Effective contract management is crucial in the financial advice sector, where professionals handle sensitive client agreements and regulatory requirements daily. However, many firms still rely on outdated processes that lead to inefficiencies, compliance risks, and client frustration.
In this blog, we explore the key challenges financial advisers face when managing contracts, best practices for improving efficiency, and how digital solutions like Videosign can help streamline the process.
The Challenges of Contract Management in Financial Advice
Financial advisers work within a highly regulated environment, requiring precise documentation and a clear audit trail. Managing contracts manually or with disconnected systems often leads to issues such as:
1. Compliance Risks
Financial Conduct Authority (FCA) regulations require advisers to keep thorough records of client agreements, signed contracts, and any changes to financial plans. Paper-based or email-driven contract processes can result in lost documents, version control issues, and difficulty proving compliance in audits.
2. Inefficient Processes
Traditional contract management often involves printing, scanning, emailing, and chasing signatures. This slows down client onboarding, delays transactions, and takes advisers away from revenue-generating activities.
3. Poor Client Experience
Clients expect seamless digital interactions. Lengthy, paper-heavy processes can feel outdated and inconvenient, leading to delays and potential client dissatisfaction.
4. Security Concerns
Sensitive financial contracts require robust security measures. Sending documents via email or storing them in unencrypted locations can expose client data to cyber threats.
Best Practices for Contract Management
Modern financial advice firms are increasingly adopting digital-first approaches to contract management. Here are some best practices to enhance efficiency and compliance:
1. Standardise Contracts and Templates
Using pre-approved templates reduces the risk of errors, ensures consistency, and speeds up the drafting process. Many firms now use contract libraries within digital platforms for quick access and easy customisation.
2. Implement Secure Digital Signatures
E-signatures are legally recognised in the UK and can significantly cut down the time needed to complete agreements. Secure platforms ensure that signatures are verified, tamper-proof, and fully auditable.
3. Automate Document Tracking
Automating reminders for unsigned contracts and tracking document status prevents delays and eliminates the need for manual follow-ups. This also ensures that no contract falls through the cracks.
4. Maintain a Centralised, Secure Repository
A cloud-based contract management system enables financial advisers to store, access, and retrieve documents instantly. This is essential for regulatory compliance and audit readiness.
5. Integrate Contract Management with Other Systems
Linking contract management tools with customer relationship management (CRM) or financial planning software improves workflow efficiency. Advisers can pull client details directly into contracts, reducing duplication and errors. Videosign currently has integrations in place with intelliflo and Xplan, with more integrations coming very soon!
The Role of Digital Solutions in Contract Management
Technology has transformed contract management, making processes faster, more secure, and fully compliant with industry regulations.
Why Digital Contract Management?
- Speeds up client onboarding: Automated workflows reduce delays in signing agreements.
- Improves compliance: Digital audit trails ensure firms meet FCA record-keeping standards.
- Enhances client experience: Clients can review and sign contracts securely from anywhere, on any device.
- Reduces costs: Eliminates paper, printing, and storage expenses.
How Videosign Supports Financial Advisers
Videosign is a contract management platform designed to help financial advisers handle agreements more efficiently while maintaining full compliance. It enables:
- Secure digital signatures that meet legal standards.
- Remote witnessing for agreements requiring an additional layer of verification.
- Automated document storage and audit logs for easy retrieval and compliance reporting.
- Integration with financial planning tools to streamline workflows.
With Videosign, financial advisers can manage contracts with confidence, knowing that every document is secure, trackable, and legally robust.
Final Thoughts
Contract management in financial advice doesn’t have to be a burden. By adopting digital solutions, firms can reduce risk, enhance efficiency, and deliver a smoother client experience. As regulatory requirements evolve, staying ahead with smart contract management tools will be key to success.
If you’re looking to modernise your contract process, why not explore how Videosign can help? Book a demo today to see it in action.
