The Bottom Line

Get to the bottom of all things banking with weekly expert musings from SRM. The Bottom Line takes what we hear from financial institutions, fintechs, and industry influencers - separating the news from the noise. We offer unfiltered observations and thoughtful forecasts responding to industry developments and trends as they happen, with emphasis on how financial institutions can better serve their stakeholders.

Expecting Regulation Reform? What it Means for Your Vendor Contracts

Posted by Patrick Goodwin, President on Mar 29, 2017 9:00:00 AM

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In the weeks preceding last November’s US election, bankers spoke of finding ways to apply common-sense tweaks to the edges of onerous regulations like the Dodd-Frank bill. A few short months later, talk has shifted to an outright repeal of the Durbin Amendment, if not of Dodd-Frank itself. We had expected such efforts to gather steam over the next 90-120 days. However, the general pace of reform has been slow, which will likely mean attempts to streamline Dodd-Frank may not begin this soon. 

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Topics: Vendors & Contracts

When is the Right Time to Start Vendor Contract Negotiations

Posted by Russ Bourne on Mar 15, 2017 9:00:00 AM

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The typical financial institution has dozens of contracts in place with numerous vendors that support its operations (both customer-facing and internal). As a result, staying on top of the expiration dates for all of those agreements to maintain an effective renewal process can present a significant challenge. At a minimum, doing so is simply best practice, but in other cases, such due diligence may also be a regulatory requirement or a board mandate. 

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Topics: Vendors & Contracts

Vendor Contract Management: Beware the Perils of Free Money

Posted by Brad Downs on Mar 8, 2017 9:00:00 AM

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For all the banking executives that oversee vendor relationships, see if this scenario seems familiar: A long-time vendor visits your institution and, out of the blue, offers a contract extension along with attractive incentives; e.g., signing bonuses, rebates, pricing discounts, etc. To date, you’ve enjoyed a solid relationship with this partner with no plans to break the contract at expiration, so this provides an opportunity to look like a hero to your institution, bringing in an unexpected windfall to fund other priorities. What could be the downside? 

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Topics: Vendors & Contracts

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