As anyone who has a banking app on their phone can tell you, the digital transformation is well under way in the financial industry. Breakthroughs in financial technology have made it possible for bank customers to deposit a check, apply for loans, and transfer funds with little more than a swipe of the thumb.
These advents have accelerated the pace of business in the banking industry to previously unbelievable speeds, presenting huge opportunities, and major risk. Banks that properly embrace the digital transformation can expect to enjoy more and more customers accessing their products 24 hours a day. But a poorly executed transformation could leave banks either lagging behind competitors or, worse, in serious breach of government regulations and internal controls—exposing the institution to legal and financial risk.
Deeper Than Apps
This digital transformation will go far, far deeper than some flashy apps. It must be enterprise-wide, touching every facet of how financial institutions do business.
Hugo Nájera Alva, head of business development at BBVA Bancomer, recently noted to World Finance magazine that the banking industry “has always been willing to use new technologies in a bid to make its services more efficient. However, more recently, the speed and frequency with which new technologies continue to emerge have left the banking industry struggling to keep up.”
He went on to say that BBVA Bancomer is responding to this new reality by not just overhauling digital user experiences, but also “digitalizing all internal processes, which enables extremely fast and dynamic adaptability in an ever-changing environment.”
Contract Management Is Key
When it comes to a bank’s internal processes, few are as important—nor as often overlooked—as the management of contracts. Contracts are the foundation of all commerce, governing every dollar coming in and going out of an enterprise. Contracts are also vital to regulatory compliance and risk management, as they provide deep visibility into every aspect of an organization’s operation: Where it’s doing business, with whom, under what terms, and for what purpose.
This kind of visibility is especially valuable for the banking industry, where, along with the accelerated pace of business, organizations face extremely strict regulatory environments and compliance is closely monitored. Failing to track compliance carries heavy financial risk. To cite just one example, in 2015 alone four banks were each fined more than £100 million for breaching principles of U.K.’s Financial Conduct Authority.
Clearly, a lack of attention to risk and compliance can cost a fortune. Yet many organizations, including banks, continue to manage contracts in separate repositories, with contracts sitting in silos – either by geography, business function or contract type. As a result, contracting at many organizations holds back performance and limits visibility – just when the increased speed of global business demands greater velocity and agility, and the regulatory environment demands unprecedented compliance.
The Power of ICM
The cloud-based Icertis Contract Management (ICM) platform transforms contracts into strategic business assets, giving global enterprises powerful capabilities to maximize revenue, control costs, and manage risk. ICM allows enterprises to manage all contracts in a central repository, providing full visibility into contracts.
It provides secure mobile access making sure the people who need to see a contract can do so from anywhere with an internet connection. But it also features granular role-based controls, meaning only the appropriate personnel in an organization will access sensitive contract data.
To learn more about how ICM can help lead your enterprise’s digital transformation, download this guide to enterprise contract management software.