Banking Vendor Selection and Management

Helping Banks Choose and Manage Vendors Successfully

Understanding and optimizing the approach to vendor selection and management has recently become a more critical priority for banks. Regulators are elevating the focus on managing third-party risk, while at the same time continued economic pressures dictate vigilance in optimizing vendor contracts to drive cost out and improve relationships.

System Selection

The process of selecting a vendor for principal initiatives such as major systems replacement has far-reaching implications and requires a comprehensive, strategic approach. Crowe Horwath LLP understands these challenges and the complexity of managing within the ecosystem of applications and vendors within a financial institution. Our proven approach to vendor selection focuses on finding a vendor that best fits the business needs of the institution.

According to a study by CFO Research Services and Crowe Horwath LLP, nearly 75 percent of responding banks reported they have experienced some type of harm from the action or inaction of a third-party vendor.

Vendor Expense Benchmarking

Crowe offers a service to carefully review and benchmark third-party contracts, which can reap cost savings and strengthen vendor relationships. We employ a pay-for-performance model that enables payment for the cost mitigation services based on verified savings.We provide timely and consistent monitoring and evaluation of performance across 24 critical areas of bank spending. By establishing a centralized repository of vendor governance tools, along with clearly defined vendor performance standards and objective cost and performance benchmarks, Crowe can help you lay the foundation for a strong vendor management program.

Third-Party Risks

In addition to helping banks manage the costs of vendor relationships, Crowe offers a comprehensive approach to the management of all third-party risks, including risks stemming from vendor relationships. Drawing on decades of experience with financial institutions, Crowe helps banks develop greater visibility into the full range of associated risks, including monetary, regulatory compliance, intellectual property, business continuity, reputational, customer satisfaction, and confidentiality risks.

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