Banking and financial institutions that have already experienced the advantages of contract lifecycle management software increased the availability and flexibility of their services.
After the pandemic, even the most conservative financial institutions were faced with the need to digitize their services. Consumers no longer see mobile banking apps as nice-to-haves; they consider these services a basic necessity.
According to a recent survey, 57% of Americans said online banking offered a level of convenience they couldn’t get at brick-and-mortar locations. Online banking is a trend gaining popularity across the globe. Digitizing every step of banking operations is a key to successful relationships with clients, vendors, and partners.
To keep up with the times, banks should also leverage technology in contract lifecycle management (CLM), enabling a better user experience for their clients. This article will take a closer look at the benefits of online contract management systems.
How is Contract Lifecycle Management Software Used in Banking?
The banking industry can benefit from CLM software in multiple ways. In particular, such systems promote data security, allow instant loan processing, and foster cross-department collaboration.
Ensuring Bank Secrecy
Banking is an industry with very tight demands for data security and compliance, which explains why many banks are reluctant to adopt digitalization. However, the traditional, manual way of processing contracts is even more prone to data leakages and compromising compared to digital.
Contract management software ensures all data is encrypted and securely stored in a single source of truth, where it can be accessed only by authorized users. For instance, at AXDRAFT, we use bank-level AES-256 encryption for all data, which meets industry-wide security and compliance protocols and minimizes data breaches.
Instant Checkout Experience for Loans
Contract management software streamlines the process of granting loans, which is traditionally complicated and prolonged because of the multiple steps involved. CLM software stores client history, along with all required documents, and automates the process.
CLM systems give a rich opportunity to customize loans for every client based on their account history and needs. This promotes a better customer experience, and the client’s satisfaction translates into higher loyalty.
Seamless Online Collaboration
Since contract management software for banks accelerates multiple processes within the organization, cross-department collaboration on the documents is easier and more efficient. The CLM system is a single source of truth, where client data and documents are stored for procurement transparency and regulatory compliance across all branches.
Since clients do not have to create an account in person and the documents can remain on the CLM platform until the work is complete, bank representatives can process more contracts in a lightning-fast manner. Besides, they get a powerful tool to tap into personalized customer service and provide the digital experience their clients expect.
Benefits of Contract Management Systems in Financial Services
Sustaining a productive contract management process remains a challenge for many financial institutions. However, CLM software may ease their pain because of its multiple benefits for automating contract management.
Choosing the Right Supplier
Contract management software gives financial institutions the bandwidth to choose the right supplier by formalizing and speeding up the contracting process. The following features of the software will help organizations maintain healthy and efficient supplier management:
- price and contractual terms negotiations.
- completing due diligence correctly.
- agreeing on deliverables and KPIs to support the business strategy.
Unified storage space for all supplier data, draft communication, and document templates will ensure the organization manages its relations with suppliers securely and cost-effectively.
Maximizing Performance and Streamlining Strategic Work
Contract management software helps maximize business performance in the financial services company and frees employees up from routine operations, giving them more time and motivation for strategic work. Automated reports that the system generates based on the available data will provide business users with insights into the performance of each contract and help them make effective data-driven decisions.
Security and compliance standards in banking and financial services industries are extremely high. Contract management software allows companies in these industries to store sensitive data and confidential documents securely, restricting access to unauthorized users.
Besides, credible CLM platforms with industry-wide data protection and encryption protocols provide detailed audit trails and version changes of the contracts and identify business users responsible for key actionable items and KPIs.
Reducing Risks and Increasing Productivity
Since CLM software automatically carries out routine manual tasks, like recurring reporting—usually the most time-consuming for employees—the financial organizations experience improved accuracy and reduced risks of dealing with contracts in the long run.
Business users will no longer lack visibility into contracts, as the comprehensive data is available in a single source of truth. This prevents them from losing track of contracts in the everyday document flow and helps them manage complex contract lifecycles efficiently.
Improving Communication and Collaboration
The more effectively your organization manages contracts, the closer business users in different departments collaborate. A CLM system can streamline operations at every stage of the contract management lifecycle, thus shortening the approval cycle. It is also easier for them to identify critical KPIs for every department and meet them over the long term.
Banking and financial institutions that have already experienced the advantages of contract lifecycle management software increased the availability and flexibility of their services. CLM is a blessing for businesses forced to spend most of their time on manual and time-consuming tasks since the software substitutes these with automated mistake-free processes.
At AXDRAFT, we are happy to deliver proven solutions for CLM and custom-tailored contract automation best practices that will efficiently cover your offline banking routine and ensure a successful online presence. Book a demo to explore how our system can benefit your financial business.