When financial institutions undergo digital transformations, client-facing technologies are often considered first. But behind-the-scenes technology is just as important, if not more so. The technologies that underpin corporate legal departments (CLDs), for instance, can help financial services companies gain efficiencies and better tackle everything from regulatory reporting to spend management.
And yet, finding and implementing the right legal technology is no easy task, especially since financial institutions are faced with two seemingly contradictory realities:
- They need to do more with less as budgets shrink.
- They must stay up-to-speed with rapidly changing cybersecurity and compliance landscapes.
Effectively balancing these two needs requires carefully selecting the right legal technology partner. That means someone who not only understands technology and how it fits within a financial services ecosystem but is also familiar with regulatory and compliance issues.
Our new eBook, Selecting a Legaltech Partner for the Financial Sector, explains how CLDs can identify a legal technology partner prepared to support the unique needs of the finance sector. More specifically, the eBook covers both technological and strategic needs, including:
- Integrated workflow automation. Automation has many benefits. To start, it can boost productivity through flexible integrations and streamlined workflows. It can also reduce compliance-based risk, which is particularly important for financial services companies. Operating in a strict regulatory environment is a tremendous challenge. Inconsistent, manual processes are prone to human error, and even the smallest slip-up could increase the risk of noncompliance. With integrated workflow automation, risk is minimized, and efficiencies are gained.
- Real-time KPIs and predictive analytics. It’s also crucial that legal technology offers a clear picture of both current and future operations. The ability to collect real-time data on legal spend, operations, and vendors’ performance is non-negotiable for financial services organizations. CLDs need both dashboards for at-a-glance metrics and the ability to drill down to deeper analysis. Predictive analytics, meanwhile, uses historical data—including information derived from real invoices, firm performance metrics, and more—to estimate budget and cycle times. This can help with future planning and spend control.
- Technology expertise. Artificial intelligence is changing the way financial services CLDs manage their legal operations, from billing to outside counsel management. But instead of just looking for a particular AI-powered solution, CLDs should seek a partner with deep AI knowledge. This will allow them to take advantage of innovations as they occur.
- International expertise. The global reach of financial services is another challenge that companies must contend with. A good legaltech partner will have international experience, as everything from compliance to billing is more complicated when you’re crossing borders. Having a partner with global expertise can ensure compliance with everything from the General Data Protection Regulation (GDPR) to the EU Value-Added Tax (VAT) Directive’s requirements.
- An emphasis on cybersecurity. The financial services world is an attractive target for hackers; even the SEC is starting to call for tighter cybersecurity measures. As a result, financial services firms must be able to identify a partner with a deep understanding of their regulatory, business, and information security requirements. Technologies like data encryption and firewall technologies are good indicators, in addition to annual SOC 1 Type 2 and SOC 2 Type 2 audits.
By being diligent about choosing the right technology partner, CLDs within financial institutions will be well on their way to long-lasting digital transformation, supporting improved productivity, cybersecurity, compliance, and more. To learn more about how financial services companies can choose the right legal tech partner, download the eBook today.
