Most financial institutions review and negotiate complex vendor agreements every five to seven years, using staff and executives who also carry day jobs.
Technology suppliers are constantly negotiating contracts, with teams compensated based on securing the best possible deal for the vendor. This can put the financial institution at a serious negotiating disadvantage from both a knowledge and bandwidth perspective.
Having an Advisor experienced in managing complex vendor decisions, and compensated for negotiating the most favorable outcome for their Client can “level the playing field” for the financial institution.
Financial institutions are under increasing pressure to thoroughly understand and address the risks associated with their key vendor partners. FFIEC examination guidelines mandate a regular review of all key vendor relationships, and failing to do so can make for a difficult and less than stellar examination report. This can be a time consuming and risky process for busy executives.
Having an Advisor with deep knowledge of the vendor review and compliance requirements can reduce risk and free up valuable executive and staff time to focus on growth and profitability.
Evaluating and making complex enterprise wide vendor decisions can be an emotional and contentious process, potentially creating long lasting tensions between the financial institution and the vendor, and even among the FI staff.
Having an Advisor that can help create an objective, data driven evaluation and decision process allows the Client to focus on making a well-informed, objective decision using a transparent process agreed to in advance by the stakeholders.