With heightened regulatory concern coupled with increased outsourcing, financial institutions are carefully managing their supplier relationships. In what was once a calm environment, risk management and regulatory examination now spans the selection decision of suppliers, the information gathered on them, and their supervision at all financial institutions. In fact, regulatory compliance has substantially elevated the importance of supplier management from a department-level process to an enterprise-wide effort.
What’s more, despite the additional risk exposure of leveraging suppliers, financial institutions are increasing the rate of outsourcing and utilizing suppliers in order to drive down costs.
To achieve this, however, the institution must have the infrastructure in place to collect and manage accurate and actionable supplier information – something that financial institutions hadn’t focused on previously. To complicate matters more, financial institutions have traditionally led all industries in consolidation through mergers and acquisitions. The net effect has been very large institutions, with many suppliers and many, many disparate information systems, each holding different and, at times, inaccurate supplier information.
Further, commercial banks often operate a large network of branches, thus creating a bigger network of “buyers.” By moving into international markets, local suppliers and onboarding needs complicate the supplier management system.
Assuming, though, that there is a foundation for clean, accurate supplier and trading partner information across the enterprise, financial institutions are under considerable pressure to act and comply on a record number of new regulatory compliance measures, often differing by country. The reach of these regulations has financial institutions digging deeper into their supply base, often to the second or third tier, as noncompliance can lead to stiff penalties and damaged reputations.
Teams have been mobilized to monitor compliance for FCPA/Anti-Bribery, GLBA, BSA, SOX, and many others. Without intelligent supplier management systems, manual efforts have fallen upon cross-functional teams, exposing the institution to errors, missing information, and compliance risk.
HICX understands the pressures that financial institutions face. Our products are designed to assist large, global institutions to collect and manage information, regardless of country or existing supplier management systems.
Whether creating a spotless supplier master that can syndicate key data to downstream systems, publishing supplier/trading partner scorecards, driving compliance initiatives, or viewing supplier performance and risk further down the supply chain, HICX is confident that we can help your organization – and we welcome the opportunity to show you how.
Featured Case Study
A large European financial institution, with heavy manual onboarding needs, struggled with consistency and allocation of internal resources. With HICX Solutions they were able to outsource the transactional processes in the collection and maintenance of supplier information and documentation. By outsourcing these processes, they were able to recover over $220,000 in hard dollar savings, reduce onboarding time by 18 days, and ensure compliance standards were met.
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