Many banks begin their contract management transformation within their procurement departments, focusing on third-party supplier agreements. Without proper visibility into supplier contracts, banks can inadvertently take on risk and experience margin erosion due to supplier underperformance. In fact, World Commerce & Contracting and Deloitte estimate that, on average, 8.9% of a contract’s value is lost due to missed obligations.

Scaled across thousands of supplier contracts, that’s a massive drag on performance. Contract intelligence addresses these challenges by centralizing supplier contracts, structuring the contract data, and enabling insights. Prior to contract signature, banks can ensure that contract terms are optimized and comply with their standards. Post-signature, banks can better govern the ongoing third-party relationship, ensure obligations are known, milestones are met, and suppliers are adhering to requirements that reduce risk.