Pub. 2 2021 Issue 1 16 In Touch N ow that consumers are adapting to remote banking, they will expect these same services post-pandemic. With record-low interest rates, financial institutions are managing decreased yield and increased loan originations while also facing increased refinancing demand. To meet this demand, financial institutions should consider digital lending tools to enable self-service, communication, and online servicing that drive ROI in our socially distant environment. When evaluating a digital lending tool, there are many things to consider: Evaluating the Value Proposition Holistic partnership • Evaluating knock-on or complementary benefits to the actual service • New customer acquisition • Marketing Benefits • Credit data/access to market intel • Diversification Contact References • Existing Partners are an excellent source of information and review of a platform. One to two references can speak to performance, integration, and client service • Talk to peers current utilizing the service/partner Best-in-Class Due Diligence Review • Transparency into historical records • Easy access to all internal policies for all internal teams (online data rooms) • Audit Support and Preparation Legal and Compliance  Review of partner application flow  Review of sample marketing materials  Review of borrower agreement, TIL, etc.  Review of current licenses  Company policies on compliance  Complaint handling procedure  Training course catalog (and content, on request)  Training course assignment matrix  Regulatory applicability matrix  Red Flags procedures/SAR referral procedure  OFAC sanctions procedure  SCRA procedure  CIP and customer due diligence procedure  Privacy procedures Enterprise Risk  Information security policy + training  FSSCC ACAT assessment results  BCP/Disaster recovery plan  Summary of BCP/DR test results  Credit risk committee minutes Vendor Management  Vendor management policy  Annual vendor audit plan  Sample vendor due diligence worksheet Operations/Servicing  Screenshots of borrower application funnel  Collections procedure/ bankruptcy procedures Sample Oversight Checklist Transparency and Due Diligence “Playbook” Essential for efficient and fast onboarding BY NIK VUKOVICH, UPGRADE Evaluating a FinTech Partner A s s o c i a t e M e m b e r