Maintaining your leverage in vendor relationships
Thinking about tech trends in terms of ‘bottom-line boosters,’ ‘tech to review’ or ‘roadblocks to progress’ can help credit unions be in a better position to negotiate with their providers.
There are always lots of articles and blogs describing the latest top industry trends and how credit unions might consider prioritizing their spend over the next 12 months to address them. But realistically, how many of us actually interpret these trends effectively enough to know the right call to action – especially in a world where technology drives change at increasingly mind-boggling rates?
Perhaps the biggest question to ask is not what to do in the face of these trends, but rather what trends have been missed or left unaddressed? With so many developments vying for our attention, it is understandable that things might go unnoticed. For example, there are contract negotiation and renewal trends that, when taken into account, can reveal significant opportunities for credit unions to save on key cost areas or generate new revenue. These opportunities are a direct result of the proliferation of technology and rapid rate of change already mentioned.
One of the trends is an increase in the number of vendors that credit unions must assess when considering an upgrade or replacement in a variety of areas. In addition, as new players enter the marketplace and competition with established providers becomes more intense, the contracts credit unions must evaluate are becoming more sophisticated and complex.