The true value of an association endorsement
Banking associations and credit union leagues across the country endorse financial service providers to connect their members with trusted product and service solutions. Their seal of approval adds credibility by signaling that the association has evaluated and recommended the provider to its members.
Here’s a general look at how the process works and what it means for financial institutions.
How associations vet and select vendor partners
The process for endorsing a provider or naming it a preferred provider varies by association. For the Community Bankers of Michigan, where SHAZAM® has been a preferred provider for debit card processing and ATM services for 15 years, it starts with mutual interest between the service provider and the association, along with positive feedback from association members.
The provider then goes through a detailed due diligence process to ensure it is financially sound, has the necessary security safeguards in place to protect sensitive information, and complies with federal and state regulations.
“From our perspective, the due diligence process is a comprehensive analysis of the business to not only ensure the business is in good standing, but also to ensure that they are a true fit in the community banking industry,” says Kate Angles, COO, Community Bankers of Michigan.
It’s a similar process for becoming a preferred provider for the Independent Community Bankers Association of New Mexico, where SHAZAM is the preferred ATM and debit card processor. To be considered an ICBA/NM preferred provider, a company must be an established associate member with a proven record of serving community banks. Applicants then submit detailed information about their financial stability, organizational structure and the value their services provide.
That application is reviewed by the association's Products and Services Committee, followed by a presentation to the committee. The committee must then recommend approval before final approval is granted by the ICBA/NM board of directors.
“SHAZAM consistently supports our association’s mission through sponsorship, education and advocacy efforts that strengthen community banks across New Mexico,” says Chris Moya, President and CEO, ICBA/NM. “It provides reliable, innovative payment and fraud prevention solutions that help our member banks better serve their customers. Its alignment with our values and genuine investment in our success makes SHAZAM an indispensable partner to both ICBA/NM and our members.”
Why endorsements matter for financial institutions
The focused engagement between a service provider and an association benefits financial institutions. Earning an association endorsement gives member financial institutions access to innovative payment solutions, expert insights and the support of a strong strategic partner.
“Because of our due diligence process, we’re able to tell our banks that we’ve already done the laborious work,” says Angles. “We’ve given them that head start in their decision-making process when looking for a new vendor, knowing that a CBM preferred provider has been vetted as an exceptional option for them to partner with.”
Becoming a preferred provider is not a set-it-and-forget-it process. Both CBM and ICBA/NM review their partners annually to ensure these vendors continue to exceed the standards they met during the initial vetting process.
“ICBA/NM continues to prefer SHAZAM because it exemplifies what it means to be a true partner to community banks,” says Moya. “It maintains a strong presence in New Mexico and across the country, providing reliable services while actively supporting our association’s mission.”
The power of partnership
SHAZAM makes it our business to advocate for community banks and credit unions. Like associations, SHAZAM works to ensure members receive the highest value from the products and services we provide. This mindset is rooted in our membership structure.
At SHAZAM, our members are the financial institution clients that apply for membership. These members have a voice and a say in the direction of our company. And because SHAZAM serves members, not shareholders, we are able to reinvest profits into new technology to better serve our members.
“SHAZAM’s mission closely aligns with the mission and goals of CBM,” says Angles. “And in an industry where some salespeople overpromise and the products and services underdeliver, it’s refreshing that SHAZAM does what it says in strengthening financial institutions.”
“The company’s member-owned structure, with community bankers serving on its board and advisory councils, reflects a deep alignment with the values and mission of community banking,” says Moya. “In addition, SHAZAM provides strong support to our association and actively contributes to promoting and advocating for the community banking industry. These qualities made SHAZAM an outstanding choice as an ICBA/NM preferred provider.”
SHAZAM’s endorsements and strategic alliances
Many organizations recognize SHAZAM’s commitment to community financial institutions. SHAZAM recently became a strategic partner with the Iowa Credit Union League, one of only three organizations with this distinction. SHAZAM also earned additional endorsements from the Community Bankers of Iowa and the Community Bankers Association of Oklahoma. SHAZAM also has been recognized as a top vendor by the Independent Bankers Association of Texas and the Community Bankers Association of Illinois.
These endorsements and honors aren’t handed out lightly. They are the result of constant commitment and a shared vision in service to state associations nationwide and their members.
Learn more about the state associations that recommend SHAZAM to their members.
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