Technology Outsourcing: Informational Tools for Community Bankers / FIL-13-2014

On April 7, 2014, the FDIC re-issued three documents related to technology outsourcing as an informational resource for community banks. These documents provide insights on how to select service providers, draft contract terms, and oversee multiple service providers when outsourcing for technology products and services.

“Fintech partnerships can enhance a bank’s capacity to serve its customers, improve operational efficiencies, and keep pace with technological innovation. However, these partnerships also present unique challenges and risks, particularly for community banks.”

“Clear definitions of accountability are important to ensure that both the bank and the service provider understand their roles and responsibilities for each service level requirement. Incentives and penalties can play a key role in establishing accountability.”