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Best Practices

October Vendor Management News

Oct 10, 2019 by Venminder Experts

Check out latest third party risk management news so far in October. It's important to catch the headlines. We've helped make it easier by making a list below. 

Recently Added Articles as of October 10

This week’s news is largely alphabet soup. It’s made up of the OCC talking CRA, NAFCU talking about the CFPB and even some news from BBVA.

States continue to join the recent Facebook suit: Most of us have a Facebook profile. You often think about how your third party vendors are using your organization and customer data, but how often do you stop and think about how Facebook is using your personal data? Now, 40 states are investigating and joining suit against the social media platform. This probe seeks to determine if Facebook reduced the quality of customer choices, increased the price of advertising, endangered customer data and other anti-competitive practices.

An overview of how BBVA decides which fintech companies to partner with: BBVA is utilizing fintechs more and more. With this, they’re almost obscure to the customer. So, they definitely have to be careful when choosing their fintech partners. In this article, they share some insight regarding how they pick a fintech partner which includes the due diligence and vetting process, reviewing the fintech’s risk management policies and more.

The OCC on CRA: In addition to third party risk management evaluations, banks are routinely evaluated for Community Reinvestment Act (CRA) performance. Here’s the OCC on the CRA. And, it should be noted, the OCC puts emphasis on modernizing the CRA regulatory framework.

CFPB one-click away rule is discussed: Recently, in Compliance Blog, NAFCU provided more insight and guidance regarding the CFPB’s one-click away rule. Specifically, they cover violations of the one-click away rule which include hyperlink requirements.

Cybersecurity remains the focus of many seminars: At the NAFCU Risk Management Seminar and the Regulatory Compliance Seminar last week, cybersecurity challenges remained the center of interest. On the agenda was the basics of cybersecurity, outsourcing IT, trends, risks and more. Sounds like the two seminars covered a lot of great information. Did you attend?

Recently Added Articles as of October 3

We kick off October with a lighter news week. There’s a lot of talk around de novo efforts, TSP regulations and a CFPB lawsuit.

Regulation of bank technology vendors: Legislation was recently approved that would significantly improve state and federal regulators’ ability to facilitate examinations of bank technology vendors. The law is The Bank Service Company Examination Coordination Act, H.R. 241. Federal regulators already have rights around these examinations; however, state regulators do not. This update will help with that. Are you glad to see this change?

De novo efforts stalled: So, why so few new banks? Of 33 de novo applications filed in the last year, only 17 have been approved so far. Many think regulators are to blame, but it turns out the main reason may be challenges in raising capital. Other factors include inexperienced founders and economic reasons. What’s next then?

FCO Holding under fire: The CFPB filed suit against FCO Holding, Inc. and subsidiaries. The debt collectors violated three regulations: Fair Credit Reporting Act, Regulation V and the Consumer Financial Protection Act. What are some of the reasons that led to this third party enforcement action? FCO failed to review their indirect dispute handling policies, provided information about accounts prior to investigating the accuracy of the information and more.

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Venminder Experts

Written by Venminder Experts

Venminder has a team of third party risk experts who provide advice, analysis and services to thousands of individuals in the financial services industry.

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