the regulatory environment and how it has changed for all of us. Yet I still hear people justifying the way that they prepare their company by saying things inside the box!
Here are some “in the box” examples:
“Well if the regulators use that tool, shouldn’t I use it too?”
Out of the Box Answer: Absolutely not, unless there is nothing better to use. That’s their tool, get your own and make it bigger and stronger! If you use the same tools, they can out-data your data. Not to mention that fact that those techniques have not served one lender well. Think about that for a moment. Not even the large lenders with the battalion of attorneys could fight the battle. Why? Outdated techniques and using what the regulators use.
“We have so much going on right now I can’t look at anything new”
Out of the Box Answer: No doubt, everyone has a lot going on right now. Do you think that stops our largest lenders from adopting better defenses? Not at all, I guess that is why they continue to grow and turn a higher profit. Efficiency = Profits…..Repeat over and over.
“We’re waiting on the CFPB exam to see what we need to do”
Out of the Box Answer: Okay folks, that is downright scary! What kind of a defense is that? If you have not been through an exam, talk to someone who has. They will tell you that the better you are prepared, the faster the regulators will leave. I like to think of it like houseguests. After a few days it gets a little old.
If you find yourself or your management team thinking “inside the box” jump out now! You’ll find there are a lot of great things happening out here, and you might be surprised at how much easier life becomes.