Service Level Agreement Sample for Banks

SERVICE LEVEL AGREEMENT (SLA)

THIS SERVICE LEVEL AGREEMENT (the "Agreement") is entered into this [Day] day of [Month], [Year] (the "Effective Date"), by and between:

SERVICE PROVIDER: [Company Name], a corporation organized and existing under the laws of [Jurisdiction], with its principal place of business located at [Full Address] (hereinafter referred to as the "Provider"),

AND

BANK: [Bank Name], a financial institution organized and existing under the laws of [Jurisdiction], with its principal place of business located at [Full Address] (hereinafter referred to as the "Bank").

The Provider and the Bank may be referred to individually as a "Party" and collectively as the "Parties."

---

1. PURPOSE AND SCOPE

The purpose of this Agreement is to define the service standards, performance metrics, and responsibilities governing the provision of [Specify Services, e.g., IT Infrastructure, Payment Processing, Security Services] provided by the Provider to the Bank.

2. SERVICE AVAILABILITY AND UPTIME

The Provider guarantees a Monthly Uptime Percentage of [e.g., 99.99%] for the services described in Exhibit A.

• Excluded Downtime: Downtime caused by force majeure, scheduled maintenance (with [Number] hours advance notice), or Bank-side infrastructure failure shall not be counted against the uptime commitment.

3. PERFORMANCE METRICS (KPIs)

The Provider shall adhere to the following Service Levels:

4. INCIDENT MANAGEMENT AND ESCALATION

In the event of a service degradation or breach, the Provider shall follow the protocol below:

1. Notification: The Bank must be notified via [Email/Phone/Portal] within [Number] minutes of incident identification.
2. Escalation Path:
   • Level 1: [Name/Role], [Contact Info]
   • Level 2: [Name/Role], [Contact Info]
   • Level 3: [Name/Role], [Contact Info]

5. SECURITY AND COMPLIANCE

Given the nature of the Bank’s business, the Provider warrants strict adherence to:

• Data Protection: Compliance with [Regulation Name, e.g., GDPR, CCPA, GLBA].
• Audit Rights: The Bank reserves the right to conduct, or appoint a third party to conduct, an annual audit of the Provider’s relevant systems and security controls upon [Number] days’ written notice.

6. TERM AND TERMINATION

• Term: This Agreement shall remain in effect for a period of [Number] years/months.
• Termination for Cause: Either Party may terminate this Agreement immediately upon written notice if the other Party commits a material breach that remains uncured for [Number] days.
• Termination for Convenience: The Bank may terminate this Agreement with [Number] days’ prior written notice.

7. LIMITATION OF LIABILITY

Except for breaches of confidentiality or gross negligence, the total liability of either Party under this Agreement shall not exceed [Dollar Amount] or the total fees paid in the [Number] months preceding the event giving rise to the claim.

8. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of [State/Country], without regard to its conflict of law principles.

---

SIGNATURES

IN WITNESS WHEREOF, the Parties have caused this Service Level Agreement to be executed by their duly authorized representatives as of the date first written above.

FOR THE PROVIDER:

Signature: __________________________ Name: [Name] Title: [Title] Date: __________________________

FOR THE BANK:

Signature: __________________________ Name: [Name] Title: [Title] Date: __________________________