Third-Party Relationships - an Update

Send us a text. (email us if you need a response) In this episode of "Wrestling Payments," host Joe Casali welcomes back Nanci McKenzie for a follow-up discussion on third-party relationships within the financial industry. Nanci, an independent consultant with extensive credentials in banking and risk management, shares insights from her session at PMC 2024. She emphasizes the evolving nature of third-party relationships, particularly the regulatory changes and guidance updates from agencies like the OCC, FDIC, and the Federal Reserve Board of Governors. Nanci and Joe dive into the specifics of interagency guidance approved in 2023, which now includes fintechs and offers consolidated advice for banking organizations. They discuss the critical aspects of these regulations, such as consumer data protection, compliance requirements, and the implications of third-party relationships on risk management. Nanci highlights the importance of identifying and managing risks associated with third-party vendors, stressing the need for comprehensive information security programs and regular audits. Towards the end of the episode, the conversation shifts to data privacy and the potential complications arising from the CFPB's new rule under the Gramm-Leach-Bliley Act. Nanci points out that financial institutions must ensure their third parties comply with these regulations to safeguard against data breaches and financial crimes. Joe and Nanci conclude by acknowledging the increasing complexity of compliance and the ongoing need for vigilance in managing third-party risks. To hear this episode and many more like it, listen here or subscribe to Wrestling Payments on Apple Podcasts, Google Podcasts, Spotify, or anywhere else you listen to podcasts. For show notes, transcripts, and other resources visit www.wrestlingpayments.com. Host: Joe Casali, EVP, NEACH #wrestlingpayments #wrestlingpaymentspodcast #paymentspodcast