With IBAT Services celebrating its 40th anniversary last year, it is important to pause and reflect on the process that IBAT employs in endorsing various providers.
The IBAT Endorsed Service Provider (ESP) designation is assigned by the association’s board following a thorough and extensive review process. The Services board has a healthy respect for due diligence, and the directors are not hesitant to ask the hard questions you would ask if the supplier were sitting across the desk soliciting your bank’s business. This adds the level of rigor and risk assessment that regulators expect in third-party vendor due diligence. Most importantly, every evaluation begins with the question, “What unique benefit will IBAT members receive through this endorsement that would not otherwise be available to them?”
There are stipulations that require thoughtful consideration, including the provider’s adherence to an annual financial commitment of marketing support and a minimum guarantee of revenue from the sale of the endorsed product.
The board believes that focusing on core products and services for endorsement is most beneficial, serving the majority of IBAT members by leveraging the purchasing power of community banks across Texas to negotiate IBAT-member-only benefits. The board retains IBAT Services staff to review the contracts that members would be offered by endorsed providers, monitor due diligence in line with regulatory guidelines and advise providers when legislation might affect their products or services. When needed, IBAT staff and outside accountants review financials for potential endorsements.
IBAT’s Services team is tireless, consistent and focused, taking tremendous pride in the integrity of the due diligence process. They work with each ESP to design unique programs that align with the company’s strategic marketing. The process is trusted and appreciated by IBAT members, who know that staff and volunteers have steadfastly maintained the high standards of each endorsement process.