Wednesday, May 22, 2024

Understanding the Difference Between Strategic Member, Endorsed Vendor

During the course of the year we occasionally get asked from bankers what the difference is between an OBA Strategic Member and an OBA Endorsed Vendor.

OBA Strategic Memberships are typically held by accounting firms, consultants, vendors, insurance companies, out-of-state commercial banks, legal firms and other companies that directly provide services or products to OBA member banks. To become a Strategic Member, the company must complete an application form and be approved by the OBA Board of Directors. All Strategic Members are invited and encouraged to attend OBA functions throughout the year.

OBA Endorsed Vendors are a select group of providers that have entered into a written contract with the OBA. Endorsement by the OBA means a product or service has been thoroughly investigated by the OBA and satisfies an identifiable need. The product or service to be offered must be made available at terms, prices and/or conditions more advantageous to OBA members than would otherwise be available without the OBA endorsement.

As set out in the contract, the OBA will receive a certain percentage of revenue earned on an endorsement. This revenue is used to help off-set the costs of the Fraud, Legal/Compliance and Government Relations departments. On an annual basis, the OBA will review the performance of the vendor against the criteria used in originally selecting the product or service. Contracts will only be renewed if the OBA is satisfied that those criteria and other factors are still being met.

Currently we have 126 Strategic Members and 15 Endorsed Vendors. We are grateful to these providers for the services they offer to OBA member banks. These providers are listed here.

If your bank works with a vendor and you think they would be a good fit for the OBA, please let us know.