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#1972643 - 10/29/14 01:53 PM Negotiating Vendor Contracts
Stacey Cammack Offline
New Poster
Joined: May 2013
Posts: 21
I am employed at a small community bank. We find that during the contract negotiation process some of the larger corporate vendors are not so willing to make changes to the agreement that will better align the agreement with the FDIC guidance on third party vendors. Often we are told that no other banks have asked to have changes made. Vendor Management is becoming an area under greater scrutiny but when you have such large companies dictating the contract terms how do we remain compliant while trying to remain competetive in today's market? What other recourse do we have other than not signing the contract?

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Risk Management
#1973784 - 11/03/14 08:20 PM Re: Negotiating Vendor Contracts Stacey Cammack
dcl1963 Offline
100 Club
Joined: Feb 2006
Posts: 178
LA
I'm also with a small community bank but haven't ran into any issues with our vendors yet. Not sure what the changes are you're requesting; but perhaps provide the guidance on third party vendors to them and then ask for a response in writing as to why they will not make your requested changes to the contract; obtain references of other banks using the vendor and make some calls to determine if they are satisfied with the vendor and if they requested any changes be made to their contract with said vendor; if this is a vendor you've used and contract is renewing determine if you're willing to take on any risk associated with not revising the contract; discuss with your Regulator prior to signing the contract; or as you said, don't sign and try to find another vendor. Good luck!
_________________________
In God we trust, all others pay cash. . . Jean Shepherd

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#1973866 - 11/03/14 10:58 PM Re: Negotiating Vendor Contracts Stacey Cammack
osucpa Offline
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Joined: May 2011
Posts: 1,406
Have a conversation with a local competitor about vendors they use and the willingness for their vendors to change specific language.

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