VendorInsight®’s EVP Jay Fitzhugh was recently quoted in a story published by the ICBA’s Independent Banker Magazine. The story, titled Automating Oversight, explored how a vendor management software system could benefit community banks.
The author begins by acknowledging the limited resources and growing regulatory pressure that many community banks are facing—the same challenges that we hear from our own customers and prospects. Specifically, we’ve identified two common obstacles that many community banks struggle with when it comes to vendor management:
1. You feel like your Vendor Risk Management policy is being criticized by regulators because it has not been updated in recent years to reflect the growth of your bank
2. Your Vendor Risk Management program continues to be managed by one or two people—or—managed by individual business owners, and the management and monitoring of vendors is becoming increasingly overwhelming and unorganized as more and more vendors are added to your bank
While Jay’s feature in the Independent Banker story only touches upon a vendor management software system’s ability to manage staff requirements, costing less than a single employee and delivering the benefits and productivity improvements equivalent to several employees, there is so much more that a vendor management solution can do for your organization. Often put on the back burner due to not being an “active” money-maker, a strong vendor risk management system may be your greatest offense against a major weakness in many community banks—regulatory compliance. It can also be one of your greatest money-savers.
Each year, hundreds of millions of dollars are spent unintentionally because vendor contracts automatically renew, committing companies to pay for services they no longer want, and vendors will impose annual price increases that are not monitored, understood, or validated. So, in addition to saving you money from a staffing position, an automated VRM solution will allow you to understand exactly which vendor costs will increase, when, and by how much.
A vendor management software system also allows for easier, faster completion of required tasks and activities such as vendor risk assessments, performance reviews, or RFPs, and results in improved resource utilization and productivity—all saving your bank and your employees valuable time.
Automated vendor management systems, especially the class-leading solutions offered by reliable, established companies like VendorInsight®, can be easily and quickly implemented. They are easy to use, reliable, cost-effective and efficient.
Now, let’s go back to the issue of having limited resources. VendorInsight® understands that one size does not fit all—many times a community bank simply doesn’t need an enterprise level vendor management system yet, just a system that meets their regulatory requirements and allows risk monitoring and vendor relationship management. That’s why we’re happy to offer multiple levels of software and services—so that you can have the assurance and quality of a premier system that fits your needs AND your budget, with the ability to grow as you do.
To learn how VendorInsight® can help your community bank keep up with the growing regulatory demands, simply fill out our contact request form (link found below) and we will be in touch soon.