There are fewer than 40 banks in the U.S. managing between $25 billion and $75 billion in assets.
These financial institutions have heightened regulatory and organizational challenges when it comes to managing their third- and fourth-party (vendor) relationships as a result of:
- Higher level of scrutiny from regulatory bodies than smaller banks.
- Decentralization of stakeholders and subject matter expertise.
- Multiple affiliates and multiple geographic locations.
- Unique areas of specialization.
“In banking, we talk a lot about having to Know Your Customer, or as it’s often referenced, KYC. Because of their heavy reliance on third- party vendors, banks really need to get to know these entities also,” said Jay Fitzhugh, Executive Vice President and Chief Regulatory Advisor for CMPG Risk Solutions.