compliance risks. Proper due diligence of a fintech partner considers how the relationship could alter your risk profile. Your organization should trust but verify the information provided to you. There are some critical areas to analyze and confirm: established business relationships, financial performance, compliance program performance, reputation and litigation research, risk controls and technologies used. One crucial aspect of due diligence that should not be overlooked is the need for ongoing analysis once a fintech is integrated into your organization. No matter what service the fintech provides, your institution is responsible for confirming that the fintech meets its contractual and service-level responsibilities throughout the life of the relationship. Failure to identify and address inherent and developing third-party vendor risks could reduce a company’s revenue stream, cost the organization valuable time and resources, jeopardize the safety of customers’ personal identifiable information (PII), damage the organization’s public reputation and increase regulatory scrutiny. Concluding Thoughts The recent failure of several high-profile fintech partnerships suggests a lack of effective due diligence at some juncture in their relationships. The guidelines and information presented here are designed to help your institution avoid the same fate. Common sense dictates that any type of new business relationship, fintech or otherwise, should be fully vetted and understood before it begins. The due diligence journey is endless, but you do not have to go it alone. Turn to those who are ready to help you along the way. 800.228.2581 MHM.INC Now more than ever people want self-service options. With our core integrated ITMs we can make this a reality both in the lobby and in the drive-up of your branch. SELF-SERVICE BANKING 20 NEBRASKA INDEPENDENT BANKER
RkJQdWJsaXNoZXIy MTg3NDExNQ==