Digital contract management proved invaluable in resolving Savings Bank Group’s data security questions
80 percent of the business conducted by companies is based on contracts. However, contract management also includes huge risks, as up to one in five contracts can go missing according to an international survey. Security is therefore one of the central benefits to digital contract management.
Markus Niemi-Nikkola, Manager of Procurement and Partnerships at Savings Bank Groups, who are a long-standing player in the banking industry, where precision and security are needed, explains that Cloudia’s digital contract management system effectively facilitates the work of contract management.
“In the past, Savings Bank Group used online file storage and solutions based on scanning documents. While the contracts were devised and stored in an appropriate manner, making use of them was extremely inefficient,” Niemi-Nikkola explains.
“In the banking business, the significance of data security in contract management cannot be exaggerated.”
Niemi-Nikkola says that digital contract management has brought a new dimension to the work. It has sped up the processes and reduced human errors, as the contract information is always up to date and it is possible to look at the overall picture.
“In the banking business, the significance of data security in contract management cannot be exaggerated,” Niemi-Nikkola adds.
The precision of tracking events related to contracts is further improved by the fact that Cloudia’s electronic contract system records the version history. Before electronic contract management, the different versions got easily mixed up.
Contracts available for all who need them
Digital contract management also plays a key role in improving the availability of contract information. It reduces bottlenecks in the organization, as every contract can be found in one location and contract information is available to all responsible persons instead of only being accessible through a specific person’s email or computer.
According to Niemi-Nikkola, the problem with the previous directory-based online file storage system was that access rights could not be limited so that the person with the access rights could be prevented from seeing all contracts of the company. For this reason, availability had to be limited and contracts hidden manually, when necessary, which is time-consuming.
“I see a significant benefit in that contracts are always accessible and internal system access rights can be defined on a user-basis,” says Niemi-Nikkola.
Reduced errors and more time for productive work
Good contract management frees up more time for productive work. Thanks to automation, filling in contractual obligations, renewing contracts and monitoring what has been agreed is effortless.
“We can easily assess and compare the states of our contracts. Additionally, we can review whether the contract terms or contact details need to be renewed, altered or updated, for example. There are a lot of routine activities linked to contracts, the automatization of which has allowed us to free up time for doing other things,” says Niemi-Nikkola.
Signing electronically is quick and can be done from anywhere
Signing paper contracts and documents may take days, sometimes even weeks. During the mailing process, paper contracts may even go missing. With the pandemic, many companies realized the need to move to electronic signatures since they can be given quickly and reliably using electronic authentication, regardless of the location.
Contracts between multiple operators as a future trend
Next, Niemi-Nikkola’s team will be looking at Cloudia’s tendering application and contract negotiation opportunities, while also looking forward to what digital contract management will bring in the future.
“In the future, I am sure that contracts between multiple operators will be more common. When companies are partnering up with more parties, it will also be reflected in activities that have to do with contracts. I also believe that automation will yield more and more data from around the world regarding business partners and help find triggers thereof that are of a higher quality. Data about a contractor’s liabilities is a good example of automation used today.”
Read more about the benefits of efficient contract management.