No more handshake agreements with credit union vendors

first_img 7SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr Directors play a key in role in ensuring the viability of third-party relationships.As credit unions become more sophisticated, their third-party vendor management programs must follow suit. The days of handshake agreements are over.Credit union boards play an essential role in this evolution.NCUA and the Consumer Financial Protection Bureau expect credit unions to have an effective process for managing third-party relationship risks.This involves some duties that apply to the credit union as a whole, and others specific to directors.The CU’s responsibilitiesConsider three key vendor management responsibilities for credit unions:1. Determine which services to outsource. Every credit union’s capabilities for handling certain operations in-house differ.Regardless of which operations and products other credit unions delegate to third parties, examine and discuss how outsourcing would create value for your members and strengthen your credit union’s position. continue reading »last_img