Banking and Mortgage Professionals Weigh In on Vendor Management Processes and the Need for Technology Adoption
June 26 2018 - 9:33AM
Vendorly, an innovative vendor oversight platform for financial
institutions, polled banking and mortgage professionals on their
organizations’ vendor management processes, challenges and
technology capabilities. According to the VendorlyTM study, there
is a need for the implementation and enhancement of vendor
management programs within the banking and mortgage industry. Three
in five respondents (59 percent) said their organization does not
have a fully comprehensive vendor management program in place. Of
those respondents, one-third (33 percent) said their organization’s
vendor management program needs improvement.
Vendor Management Staffing Conditions and the Need for
Improved Operations
When asked about the biggest challenge their organization faces
within vendor management, more than one-third (36 percent) of
respondents identified employee capacity to handle workload or
vendor management as the greatest challenge. It is not surprising
that the biggest vendor management challenge may depend on the size
of the company’s vendor management team. Among survey respondents,
40 percent said their organization has three or more full-time
employees dedicated to their vendor management program with 39
percent stating they have less than three.
Nearly half of respondents (44 percent) said their organization
is responsible for managing at least 100 vendors. With this volume
of vendors to manage, it is no surprise that the second biggest
challenge cited by professionals was knowing who their vendors are
and tracking them (27 percent). Vendor inventory size and
management may also influence reporting frequency. When asked how
often their organization monitors and assesses vendor performance,
30 percent of respondents said annually. The Growing
Importance of Technology for Efficiency and Enhancing Vendor
Management Processes
The need and desire for proper technology is evident among those
surveyed. Nearly half (47 percent) said their organization does not
have a technology solution in place to help manage vendors. A large
majority (90 percent) believe technology would positively impact
their vendor management program and process. Of those respondents,
more than half (59 percent) said automation would help increase the
efficiency of their program, 41 percent said technology would
improve reporting capabilities to executive management and
regulators, and 36 percent said it would improve effectiveness of
vendor management by mitigating vendor risks. “The
importance of technology to drive efficiency, increase due
diligence and further improve an organization’s vendor oversight
processes is becoming a realization for many,” said Jim Vaca,
Senior Vice President, Vendorly. “However, as the survey results
show, even though many have identified the need for a vendor
management solution, a surprising number have yet to adopt or
implement the technology. Our solutions allow for financial
institutions to move away from historic and inefficient vendor
management processes and transition toward a multifaceted vendor
oversight program to help them achieve more efficient management of
the process using much less human capital than otherwise would have
been required without our technology.”
Survey Methodology The survey had 78
participants and was conducted February to April 2018. Respondents
consisted of banking and mortgage professionals with one-third from
mid-sized banks ($1–$3 billion-plus produced annually in
origination volume) and the remaining respondents from small- to
mid-sized banks (under $1 billion produced annually in origination
volume).
About Vendorly™
Vendorly is an innovative SaaS vendor oversight platform
designed to help financial institutions manage their vendors and
meet their evolving vendor oversight obligations. The Vendorly
platform can help to streamline vendor due diligence, document
maintenance, monitoring and audits. Vendorly is part of the
Altisource Portfolio Solutions S.A. (NASDAQ:ASPS) family of
businesses. Additional information is available at
vendorly.com.
About Altisource®
Altisource Portfolio Solutions S.A. (NASDAQ:ASPS) is an
integrated service provider and marketplace for the real estate and
mortgage industries. Combining operational excellence with a suite
of innovative services and technologies, Altisource helps solve the
demands of the ever-changing markets we serve. Additional
information is available at altisource.com.
Source: Altisource Portfolio Solutions S.A.
Investor Contact:Indroneel
ChatterjeeChief Financial
Officer+352-2469-7988Indroneel.Chatterjee@altisource.com
Press Contact:Britt E.
GottliebSenior Manager,
Communications617-728-6118Britt.Gottlieb@altisource.com
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