The American Bankers Association today outlined possible features of a public-private partnership that could certify third-party technology providers. ABA’s comment letter came in response to a recent request for information from the FDIC seeking feedback on the potential development of a certification program to help reduce the cost, inefficiencies and uncertainty related to onboarding third-party service providers.
ABA expressed appreciation for the FDIC’s willingness to explore strategies for reducing the friction and duplication associated with third-party onboarding and oversight but recommended that a potential public-private partnership distinguish between technology in the general sense and products that are truly cutting-edge. The association suggested multiple features of a public-private partnership that would be worthy of further exploration, such as establishing multiple tiers of review, standardizing the due diligence information banks should collect and review and concentrating on existing service providers rather than emerging firms and technologies.
ABA also identified features of a public-private partnership that would promote bank participation, including active interagency involvement and the ability of banks to rely on due diligence information and findings provided by a certifying organization.