The FDIC sent a letter to banks outlining problems they see with the current way vendor contracts are done; the main sticking point is contracts do not accurately define who would be liable if a breach would occur; this comes at a time where banks and fintech firms are partnering more than ever before; American Banker reports from the letter, “Undefined and unclear key contract terms could contribute to ambiguity in financial institution rights and service provider responsibilities, and could increase the risk that technology service provider business disruptions or security incidents will impair financial institution operations.” Source.
