Trust Exchange partners with 3PAS to streamline Third Party Assessments on its platform.
Using Operational Risk Management Framework for Vendor Monitoring.
Banks are missing a big piece of Vendor Monitoring
We're co-hosting an event with our partner Audit Link this Wednesday, March 29th from 11to 11:30 ET. The web conference will focus on the cost of Credit Union Vendor Management. There will also be q & a with Jim Vilker, VP of Professional Services and Edward Sullivan, CEO of TrustExchange.
The webinar will cover the following topics:
•FFIEC and new OCC guidelines and requirements
•Responding to Alerts or expired/updating due diligence
•Periodic reviews and reports
• Report to management significant findings
•Report to Board on significant findings
•Keeping up with the changing regulatory environment
The Trust Exchange is a community of businesses who securely disclose and monitor key information to increase their trust in each other. Compliance is a key application for our platform and we are redefining how credit union vendor management should be done. To learn more about how we work with partners like AuditLink to solve compliance problems in many industries, follow the contact link below.
More details can be found HERE.
I read an interesting article recently in FinRegAlert: Fintech, Regtech and the Role of Compliance. In it the author points out the tension between the drive to adopt new financial technologies and complexity added by new regulatory requirements. The article is a good summary of the information published by Thomson Reuteurs which can be dowloaded here. However, I do think it misses a key point in that the new regulatory requirements are an EXPONENTIAL increase in complexity which will never be fully addressed by incremental regtech.
Exponential problems are difficult if not impossible to get under control and trying to solve these problems wtih linear solutions (more storage, processors or deploying more people etc.) is a fool's errand that can add unbounded cost. The solution is exponential regtech!
Here at Trust Exchange we are working to solve these problems by bringing exponential technologies to the sharp edge of these challenges. For instance, we are using crowdsourcing to solve the data collection problem inherent in most regulatory requirements. Like Facebook collect information from the edge, compile it and present it in clear and actionable ways.
If you wold like to learn more, CONTACT US for more information.
As discussed in our earlier post about B2B Credit Middlemen, a powerful aspect of doing business on the Internet is the elimination of sales and distribution layers between the producer and consumer. In a typical non-Internet value chain there are many “value-added” steps in the process between the producer and consumer. Each step increases costs and reduces profit.
Internet distribution models eliminate many of these steps by scaling distribution and eliminating sales complexity (e.g. Amazon, iTunes and Zappos). In this post, we will attempt to illustrate the value chain for the B2B credit industry and point out the false value provided by the credit industry middlemen: the credit bureaus.
Credit bureaus estimate a company’s viability by aggregating data from other businesses for them to use in making new credit application decisions. Unlike banks and financial institutions, they DON’T ISSUE CREDIT. Businesses issue credit to each other and should be the real arbiters of worthiness.
Furthermore, this data is created by businesses, provided to the credit bureaus (for a fee of course), and then resold to other businesses. The never-ending fees keep people from using the service and in turn make the data less accurate, less timely and pretty useless. Who is a better judge of a company’s viability: a random call center operator or the people at companies who interact with each other?
Free the Data
The prevalent business model among these bureaus is to charge companies to ”establish” their profile, charge to view other companies’ profiles and charge to submit data regarding the quality of interactions they have with other companies. Charging to submit data is a disincentive to accuracy and keeps the largest population of companies (small businesses) from participating. If companies could freely exchange THEIR data, then there would be a more timely and probably more accurate way to determine creditworthiness.
The value of the data increases as the number of active users in the network increases. A sort of Metcalfe’s Law for social networks in practice. The data should be free!
At Trust Exchange we've creating a community of businesses who disclose information with each other to build trust. We believe that with increase trust, business happens faster and more effectively. We've helped many companies in several industries. If you're interested in learning more you can either request a DEMO.
OR...just get started with a Free account HERE.
When businesses Trust each other, the cost of doing transactions decreases while the speed increases. In the b2b world, Trust isn't static and should be monitored and maintained.