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Bank Vendor Management

Ncontracts is the leader in vendor management solutions for banks and financial institutions. Our comprehensive web-based solution optimizes contract data and enables banks to dramatically reduce compliance costs and decrease vendor expenses. With Ncontracts, banks benefit by leveraging our experienced team of legal, financial and technology experts who consult and help them manage critical vendors holistically.

Over 300 FI clients trust Ncontracts to help them with:



Regulatory compliance & bank vendor management

Bank vendor management is a hot button issue for banks in the face of regulatory pressure. Regulations are constantly changing, and regulation enforcement continues to increase in its intensity and frequency. There are three primary reasons why banks have a heightened interest in bank vendor management:

  • Reliance on third parties by banks;
  • Greater regulatory scrutiny on data privacy and security; and
  • Increasing number of highly publicized data breaches.

Regulatory compliance raises the importance of bank vendor management from a department-level process to a true enterprise-wide concern since members of the board of directors and senior management can be held personally liable for non-compliance situations.

FDIC vendor management liability language

According to the FDIC statement dated June 6, 2008, the board of directors and senior management are ultimately responsible for identifying and controlling the risks associated with vendors:
“An institution’s board of directors and senior management are ultimately responsible for managing activities conducted through third-party relationships, and identifying and controlling the risks arising from such relationships, to the same extent as if the activity were handled within the institution.”   FDIC-FIL-44-2008


OCC vendor management liability language

According to the OCC Guidance from October 30, 2013, the board of directors and senior management are responsible for managing third party relationships:
“The bank’s board of directors (or a board committee) and senior management are responsible for overseeing the bank’s overall risk management processes. The board, senior management, and employees within the lines of businesses who manage the third-party relationships have distinct but interrelated responsibilities to ensure that the relationships and activities are managed effectively and commensurate with their level of risk and complexity, particularly for relationships that involve critical activities…  …The OCC expects bank management to engage in a robust analytical process to identify, measure, monitor, and control the risks associated with third-party relationships and to avoid excessive risk taking that may threaten a bank’s safety and soundness. A bank’s failure to have an effective third-party risk management process that is commensurate with the level of risk, complexity of third-party relationships, and organizational structure of the bank may be an unsafe and unsound banking practice.” OCC Bulletin 2013-29

Federal Reserve vendor management liabilty language

According to the Federal Reserve Guidance on Managing Outsourcing Risk from December 5, 2013, the board of directors and senior management are responsible for service providers:
“The use of service providers does not relive a financial institution’s board of directors and senior management of their responsibility to ensure that outsourced activities are conducted in a safe-and-sound manner and in compliance with applicable laws and regulations… …Senior management is responsible for ensuring that board approved policies for the use of service providers are appropriately executed.  This includes overseeing the development and implementation of an appropriate risk management and reporting framework that includes elements described in this guidance.  Senior management is also responsible for regularly reporting to the board of directors on adherence to policies governing outsourcing arrangements.” Fed. Reserve SR 13-19;CA 13-21

Software alone is not enough

Would you rather have the vendor working for your bank, or your bank working for the vendor?

It requires full time staff devoting significant time and effort to derive any value from licensed or purchased vendor management software. Qualified personnel are need to gather and input the data for due diligence, complete checklists and answer complex assessment questions. If someone quickly checks boxes or assigns these duties to an untrained employee, then the result is a database of meaningless facts and figures. The reality is that vendor management training requires legal, financial, and information technology knowledge.

Software alone cannot answer:
  • What’s in my vendor agreements?
  • Is my vendor policy up to date with the latest compliance guidelines?
  • Which vendors need to be monitored to maintain regulatory compliance?
  • How do I gather the necessary information on vendors to write a formal review?
  • How do I audit and extract material data out of the mountain of information I’ve gathered?
  • How do I effectively monitor critical vendors in an ongoing basis?

Ncontracts has the answers

Far more than software, the team of vendor management compliance experts at Ncontracts work closely with you to provide the consulting and support service required to confidently answer these questions and help your bank maintain compliance.

Ncontracts enables your bank to respond quickly and confidently to regulatory inquiries and the audit demands of examiners. Our clients have been examined by each agency (OCC, FDIC, FRB and NCUA) of the Federal Financial Institutions Examination Council (FFIEC). Every client utilizing Ncontracts has successfully passed the third party management portion of their exam. Our third party risk management solution delivers information to make sure that compliance is attained. By simply allowing read-only access for the examiner, our web-based tools gives you peace of mind knowing that you are inspection ready at a moment’s notice.

Ncontracts Compliance Guarantee:

Ncontracts tools have been developed by lawyers in consultation with law firms, regulators, and consultants to provide clients with an efficient and effective vendor management process and tools that satisfy all regulatory requirements. In fact, Ncontracts guarantees that the vendor management tools in Ncontracts will always comply with current bank regulatory requirements. Additionally, every financial institution client utilizing Ncontracts has successfully passed the third party risk management portion of their exam.

Take Control with Ncontracts

Effective bank vendor management can yield additional value far beyond reducing risk and satisfying regulatory requirements.  Vendor portfolio management can increase net profits, improve contract terms, reduce costs from audits, and encourage better performance from vendors. Bank clients have realized a positive return on their investment within the first twelve months of utilizing Ncontracts.

Don’t take chances with FFIEC, OCC, Federal Reserve and FDIC compliance. Contact Ncontracts and learn how your organization can use this powerful combination of software and services to manage vendors, mitigate the risks of non-compliance, and reduce costs.

Call us today at 888-552-5658 for additional information or request a personal Ncontracts demonstration.
 
 

Free Ncontracts Demo

We offer several webinars to show how Ncontracts scans, categorizes, organizes, and electronically stores your contracts.

Demo Schedule

Benefits of Ncontracts

Ncontracts helps companies:

  • save time and administrative resources through efficient contract management
  • keep abreast of critical renewal dates and provisions via email notification
  • eliminate accounting errors
  • enforce service level contracts
  • be better informed to negotiate vendor agreement pricing and terms
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