Overview
Oftentimes, financial institutions are unaware of potential optimization opportunities to improve the economics, terms and conditions, and drive efficiencies within their contractual relationships. We use our deep industry knowledge and unparalleled expertise to achieve market-competitive outcomes when supporting our clients’ contract negotiations. As an industry leader in contract optimization and customized solutions across critical vendor relationships, we improve our client’s bottom line in key payments and technology such as card networks, pin pos, card processing, core processing, digital banking, CRM, middleware, and LOS/OAO.
Common Vendor Contract Negotiation Challenges:
- Focus on optimizing the incumbent relationship or incurring divorceable issues related to technology, service, performance, or security.
- No strategy surrounding major technology agreements resulting in a reactive approach versus proactive
- Inability to map or process the connectivity and implications of various platforms and contractual timing
- Identification of key elements important to strengthening negotiation strategies and leverage to achieve goals
- Experience once every few years and no frame of reference in what to address and ask for when renewing or entering new partnerships
- Understanding complex technology agreements, data from invoices and reports, and key growth drivers for new contractual terms
- Decentralized contract management approach with various stakeholders not communicating or capitalizing on a combined approach
- Keeping up with third-party risk management expectations from regulators and auditors
- Legacy, multi-year contracts with unfavorable terms and conditions and economics
- Ability to keep legacy providers while removing ancillaries to add best in breed solutions
- Difficulty aligning business, technology, and risk priorities in vendor decisions
How Our Vendor Contract Negotiation Experts Can Help:
- We have more experience negotiating with third-party service providers on behalf of our clients than any other advisory firm.
- We look at your vendor contract picture holistically, to make sure that any decision you make today doesn’t create other challenges tomorrow.
- We manage the most detailed pricing benchmark database in the industry and have delivered more than $10 billion in cost savings and revenue growth to our clients, which has saved over $10B.
- Dedicated team of sourcing advisory analysts and consultants negotiate hundreds of agreements each year applying a deep market understanding to achieving optimal results.
- Customized, tailored approach to each client’s unique circumstances and do not try and fit every client into a box.
- Quantify and track measurable results from engagements providing transparency and accountability to our clients.
“The SRM team has the experience, skillset, and ability to provide big dollar savings. We have seen the significant financial impact SRM has made on our business… They are very easy to work with, and the process is simple and efficient.”
– Scott Mitchell, EVP and CFO of HAPO Community Credit Union
Read the full case study here.
Cody Harrell
Chief Sourcing Practice Officer
“30+ years of proprietary intelligence surrounding payments and technology contracts coupled with deep industry expertise from thousands of engagements has helped clients unlock their full potential and save billions. With industry experts from financial institutions, vendors, and other consulting firms, SRM has more experience negotiating with third-party service providers than any other advisory firm. SRM is a catalyst for growth helping FI’s make complex decisions with confidence!”
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