Golden Contract Coalition for community banks bids to take on IT vendors

A new organisation is inviting US community banks and credit unions to band together in a bid to level the playing field when it comes to negotiating deals with their core and IT vendors.

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Golden Contract Coalition for community banks bids to take on IT vendors

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The Golden Contract Coalition (GCC) argues that smaller financial institutions have struggled for decades under the "oppressive weight of the core vendor goliaths" such as Fiserv, FIS and Jack Henry & Associates.

By pooling their bargaining power, the coalition says its members will be able to challenge the vendors and take on underperforming IT functionality, unenforceable service-level agreements, unfavorable contract terms and overpriced, one-sided deals.

Aaron Silva, GCC founder, says: "The vendors and the banks need each other, but there has to be a fair balance established. We are trying to achieve this through the creation of the Golden Contract."

The so-called 'golden contract' promises to strip excessive legalese and self-serving conditions from core and IT agreements and pricing, and dictates the master commercial terms and legal conditions by which providers must abide.

Silva is the CEO of Paladin fs, a consultancy that offers banks "hired guns" that work to get better IT deals. Law firm Pillsbury Winthrop Shaw Pittman LLP is also backing the new effort.

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Comments: (1)

A Finextra member 

In my mind GCC stands for Gulf Co-operation Council, a group of six countries in the Arabia Gulf, including Saudi Arabia & Kuwait. The GCC has existed for at least 40 years and is well known to anyone visiting the Gulf. Perhaps an alternative acronym might be appropriate.

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