Financial services document management : strategic alignment

Enhancing data governance with document management

Data governance in financial services encompasses the overall management of the availability, usability, integrity, and security of the data employed. A robust Document Management solution facilitates these aspects by providing structured processes and technologies to manage financial documents and records efficiently.

Centralised data storage

DMS solutions consolidate data into a centralised repository, making it easier to manage, access, and protect. This centralisation is crucial for financial institutions where data sprawls across multiple departments and systems. Often, data can be stored locally or in Outlook making it challenging to oversee and audit. It also helps to ensure consistent data classification, retention, and access control policies to facilitate regulatory compliance and data integrity.

In addition, centralising data storage supports collaboration within the legal team, with internal clients, and external stakeholders. Streamlining collaboration provides great time savings at all stages of the legal process and therefore can easily demonstrate a financial ROI.

Access control and audit trails

To maintain data integrity and confidentiality, Document Management Systems offers advanced access control settings, such as iManage's Security Policy Manager, that restrict data access based on user roles and responsibilities. Audit trails further enhance governance by logging all document-related activities, thereby ensuring transparency and aiding in regulatory audits.

Compliance with financial regulations

The Financial Sector is among the most heavily regulated industries globally, with regulations like GDPR, MiFID II, and Basel III imposing specific documentation and data management requirements. DMS systems are inherently designed to aid compliance requirements through several features:

Enhanced document security

With features such as encryption and secure document sharing, document management helps protect sensitive information from unauthorised access and data breaches, which are critical compliance considerations.

The iManage security model provides a flexible way to manage security across workspaces, containers, and documents with detailed security settings for each item. This model allows precise control over access, enabling specific permissions for users or groups. For example, an editor group can be granted document editing rights while others are restricted from viewing due to conflicts of interest. Key features include Security Policy Manager access limitations, default security, access permissions, library and global role restrictions, and conflict resolution, resulting in effective security.

Document discovery readiness

In the event of legal actions or audits, financial institutions need to retrieve relevant information quickly. DMS solutions store documents in a central structured repository, therefore enhance document discovery capabilities by allowing firms to search and retrieve relevant documents efficiently.

Improving operational Efficiency

Operational efficiency in financial services can significantly benefit from an effective DMS. By automating routine document and information management tasks, DMS allows financial professionals to focus on higher-value activities, such as customer service and strategic decision-making. In fact, the recent Forrester report: The Total Economic Impact of iManage found that legal professionals saved 7 minutes per document and email search, equating to - on average - 240 hours annually.

"7 minutes saved per document and email search, saving on average 240 hours annually"

Streamlined document processes

DMS can support the automation of various document processes, often with the addition of third party integrations, such as indexing, storage and retrieval, streamlining workflows, and minimising time spent on manual document handling.

In the case of iManage, it allows users to easily structure stored data. When a user creates a workspace, they are prompted to enter a name for the workspace. The folder and subfolder names are defined initially by the workspace template. The template can also define a prefix or suffix for the workspace name, and optionally for any folders or subfolders created within it. If a user creates a new workspace that includes a prefix or suffix to the name, the user does not need to manually enter a name. The prefix or suffix alone is sufficient to create the workspace.

DMS integration with other systems

To maximise efficiency, modern DMS can integrate seamlessly with other business critical legal tech solutions used in Financial Services. 

• CoFlo: Extend and enhance a DMS with matter management capabilities. Quickly and easily kick-off a matter by accessing the Matter Creation Smart Form from your DMS in your browser.
• Lawcadia: Matter intake and triage provides intelligent, streamlined and automated workflows between your internal clients, in-house legal department, and even your external law firms.
• Sysero: Help to keep on top of your KYC requirements with automated workflows to streamline the client intake process and implement a better way to capture crucial client details.
• Docusign: Docusign eSignature is trusted by hundreds of millions of users world-wide and meets electronic signature regulations, including eIDAS.

See our full range of Financial Services legal tech solutions

Data mobility and remote access

Whilst Document Management Systems can be implemented on-premises on in the cloud, there are many benefits to being the cloud:

• Reduced Total Cost of Ownership (TCO): Cloud-based DMS eliminates the need for extensive on-premise hardware, such as servers and storage systems, reducing the capital expenses and maintenance costs associated with physical infrastructure.
• Scalability: Cloud-based DMS solutions are highly scalable. They can easily accommodate growing amounts of data and an increasing number of users without the need for significant hardware upgrades. Businesses can adjust their storage needs and system capabilities as their requirements change.
• Accessibility: Cloud-based systems allow users to access documents from anywhere, at any time, as long as they have internet access. This is particularly beneficial for remote teams or organisations with multiple locations, enhancing flexibility and enabling collaboration across geographies.

Supporting Business Growth and Innovation

Ultimately, the strategic alignment through DMS not only supports current operational needs but also drives business growth and innovation. With robust data management and process efficiencies, financial institutions can better respond to market changes and customer needs.

Improved data management and analytics capabilities mean DMS can provide financial institutions with insights that inform risk management, customer segmentation, and other strategic decisions. Scalability is also a crucial factor. As financial services firms grow, so do their data and document management needs. DMS solutions designed with scalability in mind can grow with the institution, supporting new business lines and expansion without compromising performance or security.

In conclusion, for financial services firms, investing in a robust DMS is not just about managing documents efficiently—it’s about transforming document management into a strategic asset that aligns IT infrastructure with business goals. This strategic alignment is crucial for maintaining competitive advantage in the dynamic financial services landscape, fostering compliance, operational efficiency, and paving the way for innovation and growth.

Visit our Financial Services page for more details on legal tech solutions

See also:

• Securing Sensitive Financial Data with Robust DMS Features
• Demystifying the CLM process for Financial Services

FAQs

Why and how is document management important for a financial institution?

Document management is crucial for financial institutions as it ensures efficient handling of vast amounts of sensitive data, supports compliance and auditing, and enhances operational efficiency. A robust Document Management System (DMS) such as iManage aids indexing, storage, and retrieval of documents and emails, reduces errors, secures data against breaches, and streamlines workflows, allowing for better resource allocation towards customer service and strategic initiatives.