The Decision Maker

Manage Your Vendors to Protect Your Brand

Posted by Jeff Johnson on Sep 5, 2019 10:54:00 AM

As the web of vendors to credit unions becomes more complex – core vendors, digital banking vendors, credit/debit card processors, Loan Origination System (LOS) providers, IT vendors, consultants, loyalty programs, legal services, and the list goes on – vendor management has become a necessary core competency. However, most credit unions don’t have the time, resources and/or expertise to manage their vendors properly. At many credit unions, the problem goes much deeper. With no contract life-cycle management in place, auto-renew contracts continue, sometimes in perpetuity. There is a lack of awareness of the risks of not managing vendor contracts. 

Without formal vendor management, a credit union lacks awareness of who their key suppliers are, where they are spending their money, and ensuring that their third-party vendors remain compliant with Federal and State regulations. In addition, vendor management will ensure that the third-party vendor continues to protect and secure the credit union‘s data and that of its members, whether on-premises or outsourced, reviewing annual reports and ensuring the vendor is compliant with the SSAE 18 / SOC 2 Report and Payment Card Industry Data Security Standard (PCI DSS), for example.

It’s hard for a credit union to ignore its vendors. They are critical to success, and most times, are at the heart of the organization’s processes and activities. Although invisible to members when everything is going well, failure on the part of a vendor is a direct reflection on the credit union.

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Topics: Strategic Partnerships, Data-Driven, Vendor Management

In the Thick of Disruptive Innovation: Credit Unions and Collaborating for Analytics

Posted by Alex Beversdorf on Nov 6, 2018 11:06:00 AM

In the 3rd episode of the Data Lake BIGcast series, Disruptive Data, John Best speaks with Allied Solutions’ David Hilger and Michael Bryan, Senior Vice President and Head of Digital Strategy respectively. The discussion features a very interesting conversation with Allied Solutions about the drastic changes taking place in the financial services industry. They also discuss their partnership with OnApproach and how the implementation of a collaborative data lake for credit unions will completely change the landscape of the industry.

Technology-Driven Business

The worlds of business, financial services, and even our daily lives are constantly changing because of increasing technological capabilities. One major discussion point lately has been the introduction of autonomous vehicles. Leading the charge are large car manufacturers like GM, Ford, BMW (to name a few) and the well-known tech giant, Google. How would this change the insurance industry and how could big data and analytics impact this massive change? David Hilger explains:

Some say it’s a threat to the individual insurance market. At some point when everyone has an autonomous car, where does insurance fit into that? When people stop lending for cars then they will have to stop worrying about the insurance for the cars. The goal of our product is to make sure that the financial institution is protected if there is an accident. For autonomous cars, it depends on the ownership model. Predictive analytics could provide us with more insight. What type of cars, people, borrowers are a greater risk to the institution? Our client is the institution and that’s who we are trying to protect but there is a whole lot of other things that play into this. We don’t have the perfect insight, but we have the scale of data that can help achieve this.

Meeting Consumers’ Expectations: Not Easy but Essential

There have been successful and unsuccessful stories with the use of big data in the past decade or so. As discussed in the Disruptive Data podcast, a primary example is the clear difference in data integration capabilities across companies like Amazon, Netflix and Domino's, compared to the once promising Blockbuster. Being able to analyze and better understand where consumers’ tastes lie is very important to the financial viability of an organization and the community. Consumers have come to expect excellent, personalized and consistent customer service behavior from the merging companies like Amazon, Netflix and Domino's. Michael Bryan explains:

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Topics: Strategic Partnerships, Collaboration