News

It’s not just FIs — vendors must respond to tightened regulations, too

June 12, 2014

Besides dampening innovation and driving up costs, increased banking regulation can result in a shrinking pool of qualified vendor partners.

This is the assessment made by Richik Sarkar, of the litigation department at McDonald Hopkins LLC, in a recent Bloomberg BNA Banking Report article, “Increased Regulations Don’t Just Burden Banks; Vendors Must Also Manage Risk.”

As a result, he said, vendors must be proactive in their planning, understanding their clients’ needs, regulatory environment, and expectations in order to properly manage risks.

To stay viable within the industry, bank vendors must analyze the guidance provided to banks and proactively anticipate, identify and address their bank clients’ needs. This will ensure that the bank and vendor have clear expectations with respect to managing operational, regulatory, and reputational risk.

The article outlines the regulatory guidance provided to banks and presents a corresponding course of action for vendors.

Download the article.