Friction vs. Risk: A Panel Discussion on Why Supplier Onboarding Compliance Matters Now
Featuring J.P. Morgan, Nacha and PaymentWorks, the panel debated the merits of automation to solve for both friction and risk in managing your vendor file.
Social Engineering Fraud.
Business Email Compromise.
Payments Fraud Scams.
By any name, these frauds continue to target organizations of all sizes, with the epicenter being the vendor master file. This panel digs in on about friction and risk in vendor management with payment and ACH experts from J.P. Morgan, Nacha and PaymentWorks.
Featured Panelists & Key Takeaways:
- Joe Hussey, vice chair of payments at J.P. Morgan walked through why, precisely, organizations cannot wait for a ‘perfect time’ to take action on vendor data security
- Rob Unger, from Nacha, drilled down on why every exchange of information = an opportunity for fraud.
- Thayer Stewart, our CEO, predicted a future with businesses having ‘identity wallets’… and much discussion ensued!
Watch the Supplier Onboarding Compliance Panel Discussion
What You’ll Hear from the Panel Experts:
- Why organizations cannot wait for a “perfect time” — securing vendor data should begin now, not later.
- How every exchange of vendor information (banking updates, identity data, documentation) represents a potential fraud vector — and why compliance controls reduce that risk.
- Predictions for the future — including evolving approaches such as “identity wallets,” which may change how vendor identity and compliance are verified across systems.
Whether you’re a procurement manager, AP professional, or vendor-management lead, this panel highlights why rigorous supplier onboarding compliance is one of the few levers that significantly reduce risk without permanently sacrificing efficiency.
Why Supplier Onboarding Compliance Is Critical for Every Organization
Supplier onboarding isn’t just a procedural step. It’s a strategic moment — the first line of defense where compliance, identity verification, and data integrity can be enforced. When done right, it lays a foundation that protects payments, vendor relationships, and operational stability. When done badly, it creates fertile ground for fraud, mis-payments, and compliance failures.
Key risks tied to weak or manual onboarding:
- Inaccurate or incomplete vendor data — messy vendor records, duplicate entries, mismatched banking or tax information.
- Fraud, impersonation, or unauthorized banking-info changes — especially dangerous when onboarding relies on email, PDF forms, or unsecured methods.
- Compliance lapses — missing documentation, incomplete verification, or inconsistent records can cause regulatory or audit issues down the line.
- Operational inefficiency, delays, and poor supplier experience — redundant processes, miscommunication, and manual bottlenecks slow down onboarding and can damage vendor relationships.
Because onboarding is the gateway to all vendor interactions, compliance at this stage is non-negotiable if you want a safe, scalable vendor program.
How PaymentWorks & Experts Recommend Building Supplier Onboarding Compliance
From the panel discussion — and broader best-practice guidance — several themes emerge for strengthening supplier onboarding compliance:
1. Treat Onboarding as Compliance, Not Just Administration
Don’t view onboarding as a clerical task. Require identity verification, banking-info validation, documentation checks, and secure data handling for every supplier before they’re approved. This reduces risk and builds consistency.
2. Reduce Friction — But Not by Cutting Corners
While compliance can add steps, automation can significantly reduce friction. A compliant onboarding flow that’s automated — rather than manual spreadsheets, emails, and PDFs — ensures vendors provide accurate information, reduces back-and-forth, and speeds up approval without sacrificing due diligence.
3. Consolidate Vendor Data into a Single, Verified Master File
Avoid fragmented data across departments or systems. Maintain one central vendor master that holds verified, standardized data — name, identity, tax info, banking info, compliance documentation — so you never lose track of who you pay and why.
4. Enable Audit-Ready Vendor & Payment Records
Every action during onboarding — submissions, verifications, changes — should be logged, timestamped, and traceable. This supports compliance reviews, internal audits, and regulatory scrutiny while reducing risk of undetected changes or fraud.
5. Protect Vendor Data & Ensure Secure Communication
Avoid insecure methods like email attachments for sensitive vendor information. Use secure portals and encrypted data collection — reducing the risk of data leaks, fraud, or phishing-based payment diversion.
What You Can Achieve with Strong Supplier Onboarding Compliance
Adopting a compliance-first, automated approach to supplier onboarding delivers tangible benefits:
- Lower fraud and payment risk — verified vendor identity and banking info make impersonation or diversion far harder.
- Cleaner vendor data and fewer errors — standardized, validated vendor profiles reduce duplicates and inaccuracies.
- Faster, more predictable onboarding — automation reduces manual delays and enables smoother vendor enablement.
- Improved audit readiness and compliance posture — with full records and traceability, compliance and internal audits are simpler and more reliable.
- Better vendor relationships and trust — clear, consistent onboarding sets expectations and builds credibility with suppliers.
- Scalable vendor management practices — whether you manage dozens or thousands of suppliers, a compliance-driven onboarding program scales without losing control or increasing risk.
In short: when you prioritize supplier onboarding compliance, you transform onboarding from a weak link into a strategic strength.
Curious About Strengthening Supplier Onboarding Compliance? Download Our Solution Selection Guide
