Vendor Contracts
I continue to do a lot of work in this
area, as banks often have contracts with terms and conditions that
they don't fully understand, in part because they haven't carefully
read what they are signing. The contracts that you have in place now
are important, because they dictate what you can and can't do in
terms of buying new products from third parties, or discontinuing the
use of certain products, and they commit you to fees and penalties
for changes and early termination that can be significant. Make sure
you know exactly what you've committed to, especially with your
larger contracts, such as core accounting and item processing, so
that your decisions are in line with those contractual relationships.
Finally, don't forget that when new contracts are considered
(whether for an add-on product, or a complete renewal or new
relationship) that you must carefully review those, and consider the
terms and conditions so that you improve your position relative to
your older contracts.
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