Stricter vendor regulation not ‘magic pill’, banks say

Third parties would still require oversight from banks, even if formally regulated

Outsourcing experts at banks say implementation of stricter regulatory standards on vendors would not affect how they manage their third-party relationships.

As largely unregulated startups enter the financial industry in growing numbers – in response to increased demand from banks for their services – regulators have begun to question whether vendors should fall under similar standards as the institutional clients they serve.

But greater regulation of third-party providers won’t reduce the bu