Banks adopting vendor compliance platform to manage and monitor risk
G2Link (www.g2link.com), the first social trust and reputation software platform for banks is pleased to announce its membership in the New York Bankers Association.
“We are excited to be working with NYBA and its extended membership organization”, said Edward Sullivan, Founder and CEO G2Link. “The board at NYBA sees the value in our vendor compliance platform to help manage trust and reputation with their third party relationships and mitigate risk, in an ever increasing and expensive regulatory environment.”
We had the privilege last week of attending the 2014 New York Bankers Association Annual Meeting and Economic Forum in NYC. In addition to promoting the G2Link Trust and Reputation platform, one of the highlights was the Economic & Market Outlook panel discussion, hosted by Ron Insana; Senior Analyst and Commentator CNBC. Joining in the discussion with Ron was Jared Bernstein, Senior Fellow, Center on Budget and Policy Priorities and R. Glenn Hubbard, Dean, Columbia University Graduate School of Business. A diverse set of topics as you might imagine, but an overwhelmingly consistent theme throughout the discussion was how do we create better visibility across the financial landscape without the burden of unnecessary and unwarranted regulation? In essence, how can the Fed expect to get regulation right when they use lagging indicators to try and predict financial crisis? “With the Fed attempting regulation without visibility, they create risky policy and even dangerous approaches to regulations that miss the mark and stifle prosperity and innovation,” said Mr. Hubbard. He went onto to say, “if the Fed was so smart, how did it not spot the housing market bubble?”
Creating Trust and Lasting Reputation
Managing companies for success across a range of time frames – are requisite for achieving both performance and health – is one of the toughest challenges in business today. Turbulent economic conditions have concentrated the collective minds of many executives on pure survival. The fact that 10 of the largest 15 bankruptcies in history have occurred since 2001 is a strong deterrent to business building, playing up on its inherent risks.
Why is it shrouded in secrecy?
Why is it so expensive?
Why is the information I pay for not current?
Why do I feel like my business is always the last to know when a supplier is in trouble?
Why indeed. These questions, and others, were the same questions I asked myself prior to creating the original idea behind G2Link. What I quickly found out is that I was not alone in asking these very questions. The status quo for determining trust and reputation has not changed for decades. It’s outdated, inaccurate and expensive. Why has no one come with an alternative? No one had; so I did. It’s called G2Link.
Here are a few reasons why the industry has remained the same for years:
They make a ton of money on data. Selling data is a primary revenue source for the credit bureau industry, which had US revenue of roughly $4B in 2011, according to Consumer Financial Protection Bureau (CFPB). With data, comes power. Even though this data maybe largely inaccurate (one in five consumers has an error in their credit report), without a better methodology, we are beholden to its output – and pay big money for mis-information.
They have 200 million files on consumers. Mistakes will be made. In fact, in the last three months of 2011, 33% of credit disputes by consumers regarding an item in their file were due to errors on behalf of the credit reporting agency, according to the CFPB. In another report issued by the CFPB, only an average of 15% of these disputes was resolved by the credit agencies.
Just exactly what are you paying for? A primary reason for inaccuracy in the data is that there are actually many different “scores” that the credit bureaus are selling. The result being a score that could be “meaningful different” then the true credit score, which could result in an unfair determination of creditworthiness, or worse yet, a favorable rating when the business is going out of business.
So, what is a business to do? Use G2Link to understand and monitor in real time business performance. Business relationships are built around daily interactions between companies, suppliers and customers. Through social media based partner, vendor and supplier interactions, our algorithm uses this data to establish in real time a company’s ability to meet its obligations. By capturing these “smart crowd” interactions, G2Link has developed a software platform that measures and scores these interactions to monitor, track and predict business performance. Instead of pulling an outdated, expensive and inaccurate credit report, the team at G2Link has built a software platform that provides more timely, actionable and clearer visibility into a company’s business performance. Better insight, means better decisions. Since our journey began in February, 2012, we are now tracking over 88,000 companies and have over 5,000 users that are experiencing a better way to measure financial performance.
Stop asking why and join the B2B trust and business reputation revolution at G2Link!
Image courtesy of Stuart Miles / FreeDigitalPhotos.net
Banks and other financial institutions are under an increasing amount of risk as they balance their dependence on outside vendors to support their businesses, and the ever increasing need to minimize risk in a highly regulated environment. Or said more simply; financial institutions are being held accountable for the actions of their suppliers. G2Link has developed the first B2B trust and reputation platform to help these organizations gain visibility and insight into third party relationships and their business performance – quicker, more accurately, with less expense and clearer visibility.
Gartner’s 2013 Hype Cycle for Emerging Technologies Maps Out Evolving Relationship Between Humans and Machines
Gartner’s 2013 Hype Cycle Special Report provides strategists and planners with an assessment of the maturity, business benefit and future direction of more than 2,000 technologies, grouped into 98 areas. New Hype Cycles this year include content and social analytics, embedded software and systems, consumer market research, open banking, banking operations innovation, and information and communication technology (ICT) in Africa.
I recently re-read Stephen Covey’s “The Speed of Trust: The One Thing that Changes Everything,” and in light of our recent thinking on Trust and Reputation, I would like to emphasize a few points. First, that while Trust is important on a personal level, it is absolutely critical for business interactions. Second, Trust is not static. It can go up or down with the ebb and tide of normal business but it can be proactively managed and maintained.
Businesses have outsourced Trust. Rather than rely on on their own criteria businesses use services to help the determine the trustworthiness of other businesses. Will they pay on time? Will they provide good service? Are they helping or hurting my company’s compliance?
In some cases, this is a matter of scale, especially in the consumer market. Macy’s for instance couldn’t possibly have a deep enough conversation with every customer prior to purchase to get comfortable so they outsource that process to the likes of Visa, Mastercard or American Express.
Do you know about one of the most interesting G2Link features, our company profiles? G2Link has two types of profile pages – in-app and public for every company listed – and there are a few differences between the two types of pages.