Summary:
Banks and credit unions are more reliant than ever on suppliers and third-party technology providers to keep pace with the continuously evolving digital landscape and to provide the state-of-the-art experiences that customers expect. A natural synergy exists between fintech firms and financial institutions — fintech is well-equipped to design and deliver solutions rapidly, often at a lower cost than in-house development.
Still, there are plenty of curves in the road that must be navigated before arriving at a win/win partnership — one of the biggest centres on contract negotiation and optimisation. Whether a financial institution is dealing with an existing vendor or coming to terms with a new provider, an inevitable power imbalance looms over the negotiation process.
Over our 30 years of representing clients in contract negotiations, we have identified seven keys to determining success.
Report Highlights
- Develop a Disciplined Approach: A common thread linking most of these lessons is the need for a programmatic approach to financial technology contracts.
- Pay Close Attention to Renewal Terms: Most financial services technology contracts include a clause requiring the customer to formally notify the supplier of its intent to revisit the agreement’s parameters at the end of the term.
- Be Aware of Renegotiation Opportunities: Expiration and notification dates aren’t the only contract-altering events that must be tracked…
Patrick Goodwin
President
About The Author
Patrick oversees the implementation of bottom-line improvement strategies for SRM’s clients. He has nearly 20 years of contract negotiation experience spanning two dozen distinct specialties. His acquired knowledge of credit and debit card services, M&A contracts, and beyond remains vital to the company’s continued diversification and success. At SRM, Patrick has developed a world-class project management group that uses decades of negotiation and benchmarking knowledge to deliver previously undiscovered or overlooked savings opportunities to banks, credit unions, and other various markets.
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