Typically, if your Financial Institution utilizes vendor provided and supported software, it has been delivered in Object Code form. Object code is a format that is not intelligible to humans. The Source Code has been retained by the vendor to protect its intellectual assets, unauthorized reproduction, and trade secrets, from their competitors. Access to this Source Code is required to enhance and support the software. Traditionally, the software provider and the financial institution went through the legal process and entered into an escrow agreement for the source code, on an exception basis. This approach has been expensive and often the vendor fails to provide updates to the escrowed source code, thus negating the protection the financial institution requires.
FRMS, as a trusted neutral third party, has software escrow agreements in place with many of the software providers that financial institutions utilize. These agreements allow the software vendors to easily add your financial institution as a Beneficiary to that agreement. The update process is automated, allowing the software vendor to transmit to FRMS the version updates of all the software being escrowed for the Beneficiaries. The Beneficiaries receive annual certification from FRMS, acknowledging the Financial Institution as a current Beneficiary to the Master Escrow Agreement with the name of the Software product and current version number on deposit with FRMS. This provides a low cost source code escrow service to the financial institution and provides the documentation you require to meet the regulatory requirements of FFIEC, OCC, and FDIC.
Having an Escrow agreement in place gives end-users the rights and access to the source code, designs, processes, or formula behind their business-critical material or applications in the event of supplier failure. It also provides suppliers with a way of reassuring clients of their stability.
FRMS simplifies the whole software escrow process for the financial institution. Your technology vendor simply deposits the source code with FRMS and registers your financial institution as a beneficiary. We do the rest!
- Contracts with your technology vendor
- Provides the Financial Institution with a deposit receipt (for your compliance file)
- FRMS protects the source code and updates
- Renews everything on an annual basis
- All for a low annual fee.