Various industries such as banking, insurance, real estate, private equity, stockbroking, and venture capital make up the financial industry – all of which keep businesses of every sector seamlessly operating daily. Given the high-risk and high-value nature of the contracts they manage, the need for adherence to a variety of compliance regulations, and a critical necessity for contract security and accessibility, BFSI organizations are encouraged to leverage cutting-edge AI software for efficient contract generation, next-level security and visibility, and a holistic and unified compliance management system.
Finance Contract Data Extraction & Mapping
Finance or BFSI organizations can reduce the time it takes to enter new contracts in their system with artificial intelliegnce. They can identify key data like locations, dates, monetary values, emails, phone numbers, counterparties, and more - and that data can be turned into metadata, which is easily manageable, searchable, and reportable. Don’t waste time manually importing field data when contract intelligence can do that for you. BFSI-sector organizations can particularly leverage the extraction of sector-specific metadata, such as:
- Basel III, Dodd-Frank, GDPR, and AML requirements.
- confidentiality and data protection clauses.
- risk allocation and management information (e.g. market risk, credit risk, operational risk).
- financial terms (schedule of payments, interest rates, penalties for late payment, etc.)
- operational information.
- these sector-specific metadata and more!
Auto-Redlining for Finance Contracts
AI (artificial intelligence) and ML (machine learning) are becoming pivotal in BFSI contract management. These technologies are employed to assist in contract authoring contract negotiations. AI-enhanced systems can analyze contract data to identify potential risks and opportunities, thus accelerating the review process and improving decision-making.
With auto-redlining in finance contract management AI, users can automate the inclusion of clauses from their organization's approved clause library - virtually ensuring that favorable clause language is included. Organizations managing finance contracts can count on having preferred language redlined in favor of unapproved clause positioning for:
- regulatory compliance clauses.
- confidentiality and data protection clauses.
- audit and inspection clauses.
- force majeure clauses.
- indemnities.
- these BFSI-aligned clauses and myriad others.
Generative AI for Financial Contract Management
BFSI organizations can take advantage of smarter contracts with generative AI and other helpful functionality to streamline financial contracts processes.
Users can enjoy a helpful and engaging in-system chatbot with generative artificial intelligence powered by (such as VISDOM+, powered by OpenAI and VISDOM AI). They can ask questions about financial data and language and generate the BFSI clauses mentioned above, among other things.
Users can also leverage advanced contract risk assessment and sentiment scoring with generative AI. This functionality is perfect for BSFI organizations managing financial contracts - since there is such a focus on minimizing risk with a focus on compliance and ESG.
BFSI Compliance Management
BFSI contract compliance can present difficulties to organizations in the sector. Lackluster management of a massive volume of high-value and high-risk contracts that need to meet international, federal, state, and local compliance requirements may leave BFSI organizations with fees, missed deadlines, and failure adhere to regulations.
Secure contract management software allows users to efficiently and effectively report and audit complex financial data while adhering to the Sarbanes Oxley Act (SOX). Leading AI-based solutions can generate integrated OFAC screening and Dun and Bradstreet results in basically an instant. With a visually engaging risk assessment matrix, financial sector organizations can plot and map risk and risk exposure related to payment terms, clauses, and more.
Tracking & Reporting Finance Contract Data
The BFSI sector needs contract data security due to the nature of working with sensitive customer data as privacy regulations continuously increase on the international, federal, state, and local levels. Poor contract visibility due to the absence of centralized, digital storage across locations and departments makes it nearly impossible for BFSI organizations to keep track of corporate contracts and documents across business units. A consolidated contract and document repository system is instrumental in contract management success in the BFSI sector.
AI-based financial contract management software can allow teams to centrally store contracts and related documents alongside financial transaction details such as income amounts, expense amounts, transaction dates, account codes, GL codes, transaction types, and invoices.
AI-powered finance contract management software also provides users with a financial summary report for a contract. The report provides basic details regarding a given contract as well as key information at a glance, such as:
- the sum of income transactions.
- the sum of expenses.
- the total budget amount.
- the budget amount remaining.
- and the percentage of your budget that has been used.
It is clear to see that the financial/BFSI sector should entrust reliable contract management software for the optimization of their operations, reduction of inefficiencies, and improved compliance management. The entire financial contract management experience can be taken to the next level with CobbleStone’s CobbleStone Contract Insight® Enterprise software.
Leading insurance providers, banks, credit unions, capital management firms, investors, and other financial institutions trust CobbleStone’s source-to-contract suite. The daily struggle of high-level financial industry contract management is eased with Cloud/SaaS or deployed, mobile-friendly software that expedites and simplifies the contract lifecycle.
BFSI organizations can leverage CobbleStone Contract Insight’s document repository features, reports, audit trails, E-signatures, vendor management tools, electronic approvals, online negotiations, and more!
Learn how to become the financial contract manager of tomorrow today, with a free demo of CobbleStone Contract Insight!
