Most mortgage lenders and banks do not maintain a comprehensive vendor management strategy, exposing institutions to increased compliance risk, according to a survey by vendor oversight platform Vendorly.
Almost 60% of industry executives do not have a fully comprehensive vendor management program in place, which is especially important after the Consumer Financial Protection Bureau
Three in five mortgage and banking professionals claimed their organization does not have a fully comprehensive vendor management program in place, with 33% of those stating their firm's vendor management program needs improvement.
Staffing conditions arose among the biggest issues plaguing companies' vendor management initiatives, with 36% identifying employee capacity to handle workload or vendor management as the biggest hurdle.
About 40% of respondents claimed their organization has three or more full-time employees working in vendor management, with nearly the same amount, or 39%, stating they have less than three. Still, 44% said their institution manages at least 100 vendors.
The second greatest vendor management challenge cited by mortgage and banking professionals was identifying and tracking vendors.
About 47% of those surveyed do not utilize a technology platform to assist with vendor management efforts, but 90% claim it would positively affect performance.
"The importance of technology to drive efficiency, increase due diligence and further improve an organization’s vendor oversight processes is becoming a realization for many," Jim Vaca, Vendorly senior vice president, said in a press release.
About 30% of respondents claim to monitor and assess vendor performance on an annual basis.
