If you build it, they will regulate it—but should they? That’s a question financial institutions should be asking as agencies like the Consumer Finance Protection Board (CFPB) and Office of the Comptroller of the Currency (OCC) jockey to regulate Fintech firms. On its surface, it may seem like the obvious answer is yes—that regulators should […]
There is such a thing as too little, too late—especially if you’re a bank that made the mistake of failing to oversee a vendor that didn’t deliver billed services to customers.
Keeping your vendor shortlist a secret may seem like a good idea, but protecting it only serves to limit your options as the buyer.
America’s armed forces protect our country—and the financial services industry is supposed to do the same for servicemembers, following laws and regulations to minimize financial worries while they’re busy serving their country. That includes financial institutions’ third-party vendors, as a recent speech by Grovetta Gardineer, the OCC’s senior deputy controller for compliance and community affairs, […]
Service-level agreements can be one of the most effective tools in a financial institution’s vendor management arsenal, but too many institutions make major mistakes when crafting SLAs. Here are the three biggest SLA mistakes and how to prevent them: Letting the vendor pick the measurements. Decide what’s important to your financial institution and set measurable, […]
Think your bank is compliant and following the law? You can’t be sure unless you’re closely monitoring your vendors. That’s a lesson Santander Bank learned the hard way. Earlier this summer the Consumer Financial Protection Bureau (CFPB) slapped the bank with a $10 million fine for illegal overdraft practices—even though not a single one of […]
It’s not every day a vendor sues its customer—especially when that customer is a credit union. But that’s exactly what JMFA is doing in a $460,350 lawsuit against a $91 million California credit union. The reason: The credit union was allegedly “secretly and illegally” using JMFA’s overdraft protection product, according to an article by Peter […]
How necessary is it to document your vendor selection process? If a new law in New York state is any indication, it’s becoming more and more important. The New York Department of Financial Institutions recently published a new BSA/AML rule requiring greater board oversight of risk-based BSA/AML transaction programs. The rule came about after several […]
Vendor management is the process by which an organization’s third and fourth-party vendor contracts, expectations and business dealings are organized within a single system, making it easy to find, report on and edit vendor agreements.
What do the Bangladesh central bank and your third-party vendors have in common? They need to be taking steps to protect themselves and customers from cyber attacks. The threats are real. Earlier this year hackers stole $81 million from Bangladesh’s Federal Reserve Bank of New York account via the Swift international fund-transfer network—with aims of […]