The National Credit Union Administration (NCUA) has unveiled a new guidebook that aims to provide credit unions with information and advice on negotiating contracts for digital services.
Titled "The Basics of Data Processing Contracts" – which is available through NCUA's
The guidebook covers important elements of the contracting process, including: requesting and evaluating bids; performing due diligence on potential vendors; negotiating terms, including pricing, performance requirements and liabilities; as well as contract management and compliance.
"Knowing how to negotiate a strong contract is essential to running any business," Jean-Marie Komyathy, acting director of NCUA's Office of Small Credit Union Initiatives, said in a statement. "Credit unions frequently turn to outside companies to provide crucial digital services, including data processing, mobile banking and information technology. If these business relationships aren't properly managed, a credit union can face potential risks, unanticipated costs and legal expenses. That's why a good contract is so important, and our new guidebook helps credit unions write those contracts."
The Small Credit Union Learning Center is part of the regulator's Office of Small Credit Union Initiatives (OSCUI). The new guidebook is
