DIGITAL BANKING

Vendor management and data protection As digital ecosystems flourish as a result of third-party data sharing ( Open Banking ), vendor management becomes increasingly important . Fintechs must ensure compliance across the board with their partners , particularly when sharing customer data with third parties .

Just as partners can innovate with one another ’ s data , they are also custodians to ensure consumer data is secure .

“ Fintechs can ensure compliance through a variety of measures , including rigorous vetting processes and thorough due diligence on all potential business partners ,” suggests Sara .

“ They should evaluate a partner ’ s data protection policies and compliance with relevant regulations . This involves assessing the partner ’ s security infrastructure , data-handling practices and historical compliance records .

“ Operational resilience is a key theme for regulators and ensuring you understand which providers support your important business services and how you mitigate the supply chain risk is critical .”

Sara underscores the importance of detailed contractual agreements to establish responsibilities regarding data security and enforce adherence to applicable data protection laws . “ Putting this framework in place can help persuade partners to prioritise their data management and help avoid fines or even legal battles ,” she adds .

For Brandee , vendor due diligence is also key . “ Thorough due diligence on vendors , focusing on their security practices and compliance centre records , ensures smooth operations during this critical time .

“ Clear contractual agreements , regular audits and strong collaboration help maintain compliance and protect customer data through the fiscal year end .

“ Engaging with regulatory bodies and industry forums provides timely insights , helping firms adapt swiftly to any end-of-year regulatory changes ,” she adds .

Simona emphasises the complexity of managing international partners and vendors to maintain a competitive advantage : “ Implementing and running a strong , scalable vendor risk management process is more important than ever ,” she concludes .

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