A strategic partnership to enhance vendor management and optimization
True Digital Group, a provider of the industry’s first digital vendor optimization network that supports financial institutions in their discovery, implementation, and monitoring of technology vendors, today announced a strategic partnership with Ncontracts, the leading provider of integrated vendor, compliance, and risk management solutions to the financial industry. The partnership will provide banks and credit unions with a more robust and comprehensive vendor management and optimization solution.
Through this partnership, True Digital and Ncontracts will collaborate closely on their complementary solutions to enhance the structure and organization of vendor information, benefiting their financial institutions. Banks and credit unions that use Ncontracts will be able to share their data with True Digital in a more seamless fashion, eliminating the need for financial institutions to manually enter vendor or product information. They will also be able to have their existing records cleaned and have their vendor information maintained and updated on a go-forward basis.
Michael Berman, CEO of Ncontracts, said, “Our collaboration with True Digital empowers financial institutions, giving them the ability to easily identify and select the most viable vendors as well as connect with peer institutions. Our Nvendor solution complements the True Digital platform with efficient vendor risk management software, services, and automation that supports every step of the vendor management life cycle to reduce third-party risk. By automating these tasks, banks and credit unions increase efficiencies while uncovering opportunities to reduce internal and external vendor costs.”
A turnkey integration onboarding process for customers
By forming this collaboration with Ncontracts, True Digital can offer a turnkey integration onboarding process for their bank and credit union customers. Further, the alliance creates a more comprehensive ecosystem for vendor management and optimization.
Patrick Sells, Co-founder and CEO of True Digital Group, said, “Ncontracts shares our vision to help banks and credit unions leverage technology more effectively. We are committed to making it easier for institutions to discover and partner with the right technology vendors. By combining our strengths, we can now provide a more comprehensive solution.”
True Digital Group is the provider of the True Digital Platform, a collaborative network designed for banks and credit unions to optimize vendor relationships. The platform enables financial institutions to discover new technology vendors, compare them with peers, monitor their performance, and optimize their contracts. True Digital also offers consulting services to help financial institutions navigate the complex vendor landscape.
Ncontracts is the leading provider of integrated vendor, compliance, and risk management solutions to the financial industry. The company’s cloud-based platform provides a comprehensive suite of tools that automate vendor due diligence, contract management, risk assessment, monitoring, reporting, and auditing. Ncontracts also offers professional services such as regulatory guidance, contract negotiation, and vendor oversight.
A timely partnership amid growing regulatory scrutiny
The partnership between True Digital and Ncontracts comes at a time when financial institutions are facing increased regulatory scrutiny over their vendor relationships. The Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), the Consumer Financial Protection Bureau (CFPB), and other regulators have issued guidance on how banks and credit unions should manage their third-party risk.
According to the FDIC, financial institutions are expected to have an effective third-party risk management process that includes:
- Risk assessment
- Due diligence
- Contract review
- Oversight
- Contingency planning
- Reporting
- Independent review
The OCC also emphasizes that financial institutions should adopt a risk-based approach to vendor management that considers:
- The nature of the relationship
- The level of risk involved
- The potential impact on customers
- The availability of alternatives
- The complexity of the contract
- The degree of control exercised by the institution
The CFPB further warns that financial institutions are responsible for ensuring that their vendors comply with consumer protection laws and regulations. The agency expects financial institutions to:
- Conduct thorough due diligence
- Review vendors’ policies and procedures
- Establish clear expectations and responsibilities
- Monitor vendors’ performance and compliance
- Take prompt action to address any issues or violations
By partnering with True Digital and Ncontracts, financial institutions can streamline their vendor management process and meet the regulatory expectations. They can also gain access to valuable insights and data that can help them optimize their vendor performance and costs.
