Technology Adoption Starts at the Contract

Financial institutions are increasingly looking outside their core provider for the technology solutions that are right for their bank and their customers. In this video, Aaron Silva of Paladin fs explains the challenges community banks face in working with new providers and how to overcome these issues. He also shares three key areas to watch before signing on the dotted line.

  • Why Banks Should Look Outside the Core
  • Challenges in Working With New Providers
  • Avoiding Contract Mistakes

 

Outsourcing the Service, Not the Oversight


oversight-7-2-19.pngEvery bank director has heard it: You can outsource a service, but you cannot outsource the responsibility.

That sounds clear enough, but how does a board know what its role should be when an opportunity to partner with a financial technology firm, or fintech, arises? The board’s role is oversight and guidance, not day-to-day management. But oversight is not passive. So what does board oversight look like in the evolving world of bank and fintech relationships?

Consider a bank that is reviewing a proposal from a fintech. Management believes that this is a great opportunity for the institution, and presents it to the board for approval. What is the board’s role here? The board’s involvement must be flexible enough that it can react to these situations, but it should also consider some essential inquiries, such as:

Does the proposal match up with the bank’s strategic plan? The board is responsible for the strategic direction of the bank. Directors should consider if the proposal is an appropriate project for the size, resources and initiatives of the bank. They must also think about whether the proposal aligns with the bank’s strategic plan. If the proposal does not match up with the strategic plan, they may also want to consider if it is material enough that the strategic plan should be amended.

What are the risks? The board is responsible for ensuring that an effective risk management program is in place at the bank, which includes the ability to fully assess risks and establish controls and oversight to mitigate those risks. It should assess the fintech proposal through its risk management process

Management should provide the board with a comprehensive risk assessment of the proposed relationship that thoroughly outlines how each identified risk will be mitigated. The board should look at that assessment critically. Was it prepared by competent and experienced personnel? Does it appear to be thorough? Does it focus on IT risks or other narrow issues, or take into account all of the compliance issues? Does it include state laws, which is especially important if the bank is state-chartered? How does the assessment address concerns about privacy and cybersecurity? What does it say about reputation risk?

Is there a negotiated contract that addresses all of the risks? The board is responsible for ensuring that all third-party relationships are documented in negotiated contracts that protect the interests of the bank. The board needs to ensure that appropriate legal counsel is engaged to negotiate the arrangement, depending on the riskiness of a proposed fintech relationship. Counsel should have a thorough understanding of the legal issues involved in the proposed program and the applicable regulatory guidelines for third-party contracts.

The actual contract negotiation should be done by management. However, the board could consider requiring a summary of the important contract provisions or a presentation by management or legal counsel about the terms, depending on the level of risk involved and materiality to the bank.

How will the board know if the program is performing? The board should receive ongoing reports relating to monitoring of the program and the fintech. These reports should be sufficient for the board to establish that the program is compliant with law, operates in accordance with the contract and meets the strategic objectives of the bank. If the program is not performing, the board should know whether appropriate action is underway to either facilitate performance or terminate the program.

A bank’s board cannot outsource its responsibility for outsourced services, even if a fintech partner seems to have a fantastic product. The board must ask enough questions to be certain that management has engaged in appropriate due diligence, identified the risks and determined how to mitigate those risks through the contract and oversight. The implementation of all of those steps is up to management. But one role in particular rests with the board: ensuring that the relationship with the fintech partner furthers the strategic goals of the bank.

How to Save Millions in Vendor Costs Without Changing a Thing


vendor-6-21-19.pngA mutual bank with $1.72 billion in assets managed to save more than $4.4 million in expenses—without changing a single IT supplier or disrupting online customers. Other banks can do it too.

In 2014, BayCoast Bank, in Swansea, Massachusetts, found itself with three suppliers that had three different termination dates. Its core account processing supplier was in the early days of an eight-year agreement but its online retail banking and commercial online services agreements both had about 24 months remaining. The bank, led by President and CEO Nicholas Christ and aided by Chief Information Officer Daniel DeCosta, decided to negotiate against their core IT suppliers and technology vendors in order to save costs. Ultimately, they found a way to save the bank millions and continue servicing customers by leveraging market intelligence and pricing data, with the help of outside expertise.

BayCoast made the same mistake many banks do: signing agreements that are too long and not coterminous with each other. Bank should never lock themselves into contracts that are longer than 60 to 84 months.

To prepare, BayCoast leveraged a business analysis to come up with a new approach to managing these relationships. BayCoast needed to renew its retail and commercial online banking agreements, but market analysis indicated these agreements were over-priced by at least $1.2 million over five years. The contracts had deficiencies, and lacked balancing commercial terms and meaningful service level agreements.

The bank took advantage of a recent acquisition by its core supplier to create a competitive bidding process for these two contracts. The core supplier offered nearly $1 million more in incentives to take over the retail and commercial banking agreements, but the incumbent beat that by offering $2 million to keep the relationship.

The reduction of $2 million from the bank’s cost structure improved BayCoast’s efficiency rate and allowed it to redirect the funds toward other fintech projects and initiatives.

After several years had passed, Baycoast gave itself a 24-month margin before its vendor agreements expired to renegotiate those contracts. This margin allowed executives enough time to get a deal they wanted, or find another supplier.

This time, BayCoast wanted a total change for its commercial online vendor. Their incumbent core and retail online banking suppliers both had competitive offerings, but were under performance probation periods. DeCosta used a third party to interface and negotiate with the suppliers for the core and retail online banking renewals.

The result? Savings of at least another $2.4 million in cost reduction. The bank is putting the finishing touches on its commercial online contract, which could add another $500,000 and push straight-line savings to more than $5 million. This is the equivalent of $151 million in new loans, assuming a net interest margin of 3.3 percent.

By adopting a new approach to negotiating critical vendor relationships and using an outside expert, BayCoast freed up funds that are better deployed. The vendors now have a happy client who is confident they have a market-conforming deal. It’s a win-win for both parties.

Get Smart About Core Contracts



Bank leaders focus on a number of issues when M&A is on their radar—but they shouldn’t overlook the bank’s core contract. Proactively negotiating with the core provider to account for a potential sale or acquisition can make or break a future deal. In this video, Aaron Silva of Paladin fs shares his advice for negotiating these vital contracts so they align with the bank’s strategy.

  • How Core Contracts Derail Deals
  • How to Mitigate Their Impact
  • Why and How to Conduct a Merger Readiness Assessment

Competition for Credit Analysts Creating New Challenge for Banks


analyst-5-3-18.pngSuccessfully recruiting a qualified credit analyst is proving to be quite a challenge in today’s banking environment. There are a number of contributing factors, including compensation compared to other industries, the evaporation of commercial credit training, and a lack of college graduates in certain areas.

With this shortage, credit analysts are highly sought after, and analysts are demanding higher wages than what the banking industry is accustomed to paying.

In the past, it has been common practice for banks to outsource loan review, compliance testing, and internal audit functions — so why not the credit analyst role?

Thin talent pools flow two ways
Historically, banks have hired recent college graduates as credit analysts with the expectation of developing them into commercial lenders and potentially future management. In theory, this practice makes sense. But in today’s market, the success rate of banks converting a credit analyst into a long-term employee seems to be the exception rather than the norm, causing many banks to abandon their commercial training programs.

Over the past decade, many banks have begun hiring seasoned credit analysts who aren’t looking to move to a customer-facing role, making it more difficult to find affordable, permanent analysts.

In recent years, outsourced providers have started meeting the demand for credit analysts. With the increase in compensation for this role, outsourcing may now be the cost-effective option. This is especially true when you factor in the time and effort spent recruiting and training, while accounting for increased efficiency or production from an experienced analyst/outsourced provider.

Banks Still Have Underwriting Control
It is clear many bankers do not want an outside vendor impacting their underwriting decisions. Banks want to make loans to familiar borrowers, and they don’t want the potential for an overly critical or negative analysis from a third party to hinder their ability to do so.

It’s important to understand that your bank will always own and control the underwriting process. The primary focus for outsourced credit analyst services is to provide all the relevant credit information in a consistent format, which will allow the bank to make a well-informed decision. Outsourcing credit analysis should not impact the bank’s underwriting practices.

Banks take pride in their ability to provide quick responses to their borrowers. Outsourcing analyst work doesn’t mean longer turnaround times. If you are considering an outsourced solution, make sure that you establish clear deadlines with your vendor.

You could also consider segmenting the credit analyst work flow between new credit requests and ongoing portfolio monitoring. It may make sense for a bank to analyze new money requests in-house, and then to outsource the less time-sensitive renewal requests and annual reviews.

Training, Retaining Analysts Can Cost You
Even if you are successful in hiring a qualified analyst candidate, the time and resources needed to properly train a new hire with little or no previous credit experience can be quite extensive. Typically, when a bank is large enough to have a pool of credit analysts, there is usually a full-time employee who helps train and develop their skill set. But if you work at a smaller community bank, you might only have one or two analysts on staff.

It is common for a senior analyst, credit officer, or a manager from the credit administration area to oversee a new analyst. But these employees usually maintain a full workload in addition, which may result in inadequate training, or an overstressed manager.

The challenge doesn’t end once you hire and train a new credit analyst. One of the biggest challenges still remains — keeping the analyst in the role. Most banks are lucky if they can keep an analyst in the role for two or three years before the individual leaves for higher pay or a more satisfying analyst role somewhere else. And then it’s time to start the recruiting and training process all over again.

At the end of the day, banks want a viable option to end the what seems like a revolving door of credit analysts. By outsourcing this role, banks have new opportunities to provide cost savings and improve quality for their customers.

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting, investment, or tax advice or opinion provided by CliftonLarsonAllen LLP (CliftonLarsonAllen) to the reader. For more information, visit CLAconnect.com.

Nine Steps for Getting Your Contracts Aligned with Your Acquisition Strategy


acquisition-8-2-17.pngAs banks contemplate future mergers and acquisitions, we are hearing a common question in our vendor contracts practice: “What should I do in my contracts to prepare for an acquisition opportunity?”

The truth is that whether buying or selling, there are many steps bankers can take to prepare for an acquisition, but they need to be taken well in advance. Here are some secrets from behind the curtain.

For banks that are serial acquirers:

1. Perform serious due diligence on the target’s technology contracts and your own.
Review the large technology agreements of the target bank using the 80/20 rule–80 percent of your spending is going to be in a handful of agreements. When you’re done reviewing the target’s contracts, review your own. This will provide a high-level view of your entire vendor relationship. Reviewing the target’s contracts will show your costs to exit their agreements. Looking at the target’s contracts in relation to your own will show opportunities for consolidating vendors and services at reduced rates.

2. Look for opportunities where you can take advantage of your vendor relationships.
If you use one vendor for core processing and you are buying a bank that uses another vendor, your onetime costs for the technology conversion and ongoing expenses will be entirely different than if you are both using the same vendor. Understand your leverage in these situations. If your target is using different systems than you are, an acquisition takes a competitor out of business. If your target is using the same systems as you are, then you are going to be paying for processing the same accounts twice for a period if you don’t negotiate differently.

3. Have pricing established that takes advantage of acquisition volume growth.
As the acquirer, you need to establish pricing that decreases on a per-customer basis as you grow. Negotiating tiers for your major pricing components is a basic requirement. Your goal should be to negotiate tiers that are market priced and are commensurate with the volume that will be loaded on during a five-year term. This could be substantial if you are in an aggressive growth mode.

4. Establish a firm understanding with your vendor about staffing conversions.
Moving quickly during acquisitions is par for the course. Your vendor’s ability to convert your target’s accounts to your system in a timely manner is vital. Best practice would be to negotiate with your vendor in advance for professional services to support your acquisition plan. This could include negotiating for a fixed number of conversions per year along with expectations for how long a conversion will take.

5. Manage your termination costs for acquired technology.
Smart buyers know that a vendor is due a fair share of its committed revenue and reasonable termination costs and no more. Negotiate with your current vendor for language that recognizes when you acquire a bank using their technology, you should only have to pay for any given account once. This can materially reduce your liquidated damages and termination penalties when you buy a bank using your vendor’s technology.

For banks that wish to be acquired:

6. Keep your contract terms to two or three years at most.
It’s never good to have long terms for your technology contracts if you are looking for a buyer. Even suitors using technology that is similar to yours will not want to pay for your commitments.

7. Keep your terms aligned.
I’ve seen a target bank’s contracts with a mix of long and short durations. This can look bad to a potential suitor.

8. Use standard technologies.
Buying a one-off solution or technology to get a competitive edge or save a few dollars is a non-starter if you are looking to sell. Software, services or equipment that can’t be reused or interfaced with the new bank’s core will run up your acquirer’s costs.

9. Negotiate decent pricing and known exit costs.
Keeping your costs in line is very important. Even if your contracts will be superseded by your buyer’s contracts, the liquidated damages to shut down your contracts are directly related to your pricing. If your pricing is three times market pricing, your buyer’s costs to get out of your agreement are going to be three times market. Your costs to de-convert from the system should be plainly laid out along with a clear and fair definition of what your liquidated damages will be.

Growth that comes to your vendors through acquisition increases their market share without the usual upfront costs associated with bringing on business. They want to see you succeed, so work closely with them to make it happen.

Nine Vendor Risk Management Tips for the Board


risk-management-7-19-17.png2017 is already proving to be a very difficult year for bank boards. While being on a board can be a rewarding experience, increasing regulatory pressures certainly don’t make the position and its corresponding responsibilities any easier.

One particular area of intense focus by the regulators is third-party risk management. Ultimately, the regulators have stated that it is your responsibility to ensure that you have a third-party risk program in place that addresses your vendors and the level of risk they pose.

Aside from potential enforcement actions and fines from the regulators, an inadequate third-party risk program can leave your institution ill-prepared or vulnerable to a host of issues. Worsening vendor financial performance could be an indicator of woes to come, such as poor customer service, bugs and issues with its system. Banks that auto-renew vendor contracts could miss a chance to re-negotiate old contracts.

Poor due diligence could mean partnering with a vendor that is damaging to your institution’s reputation. For example, if you don’t understand where customer complaints are coming from and why, regulators could question your ability to properly oversee and monitor your vendor’s performance and manage the corresponding impact on your customers.

While there will always be unforeseen issues you cannot avoid, having an effective third-party risk policy and program in place can ensure your full compliance with the guidance and help steer you to partnerships that will benefit your institution.

And, even when those unforeseen issues do occur, and they will, you’re better prepared to react in an effective and organized manner. To help, here are nine tips to keep you on the right path.

Nine Vendor Risk Management Tips for the Board

1. Read and understand the guidance from your primary regulator as it pertains to third-party risk management. There are key expectations clearly identified in the guidance and they should give you ample fodder for asking your institution’s senior management team pertinent questions.

2. Set expectations and tone from the top. Make sure that from senior management all the way to the front-line customer service representatives, everyone understands his or her responsibilities when it comes to compliance with the rules, as well as how your organization wants to handle vendor-risk management.

3. Have your vendor risk management program thoroughly reviewed for any possible deficiencies and focus on areas that are often overlooked, such as fourth-party risk management or reviewing third parties’ procedures for complaint management.

4. Automate your third-party risk program. Most institutions have already taken the steps away from Excel and other spreadsheet programs in favor of ones that help to manage a complicated network of vendors and regulatory expectations.

5. Involve your internal audit department, compliance team and counsel in evaluating the effectiveness of the vendor management program.

6. Strongly consider making vendor management directly accountable to the board or the most senior risk committee at your institution. Firmly establish its independence from the various lines of business and ensure the needs of vendor management do not fall on deaf ears. Ensure that any issues raised, whether in the course of normal business or during examinations, are promptly and thoroughly addressed.

7. Invite the head of your vendor management program to report regularly at board meetings. A standard set of reports is adequate, but make sure that any concerns or significant issues are clearly called out and reflected in the minutes of the meetings.

8. Ensure those involved in vendor management have adequate resources, such as staffing and a high enough budget, as well as ample training and experience to do the job well. Seek outside independent expertise or outsource tasks where needed, particularly for highly technical items such as business continuity plan reviews for SSAE 18 analysis, attestation standards issued by the American Institute of CPAs.

9. Ask pertinent questions and drill down when anything seems amiss. Use industry news, new regulations and enforcement actions as opportunities to view your own vendor management program through that lens and see if there are areas of concern that should be addressed.

The world of vendor management isn’t easy and your job as a director is incredibly complex and overwhelming at times. Fortunately, done well, vendor risk management can also be a significant strategic advantage, allowing you to do business with well-managed companies in a compliant and cost-efficient manner.

Resources
Venminder Library
CFPB guidance 2016-02
FDIC FIL 44 2008
OCC Bulletin 2013 29
OCC Bulletin 2017 21
FFIEC Appendix J

Fintech Opportunities for Your Bank: A Voyage Into New, But Not Uncharted Waters


strategy-6-9-17.pngFinancial technology, or fintech, is creating a dynamic range of new services and products for banks. Much of the initial discussion about fintech focused on disruption and replacement of traditional banking products and services.

Now, fintech is evolving and is creating new opportunities for banks to expand their products and services, as well as creating various non-interest revenue possibilities through partnering and joint venturing with fintech entities.

Increasingly, fintech entities such as online lenders and payment systems are turning towards partnering and joint venturing with banks for a simple reason they need banks. They need banks because banks can hold federally insured deposits and have the experience and track record of existing and prospering under various federal and state regulatory regimes. However, working with a fintech is not necessarily a voyage into uncharted waters while regulators may adapt with new technologies, banks are comfortable working in the existing banking regulatory ecosystem.

Some existing examples of fintech entities working with banks include:

  • licensing online lending platforms
  • licensing online customer interface platforms
  • using banks as insured depository support for payment systems
  • developing cryptocurrencies
  • developing digital tools that allow banks to mine and harness data for more efficient operations

State and federal regulators are expanding their ever-advancing regulatory agenda to cover fintech’s unique aspects. Indeed, the Office of the Comptroller of the Currency recently announced plans to start issuing Special Purpose National Bank charters to fintech entities, which the state regulators are heavily criticizing. Fintech entities are debating whether they will seek a federal charter in its proposed form.

Nevertheless, if your bank is considering working with a fintech entity, you should consider the following issues:

Strategic Plan: The first, and primary issue that your bank should consider is whether the fintech opportunity fits your bank’s strategic vision and innovation plan. If the opportunity does not, the relationship may not only be not successful, but ultimately detrimental to your bank’s efforts in this area.

Vendor Management: Vendor management is an especially critical area because most banks will choose to work with a fintech entity that owns, develops and services the technology. The key for banks in this area is know their fintech partner and understand the deal. Fintech partners can range from early-stage start-ups to mature entities. Many of these fintech entities have little bank regulatory experience and may be learning as they develop and deploy their products without the legacy regulatory experience. They may also propose contract terms that expose banks to unnecessary risks. The challenge for banks is to conduct thorough due diligence on their fintech partner and understand the agreement.

Cybersecurity: Because essentially all fintech-based products and services are online, cybersecurity is a significant consideration. Additionally, most fintech accumulates and evaluates customer data, which is very attractive to cybercriminals. The critical issue for banks is the ability to ensure that their fintech partners are employing best-of-class cybersecurity practices, not simply regulatory compliant cybersecurity, because the cybercriminals are almost always one step ahead of their targets, as well as the regulators. This will also help the bank protect itself in the event of a data breach or an attack.

Data Privacy: If your bank is working with a fintech, banks should ensure that there are provisions to protect your customer’s data so that it is not used or disseminated in a way that violates the law, as well as provide adequate disclosures to your customers about how their data is used.

Consumer Banking Laws and Regulations: If a bank is working with a fintech entity in providing any type of consumer services, federal and state consumer lending laws and regulations will likely apply to that activity. The combination of new technologies and a fintech entity without a great deal of regulatory experience could spell trouble for a bank partner.

Bank Secrecy Act/Know Your Customer/Anti-Money Laundering: BSA/KYC/AML issues remain critically important for regulators and fintech entities working with banks need to be fully versed in them.

Even considering the regulatory and related issues, working with a fintech is not a voyage into uncharted waters. The tide is also changing, and fintech can provide your bank potentially great opportunities to grow and develop as technology evolves and as fintech entities mature in this sector.

How to Become a Data-Driven Bank


data-5-8-17.pngBanks collect lots of data on their customers, but they aren’t always adept at using it to grow their business. Community banks, in particular, are just beginning to realize the power of data analytics and business intelligence.

Client data and the tools to analyze it can transform how banks conduct their commercial lending business. Data-driven banks can leverage analytics to make better informed decisions, streamline operations, and improve customer service.

The following are three steps for boards to consider for successful adoption of better data analytics:

  1. Support investment in systems that organize and centralize data and standardize processes.
  2. Reinforce the systems investment with policy, training and change management initiatives.
  3. Champion the new systems and processes and how they contribute to the bank’s success.

Here are some practical recommendations for a community bank executive who wants to turn data analysis into bottom-line results.

Define the data universe. The data that community banks can use includes company financials, qualitative customer data, and borrower behavioral data, including payment and credit utilization history. Establishing a centralized system that captures this unstructured data consistently is the first step in this process.

Consider a partnership. Effective analytics strategies ensure that short- and long-term goals are aligned with the bank’s current business operations. Partnering with a vendor with the required analytics technology and implementation expertise could help the bank capture the right data and integrate it into their processes.

Data quality is key. The top tactical issues with this approach involve collecting, organizing, and protecting the quality of the data. Maintaining the integrity of analytics requires clean data that is accurate, comprehensive and continually updated. Data quality is key to realizing the value of business intelligence tools.

Communicate early and often. Educating the organization on the value of credit measures, whether back office risk managers or front office sales professionals, will equip all stakeholders with a solid understanding of the new analytic tools and how they support the overall goals of the bank.

Establish Success Metrics. Even data-driven banks should be wary of aligning internal data with external benchmarks and best practices, because the latter may not be applicable to a particular type of business, product focus, marketplace or strategy. Instead, banks can use internal data to define their own benchmarks and measure success against goals and past performance. Assessing actual performance by comparing historical trends to new profitability, default and recovery metrics (including internal ratings) serves as an indicator of improvement. In other words, how would the prior portfolio perform given new tools and measures versus its actual performance?

Leveraging advanced data analytics and business intelligence tools is an investment that, if properly implemented, should pay dividends in the form of higher quality loans, better customer service and increased operational efficiency.

To read the complete white paper, “How to Become a Data-Driven Bank,” click here.

The Three Top Reasons For Vendor Consolidation


vendor-manangement-11-8-16.pngWhy should banks and credit unions consider consolidating their vendor relationships? Here are three top reasons why:

1. Save Time And Money
Banks and credit unions that reduce the number of their vendor partnerships can increase their operational efficiency and productivity. When an institution partners with multiple vendors, typically that means staff has to deal with multiple back-end systems, often accessing each system numerous times a day and struggling to keep abreast of all of the updates for every system. Sometimes, staff is even unnecessarily bogged down with having to deal with duplicative systems from multiple vendors.

Consolidating vendor relationships also can significantly reduce the amount of training for staff as well as for customers. Bank and credit union staff typically has to train customers on how to use vendors’ private-labeled portals, and that can be time-consuming, particularly if a financial institution uses multiple vendors with multiple portals. But if an institution uses the same vendor for multiple solutions that all have the same look and feel and the same technology, then training of both staff and customers is significantly reduced.

When banks and credit unions are able to negotiate fewer contracts, they can conduct less due diligence on potential vendors, as well as get more for their money by reducing the amount of monitoring and reporting required for risk and assessment compliance. On the other hand, having multiple contracts with multiple vendors adds even more burden to staff because they will also have to monitor different contract term dates for renewal, and then they’ll have to determine how one expiring contract could impact solutions from other vendors.

Furthermore, when a bank or credit union uses fewer vendors, the institution has more negotiating power because it frees up more dollars with the remaining vendors. The higher the volume provided to a vendor, the more likely they will offer their best pricing resulting in lower cost.

2. Save On Vendor Due Diligence
Financial institutions are increasingly responsible for keeping up with the third-party vendor management requirements of the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the National Credit Union Administration, the Federal Reserve, and for state-chartered institutions, the requirements of state regulators.

For example, the FDIC’s Guidance for Managing Third-Party Risk (FIL-44-2008), provides four main elements of an effective third-party risk management process: risk assessment, due diligence in selecting a third party, contract structuring and review and oversight. But today, there’s even more heightened scrutiny, as a number of high-profile security breaches of major vendors has caused regulators to make sure that financial institutions are actually taking all the necessary steps spelled out in the regulations, such as the IT handbook of the Federal Financial Institutions Examination Council (FFIEC).

Banks and credit unions can find it very time consuming to conduct the proper due diligence and ongoing monitoring on each vendor. By partnering with a one vendor, financial institutions can significantly reduce their compliance burden.

3. Help Customers
Consolidating vendors can enable banks to greatly elevate the experience for their customers, by providing a single platform that is easy to navigate. Banks may also have access to additional monitoring and reporting of customer activity to help prevent and detect fraud.

Vendor consolidation can provide substantial return on investment by saving time and achieving cost savings, as well as reduce regulatory burdens by providing the right monitoring and reporting to meet compliance requirements. Partnering with a one vendor can not only save time and money and boost return on investment, but also enhance customer loyalty by elevating the user experiences on the platform.