Vendor due diligence is a term used to describe the process a company goes through to determine if a potential business partner “checks the boxes” to be deemed worthy of providing the service(s) desired by said company from a reputation, strategic, compliance and transaction standpoint. While almost all financial institutions have some process in place for evaluating third-party vendors, what happens after all the boxes are checked? Are they just another approved vendor, or are they a trusted business partner? Only time and experience with the vendor will tell.
First, let’s find out what boxes need to be checked, identified by the Office of the Comptroller of the Currency (OCC 2001-47), which is used by most financial institutions.
Now, let’s assume that all the boxes are checked, and you’ve agreed to enter into a contract with a vendor. What happens next, and how do you truly evaluate your business partner? Here are some questions to begin asking to determine if they are adding value to your relationship.
Unfortunately, the service of your vendor after the vetting process often isn’t what you expected or what was promised. In fact, it can be downright unacceptable as compared to your standards and what you demand of your response time for your customers.
At Unitas Financial Services, we take pride in providing the service level and expertise within the scope you should expect from all business partners.
Check out our article: Tips for Negotiating Long-Term Vendor Contracts for Lenders
At Unitas Financial Services, we take pride in providing the service level and expertise you should expect from all business partners. You may want to read our article about How to get Maximum Benefits from your Collateral Protection Partners.