Top 9 Ways How Contract Lifecycle Management is Reinventing Banking Services
COVID-19 outbreak has become a wake-up call for the traditional banking system. As of April and the first weeks of May, branch traffic dropped by more than 30% compared to the same period in 2019. Accordingly, the digital transformation of banking processes has escalated to become a matter of survival for many banks.
These days, most people are expecting to see online services from banks. 57% of Americans state that online banking offers a level of convenience they can’t receive in-person. 44% agreed that technological improvements provided by banks make it easier to access their financial services. And yet, more often than not, Americans still choose to stop by brick-and-mortar locations personally when applying for elaborate services like loan granting (65%) or opening deposit accounts (58%). While the current online services are far from being user friendly, the figures won’t change. That won’t be any help to develop trust between banks and their customers.
57% of Americans state that online banking offers a level of convenience they can’t receive in-person.
Contract management software for banking is gaining considerable momentum. This software can help streamline client services and expectations and aid in revolutionizing the banking system.
How contract lifecycle management can bring banking services to a new level
Here is what a solid, enterprise-class banking contract management software can do for you.
1. Ensuring bank secrecy
One of the main reasons banks do not embrace the digitalization of business processes and contracts is data security concerns. As a result, multiple documents are stockpiling in cabinets, and the key data is distributed unevenly. In no way does this benefit contract visibility, but rather leads to a less than perfect customer service. In many cases, companies email documents for filling and signing, which is a collaboration channel that has been compromised multiple times.
Contract automation tools leverage data security to the maximum extent, ensuring your sensitive data does not leave the platform and stays intact. For instance, at AXDRAFT, we use bank-level AES-256 encryption for all data, templates, and final documents stored.
2. Instant checkout experience for loans
Granting loans has always been a multi-step process. Contract automation allows you to keep client history within your bank and address it at any point, making it easier to access loan collateral. Additionally, providing templates with dynamic clauses will enable you to better customize loan granting services. On top of that, banking contract management software lets you keep control over agreement compliance, meeting customer needs, and spotting any drawbacks in obligations. Such tools ensure your customers can receive loans more easily without leaving their homes.
Contract automation allows you to keep client history within your bank and address it at any point, making it easier to access loan collateral.
3. Seamless online collaboration
One of the main reasons people visit physical branches is simply because some of the services are not available online. To process a request, the bank representative should manually enter a customer’s personal data. The customer then needs to physically sign a pile of documents.
Legal automation tools, including AXDRAFT, accelerate and secure contract lifecycle management. Think of the ability to create e-signatures and how remarkably it simplifies document collaboration. Even more, clients don’t have to create an account, and documents can remain on the platform until the work is complete.
4. Lightning-fast processing of thousands of contracts
It may be necessary to issue bulk updates on agreements and notify the counteragents on changes made. Document management software saves time on revisiting every single document. Thanks to this tool, you can instantly update all necessary materials across all departments and geographies.
5. Ensuring procurement transparency
Procurement is a strategic asset of every bank performance, but also one that brings added risks. Contract management software for banks crystallizes contract compliance and accumulates all contract data in one place. It allows you to build synergy with budget operations, keep supply chains within eyesight, assess possible risks, and avoid financial damage.
6. Regulatory compliance across all branches
Regulatory compliance is an issue for many banks. Banking contract management software helps build a culture of compliance, thanks to standardizing compliance processes across documents. This can ensure employees follow protocol and avoid making critical errors that contradict regulatory requirements.
7. Proper personalization of customer service
Banks are known for traditional operational models that address all clients the same. Well, sad for them, but this approach no longer works. People are expecting on-the-spot interaction with banks through their preferable channel, which differs from customer to customer. This situation calls for flexible protocols, which are hardly possible without centralized contract lifecycle management. Streamlining contract management processes gives you more room for the flexibility to deliver custom solutions.
Banks are known for traditional operational models that address all clients the same. Yet these days people are expecting on-the-spot interaction through their preferable channel, which differs from customer to customer.
Document management software is a way to adjust to evolving customer needs. Thanks to advanced CLM solutions, the routine is no longer a roadblock to service customization. From now on, you can prepare and deliver documents faster with all possible deviations addressed, drill down into customer data, and capitalize on the service offering channels that clients prefer.
8. Increased availability of services
The golden rule of marketing states the fewer steps the client must take to perform the target action, the higher the chances they will ultimately complete it. Spoiler alert: people do not like complicated processes on their way to a service solution.
With contract automation, document batches are delivered to users without delay, leaving bank services more available and desirable. The ease of banking processes also impacts a person’s decision-making. As people tend to value their time and comfort, businesses willing to meet them halfway in this need are more appealing.
9. Building a dynamic culture
Banking contract management software is the landmark of business operations, manifesting the level of processes and the degree of innovation to both clients and employees. When a business runner emphasizes technology at the company level, everyone focuses more on the tasks which demand extra attention, rather than pushing through monotonous work that can be automated. On top of that, the customer base is getting younger and expects service innovation. Consider manual processes more of a carry-over from previous decades.
The bottom line
Contract lifecycle management is a blessing for banking processes. Legacy financial procedures will only continue to fade, while deliverables brought by digital transformation are the next big thing. Consider the presented opportunities and contact us without hesitation. At AXDRAFT, we’re happy to deliver custom-tailored contract automation best practices that will efficiently cover your offline banking routine and ensure a successful online presence.