Banking and financial institutions that have already experienced the benefits of contract lifecycle management software have 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 view mobile banking apps as benefits; they see these services as a basic necessity.
According to a recent survey, 57% of Americans said online banking offered a level of convenience they couldn’t get at physical locations. Online banking is a trend that is gaining popularity all over the world. Digitizing every step of banking operations is key to successful relationships with customers, suppliers and partners.
To keep pace, banks must also leverage technology in contract lifecycle management (CLM), enabling a better user experience for their customers. 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 several ways. In particular, these systems promote data security, enable instant loan processing and promote collaboration between departments.
Guarantee banking secrecy
Banking is an industry with very strict data security and compliance requirements, which is why many banks are hesitant to embrace digitalization. However, the traditional, manual way of dealing with contracts is even more prone to data leaks and compromise compared to digital.
Contract management software ensures that all data is encrypted and securely stored in a single source of truth, where it is accessible only to authorized users. For example, at AXDRAFT, we use bank-grade AES-256 encryption for all data, which adheres to industry-wide security and compliance protocols and minimizes data breaches.
Instant payment experience for loans
Contract management software streamlines the traditionally complicated and time-consuming loan granting process due to the multiple steps involved. CLM software stores customer history, along with all required documents, and automates the process.
CLM systems provide a rich opportunity to customize loans for each customer based on their account history and needs. This promotes a better customer experience, and customer satisfaction translates into greater loyalty.
Seamless online collaboration
Since contract management software for banks speeds up multiple processes within the organization, cross-departmental collaboration on documents is easier and more efficient. The CLM system is a single source of truth, where customer data and documents are stored for purchasing transparency and regulatory compliance across all branches.
Since customers don’t have to create an account in person and documents can stay on the CLM platform until the job is done, banking representatives can process more contracts lightning-fast. Additionally, they have a powerful tool to leverage personalized customer service and deliver the digital experience their customers expect.
Benefits of Contract Management Systems in Financial Services
Maintaining a productive contract management process remains a challenge for many financial institutions. However, CLM software can ease their pain due to its multiple benefits for automating contract management.
Choose the right supplier
Contract management software gives financial institutions the bandwidth to choose the right vendor by formalizing and speeding up the contracting process. The following software features will help organizations maintain healthy and efficient vendor management:
- negotiations of prices and contractual conditions.
- properly complete the due diligence.
- agree deliverables and KPIs to support the business strategy.
A unified repository for all vendor data, communication drafts, and document templates will ensure that the organization manages its vendor relationships in a secure and cost-effective manner.
Maximize performance and streamline strategic work
Contract management software helps optimize financial services company business performance and frees employees from routine operations, giving them more time and motivation for strategic work. The automated reports that the system generates based on the available data will provide business users with insight into the performance of each contract and help them make effective data-driven decisions.
Security and compliance standards in the banking and financial services industries are extremely high. Contract management software allows companies in these industries to securely store sensitive data and confidential documents, limiting access to unauthorized users.
Additionally, credible CLM platforms with industry-grade data protection and encryption protocols provide detailed audit trails and contract version changes and identify business users responsible for key elements. actions and KPIs.
Reduce risk and increase productivity
Because CLM software automatically performs routine manual tasks, such as recurring reports, which are typically the most time-consuming for employees, finance organizations benefit from improved accuracy and reduced risk in processing contracts to long term.
Business users will no longer lack contract visibility because complete data is available in a single source of truth. This prevents them from losing track of contracts in the daily document flow and helps them manage complex contract lifecycles efficiently.
Improve communication and collaboration
The more effectively your organization manages contracts, the more closely business users from different departments work together. A CLM system can streamline operations at every stage of the contract management lifecycle, shortening the approval cycle. It is also easier for them to identify the critical KPIs for each department and to respect them in the long term.
Banking and financial institutions that have already experienced the benefits of contract lifecycle management software have increased the availability and flexibility of their services. CLM is a boon for companies forced to spend most of their time on manual and time-consuming tasks since the software replaces them with error-free automated processes.
At AXDRAFT, we are happy to provide proven solutions for CLM and bespoke contract automation best practices that will effectively cover your offline banking routine and ensure a successful online presence. Book a demo to see how our system can benefit your financial business.