How Sallie Mae Is Future-Proofing Its Fraud and Compliance Strategies

As technology advances, managing fraud and compliance in finance must keep pace. Financial institutions must upgrade their systems to manage risks and protect operations, as new solutions boost security and ensure compliance.

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Our recent webinar explores strategies for adopting new technologies that future-proof your organization. You'll learn to identify when it's time to switch technology providers and discover best practices for a smoother transition. Joining us is Lindsay Glessner, CAMS, BSA/AML Officer at Sallie Mae, who will share her expertise in managing fraud and compliance.

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Transitioning to a New Fraud and Compliance Platform

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Q: What prompted your decision to switch to a new fraud and compliance platform, and what criteria did you use to assess potential providers?

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Lindsay: We switched to a new platform because we needed centralized technology to support our growth. Traditional financial institutions often work in silos, but with new regulations and the need for fraud and AML teams to collaborate closely, seamless information sharing is essential. Without the right platform, this integration is challenging.

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I worked in fintech and learned a lot about third-party risk management. It's crucial to look past sales pitches and evaluate the risks, benefits, and costs of new technology. Key factors include data security, quick customization, and cost-effectiveness. A no-code, low-code setup was vital for making fast changes without long delays.

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A key factor in our decision was the ability to test the system before committing. This trial lets us use dummy data to ensure it fits our needs. This hands-on experience confirmed the platform was the right choice for us.

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Expert Guidance on Change Management

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Q: What strategies do you recommend for managing change during technology transitions?

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Lindsay: Managing change well means being open and making sure to involve everyone from the start. I like to map out how all the systems will connect so we can find any problems early. It’s important to have clear and honest conversations with both vendors and team members so everyone understands what’s happening. 

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I also think it’s key to give end users a real say in the process—when people feel included and responsible, the transition is much smoother. My main goal is to help everyone understand the changes and feel comfortable using the new system.

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Ensuring a Smooth Transition to Unit21

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Q: How did your team smoothly transition to Unit21 without pausing fraud and risk operations?

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Lindsay: To ensure a smooth transition, I began by diagramming how our current systems would integrate with Unit21. This visual method helped spot potential issues and aided discussions with the vendor for solutions. Detailed documentation of system relationships was also key to avoiding conflicts and keeping the structure streamlined.

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Engaging end users early in the process was another key step. By having Unit21 test the system in a sandbox environment, we gathered valuable feedback to refine the user experience before going live. Continuous testing and retesting were essential to understand the impact of any changes and ensure everything functioned as expected.

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We coordinated the rollout with Unit21 by appointing a project leader and starting with smaller, less critical functions to reduce operational risk. This step-by-step approach allowed us to implement the system gradually, ensuring each part worked well before proceeding. With careful planning, the transition to Unit21 was smooth and effective.

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Lessons in Vendor Evaluation and Risk Management

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Q: What advice do you have for evaluating vendors and managing risk during technology changes?

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Lindsay: Be cautious when selecting a vendor for your organization. I suggest asking straightforward questions and making sure you get clear, honest answers—don’t settle for unclear promises. 

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Always request proper documentation and have your legal team review contracts so everyone’s roles and responsibilities are clear. Setting these expectations helps prevent confusion early and keeps everyone accountable. Taking the time to do this right at the start can prevent bigger problems down the road.

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Enhancing Operational Efficiency with New AML Technology

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Q: What lessons have you learned from past technology transitions, whether at Sallie Mae or elsewhere, that guide how you approach technology shifts today?

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Lindsay: A key lesson I've learned is to thoroughly vet vendors before signing contracts. Ask tough questions and verify their claims. If they promise documentation or controls, ensure they provide it quickly. Delays in delivering documents can be a warning sign.

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Have your legal team review contracts to ensure they protect both parties equally. Clearly outline responsibilities if issues arise to prevent misunderstandings and ensure accountability.

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Don't just take a vendor's word that they can meet your needs. Ask them to show how they'll deliver on promises. Have detailed discussions to understand their capabilities before committing, ensuring they truly meet your requirements.

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Sallie Mae’s Vision for the Future of Compliance and Fraud

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Q: What is your outlook on the future of fraud and compliance, and what should organizations focus on to stay ahead?

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Lindsay: The future of fraud and compliance depends on being adaptable, working together, and always looking for ways to improve. Organizations should invest in flexible solutions that can grow and change as new risks and rules come up. However, technology by itself isn’t enough—it's just as important to build a workplace where new ideas are encouraged and people feel empowered to innovate.

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I encourage teams to work across departments, share information, and collaborate to spot new risks early. When organizations create a culture that values learning and flexibility, they can handle today’s challenges and also prepare for what’s ahead in fighting financial crime. The most successful leaders will be those who support their teams to try new ideas and adapt quickly to change.

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Strengthen Your Fraud and Compliance Strategy

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Evaluating vendors and the advantages of flexible, no-code platforms, just like what Sallie Mae did, is crucial for tackling financial crime. These tools help prevent threats like fraud and money laundering by providing solutions tailored to specific risk profiles and national goals. Using these technologies can quickly and effectively meet the evolving challenges in the financial sector.

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Check out our webinar, "Out with the Old, In with the Wow: Strategic Approaches to Future-Proofing Fraud and Compliance," for more insights. Stay tuned for updates and chances to connect with industry peers.