Overview
A rapidly growing digital lending fintech was preparing for a scheduled RBI supervisory review. While the core lending operations were strong, the vendor governance program was fragmented — documents scattered across teams, missing clauses in contracts, and no centralized view of vendor risk.
Using the Vendor360 Essentials Suite, the fintech could standardize evaluations, eliminate documentation gaps, and achieve complete audit readiness within just 14 days.
The Challenge
Despite operating at scale, the fintech faced several operational and compliance bottlenecks:
1. Scattered Vendor Documentation
- Contracts were stored across email threads, Google Drive folders, and individual laptops.
- Critical RBI-mandated documents were missing or outdated.
2. No Standardized Vendor Risk Framework
- Different teams rated vendors informally.
- No consistent scoring or RAG methodology existed.
3. Gaps in RBI Outsourcing Compliance
The team lacked a unified checklist aligned to:
- RBI IT Framework (2016)
- RBI Digital Lending Guidelines (2022)
- RBI Outsourcing Directions (2023)
- Data localization & BCP requirements
This created uncertainty before the review.
4. No Evidence Repository for Audit
While teams were doing work, no system existed to show proof, timelines, or review notes — a major audit weakness.
The Finology Nexus Solution
The company adopted the Vendor360 Essentials Suite to structure their entire vendor governance process.
Here's how we achieved audit readiness in 14 days:
🔹 Day 1–3: Centralized Vendor Intake & Risk Scoring
All vendor data was consolidated into a single intake sheet. The Vendor Health Scorecard (12-question RAG assessment) was applied across all critical vendors. Immediate risk visibility emerged — Red, Amber, and Green vendors clearly identified.
- ✓ 17 vendors categorized
- ✓ 3 Red vendors flagged for urgent remediation
- ✓ Standardized risk baseline established
🔹 Day 4–7: Contract & Clause-Level Review
We applied the Nexus Global Vendor Rigor Framework to evaluate all vendor agreements:
- Inspection & audit clauses
- Data localization terms
- Cybersecurity commitments
- SLA & uptime definitions
- Critical service categorization
- BCP/DR obligations
- ✓ 31 key clauses reviewed
- ✓ 7 compliance-critical gaps identified
- ✓ Recommendations drafted for renegotiation
🔹 Day 8–10: RBI Outsourcing Gap Checklist
A full cross-jurisdiction compliance run was performed:
- RBI 2023 Outsourcing Directions
- Cybersecurity Framework requirements
- Digital Lending Guidelines (DLG)
- Third-party risk requirements (risk ownership, reporting, escalation paths)
- ✓ 100% mapped to RBI instructions
- ✓ All missing documents listed
- ✓ Immediate remediation plan created
🔹 Day 11–14: Audit-Ready Evidence Pack Creation
We prepared complete and clean audit files:
- Consolidated vendor documentation pack
- RAG risk dashboard
- Vendor scoring sheets
- Contract gap reports
- Compliance tracker with expiry dates
- Quarterly review templates
- Audit-log-ready evidence folder
- ✓ Fully documented vendor governance program
- ✓ Evidence pack delivered for RBI inspection
- ✓ Internal teams aligned and confident
🎯 Final Impact
| Metric | Before | After |
|---|---|---|
| Documentation completeness | 62% | 100% |
| Clause compliance gaps | 7 critical gaps | 0 unresolved |
| Vendor risk visibility | None | Full RAG score across all vendors |
| Audit readiness | High risk | Ready in 14 days |
| Cross-team alignment | Low | High |
Key Success Factor
The Vendor360 Essentials Suite enabled the fintech to transform from a reactive compliance posture to a proactive governance framework, eliminating regulatory uncertainty and establishing a repeatable process for future audits.
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Why This Matters for Fintechs & NBFCs
Most digital lending companies underestimate the complexity of vendor governance — until RBI asks for:
- Vendor list
- Risk classification
- Contracts
- SLAs
- BCP tests
- Cybersecurity measures
- Monitoring evidence
With Vendor360 Essentials Suite, fintech teams can convert scattered processes into a structured, regulator-aligned program without enterprise software cost.