We've been using an on-site shredding service for quite some time but they have become undependable. We've found a respectable company that provides off-site shredding (they take the locked cans full of documents to their secured site for monitored shredding). All of their credentials and security procedures are impressive but we're having trouble warming up to the idea that documents would leave our site unshredded. They say they have PNC's national account for off-site shredding. Is your bank comfortable with off-site shredding?

Have you performed your vendor due diligence? And have you contacted PNC regarding this vendor? When you used an on-site firm, did a bank employee stand their and watch them shred the documents?

I would not be comfortable with offsite shredding. We use an on-site shredding service and an employee watches them shred everything (it only takes 20 minutes once a month for our smallish bank). I simply can't imagine explaining offsite shredding to our regulators, but if I were to entertain the possibility, I'd for sure be making a site visit to the shredder and watching how they handle the shredding before signing any contracts. I'd also get 3 references of other banks doing this and talk to them about how their regulators viewed the practice. I'd also have the shred company sign a nondisclosure/confidentiality form and require them to send me a document certifying that they were sent 5 locking cans and they shredded 5 locking cans (with serial numbers) on such and such date and time.

I've heard of off-site problems, but we enjoyed our relationship with a company that did this for us. They were very open to allowing us to do unannounced site visits to track the process. I don't think it is the best option if on-site is available, but sometimes it is what it is. Cost and reliability certainly will influence this.