The Bottom Line

One Term, Many Meanings: Understanding Your Vendor Contracts

Posted by Cody Harrell on Dec 6, 2017 9:00:00 AM

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It’s no secret that our industry is littered with acronyms and jargon Most of the time it is used as a type of helpful shorthand. Even so, an outsider overhearing a conversation incorporating some of this “industry speak” might believe those of us in financial services speak an entirely different language. The truth is sometimes those of us in the industry struggle to translate the latest term or buzz word correctly. 

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Topics: Vendor Contracts

Core Conversions: Are Financial Institutions in Denial or Pursuing New Approaches

Posted by Michael Carter on Aug 18, 2017 12:00:00 PM

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Much has been written about the “stickiness” of consumer payment apps and their value in cementing bank and credit union relationships with customers and members, but behind the scenes at most financial institutions (FIs) there is a far stickier relationship.  In this relationship, the bank or credit union is the customer and the cement composed of those mission critical services provided by their core processing vendor.

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Topics: Vendor Contract Management, Vendor Contracts, strategic sourcing

Regulations Are a Fact Of Life: Don’t Let Vendor Contract Management Create More Expenses

Posted by Patrick Goodwin, President on Aug 2, 2017 11:30:00 AM

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The spiraling cost of complying with an ever increasing regulatory burden is possibly the greatest challenge facing US banks and credit unions – it’s not an exaggeration to label it an existential threat for some institutions. However, this threat can be mitigated by utilizing expertise available from compliance and strategic sourcing firms as well as via software automation. It won’t make the regulations go away, but it makes the process more efficient and helps make it less likely that something is overlooked.

Download, Beware of Greeks Bearing Gifts

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Topics: Vendor Contract Management, Vendor Contracts, strategic sourcing, Vendor contract

Proceed with Caution on Vendor Contract Changes – A Real World Example

Posted by Ben Mrva on Jul 17, 2017 9:00:00 AM

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In recent posts, we have offered words of caution concerning the perils of free money when considering a proposal, contract or addendum from a vendor. As part of our work, we are continuously monitoring the market to remain current on the trends that impact our clients. Lately, we have seen a real-time case study playing out in the market that reinforces why every proposed vendor contract amendment should be reviewed carefully.

Download, Beware of Greeks Bearing Gifts

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Topics: Vendor Contracts, strategic sourcing, Vendor contract

On the Acquisition Trail? Don’t Overlook Your Vendor Contracts

Posted by Brad Downs on May 10, 2017 9:00:00 AM

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Acquisition continues to be a preferred strategy for financial institutions (FIs) seeking to gain economies of scale while also expanding service offerings and reach. Choosing the correct merger candidate usually centers on factors like strategic fit, market footprint and business integration. There is another less exciting but important factor to consider during these talks: vendor contracts which can cause costly, tactical headaches if not identified early in the process.  However, if the contracts are assessed early enough in the acquisition process, an institution can reap benefits greater than expected through due diligence process.

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Topics: Vendor Contracts

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: Vendor Contracts