Legal tech is redefining the financial services sector and the way organizations communicate and interact with their clients and customers. Financial institutions are, by definition, “the” early adopters of all the new technologies that emerge in the market, embracing and taking the best out of them. Why? In order to reinvent and improve their business.
Technology is a key differential in the financial sector, and institutions such as banks can never turn their backs to it. Whether will it be to manage “old” clients and find out what they are looking for nowadays, to gain new ones and learn the best approach to them or to manage legal questions and challenges like compliance, tech solutions will always have a vital importance in the financial sector.
Legal Tech and FinTech: The finance sector has seen some incredible changes over the past few years and the new buzzword “FinTech” seems to be capturing many people’s imagination. FinTech means Financial technology, the technology and innovation applied to the financial sector.
Legal Tech – from simple legal document software to smart contracts with blockchain – is also changing the business and lawyers need to get up to speed.
For the banking sector, for instance, their legal departments may intervene in credit recovery processes, in addition to defending the company in various lawsuits and administrative proceedings. The credit recovery department works closely with the legal team and the operational resources department combining it all to achieve the best possible result.
The legal department is also responsible for compliance in its relations with customers, suppliers, partners, employees and the government. Everything must be compliant with the legal rules. And that’s when technological solutions come in…
Analyse data, analytic solutions
For instance, law departments are embracing analytics to help with several functions. Some (not many) years ago, experts had to extrapolate from experience to get a result; now, data describes the experience in a granular way. Not only because technology gives us the ability to extract data in a way that wasn’t possible in the past, but also because legal technology now encompasses machine learning algorithms and natural language processing to help with the work that must be done.
Legal Tech is the use of technology and innovation to squeeze out the time from legal services. Law departments are embracing artificial intelligence, machine learning algorithms and analytics to help with several functions.
According to a 2017 LexisNexis Survey, a significant number of industry members feel examining data can be beneficial. On the other hand, in 2018, 26% of legal departments questioned by a survey from HBR Consulting said they were planning to implement legal spend analytics in the next one to two years, up from 24% in 2017.
Legal technology solutions: a legal management software is imperative to enhance productivity of legal departments in the banking industry.
The fact is that legal departments have a lot to think about from management and administration of lawsuits and debt recovery, to management of legal files, including contracts, intervenient, court proceedings, due diligences, activities, guarantees, receipts and expenses.
Software in place
Having a Legal Management System (LMS) in place is imperative for the banking legal departments but not only… all legal teams have will gain from it.
The first thing to do is to identify what type of information would be helpful to track, based on the issues or areas they hope to address. From there, technology is here to help.
LMS is a software that provides powerful administration and tracking of litigation processes and debt collection. So, if you are asking what Legal Management System can do for your business, pay attention to the following ideas:
- With this solution, you will be able to centralize legal processes data and documents, also monitor and control the defaulted loan accounts and automate collection processes;
- Manage all the legal processes details and documents to be able to access them securely, anywhere;
- Automate and manage your entire activity workflow processes in one system or in an integrated manner (so all the information is secure).
By centralizing and integrating all the data from a case, LMS enables better communication between different company departments and legal firms or legal firms and their clients, tracking important deadlines, managing cases, documents, expenses and collections.
With software handling simpler processes and reviews, lawyers are freed up for more challenging jobs!
The legal technology sector is not new — even if it has taken a while to catch up with others –, and the legal industry is ripe for greater innovation and use of it. Seen as a key tool for attorneys, law firms, agencies, insolvency administrators and outsourced companies, the Legal Management System makes complicated business processes much easier to manage.
LMS does not only automate and assembles all the work related to different cases going on the legal department but also assures better management of dates, record and validation of all expenses and improves cash flow management by reducing collections and establishing good billing and financial management practices. Above all, it is an intelligent software solution for your Digital Transformation Processes.
A new version is on the way
Experts in low code and agile development, Blue Screen IT Solutions launches now LMS v.3, thinking on the international market and with a broader scope, ranging from the creation of files to the judicial sale of assets, including the management of auctioning, intervening in all litigation and / or credit recovery process management.
Legal Management System makes complicated business processes much easier to manage.
Working with a strong alarm component and service level agreements (SLA), the LMS v.3 also has a powerful configurable task engine to streamline and facilitate assignment of tasks between internal or external users.
Law Tech Innovation in 2020: AI-powered solutions, machine learning mechanisms improving faster data evaluation, management, security, and compliance. Also blockchain platforms focusing on better data transparency, exchange and identity management will be some of the expected legal tech trends.
LMS by Blue Screen IT Solutions is the tool your legal department needs to improve efficiency in the bank day-to-day work. Find out more about it by requesting a demo to our team.
This text was last updated in January 2020.