Manage or be managed: Take ownership of your core vendor relationship

With increasing frequency, we are encountering financial institutions that no longer have a productive relationship with a technology vendor, primarily their core vendor. As this relationship falters, many FI leaders consider converting to a new vendor, which is neither easy nor inexpensive.

But remaining in a dysfunctional relationship is very disruptive and can prevent a financial institution from achieving its goals, which is significantly more costly. The importance of a productive FI-vendor relationship has never been greater.

Improving the effectiveness of a core vendor’s ability to service a financial institution sometimes will feel like pushing a rope but there are steps that banks can implement to enhance the relationship as much as possible – by taking control and actively managing their vendor.

Put business first

Never forget that, while there is a personal aspect, working with your core vendor is a business relationship that is ultimately governed by the contract between the vendor and the FI. And you need to understand that agreement fully. It is your owner’s manual on how to conduct business with your vendor.

 

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