Authors: Michael Versace, Marc DeCastro, Jeanne Capachin

Business Strategy
August, 2012  -  Doc # FIN236550
Number of Pages: 13
Number of Figures: 1

This IDC Financial Insights report examines the current state between banks and vendors and provides guidance on how to best handle your vendor management process.

The relationship between banks and fintech vendors recently has been under increased pressure. "The sales cycle to sell to banks continues to increase as banks trim costs — this has coincided with intense pressure among vendors to bring in more business as financing has become more scarce," says Marc DeCastro, research director for Consumer Banking, IDC Financial Insights." In a consolidating market, both on the banks' end and on the fintech vendors' end, managing the relationship takes on significant importance." In addition, regulatory requirements and stepped-up enterprise risk management policies that are being enforced have caused the need to spend more time getting to know your vendors — especially those marked as critical. It is important for banks that require positive ratings in their examinations to have a formalized and well-documented vendor management program in place with the approval and buy-in from senior management as well as the board of directors.

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