Technology is evolving at an extraordinary pace, driving historic changes in consumer behavior and expectations. These changes are predicted to accelerate even more over the coming years as preferences toward electronic channels increase and emerging technologies disrupt current business models and services.
To remain competitive, many financial institutions are forming partnerships with fintech companies or are acquiring specialty start-up firms to collaborate on technology. This calls for rigorous, comprehensive third-party risk management. This paper summarizes key elements of an effective third-party risk management lifecycle and how to manage the elements of an R&D process adapted for innovation to support and streamline growth and adopt new technology.