Major financial services companies operating across the UK and EU will need to review and update more than 7.5 million contracts in the next 12 months – including trading documents, key supplier agreements, loans and non-trading contracts – according to new analysis from Axiom, the leading global alternative legal services provider.
Brexit is a step change more complex than any other mass contract update the financial services industry has faced to date. More than 100 types of contracts will be impacted, and companies will need to consider dozens of European regulations (each with dozens or even hundreds of specific requirements) and local laws when making their changes. Banks, asset managers and insurers will need to make their contracts ready not just for business after Brexit, but also make sure they comply with MiFID II, AIFMD, the Solvency II Directive and more.
To help the industry meet this challenge, today Axiom is launching BrexitBridge, a flexible, modular solution that combines artificial intelligence (AI), business intelligence tools and legal expertise to expedite the review, revision and renegotiation of contracts on a large scale. Axiom is uniquely poised to help financial services companies prepare; the company handles over a million contracts per year. BrexitBridge leverages this experience and is purpose-built for the financial services industry, incorporating insights from Axiom’s work with the leading financial services companies – including the top 12 global banks – on major contracting changes ahead of regulations like Margin Reform for Uncleared Derivatives, GDPR and MiFID II.
BrexitBridge comprises three standardised modules that clients can use either on a standalone basis to address specific phases of a Brexit project, or in combination as an end-to-end contracting solution. The first module leverages AI and tailored data aggregation tools to organise existing contracts and customer data into remediation-ready information packages, eliminating weeks of effort and saving millions of pounds.
Next, financial institutions can utilise BrexitBridge’s interpretation module to unlock insight into the risks, obstacles, opportunities and trends within a contract portfolio. In this module, Axiom’s proprietary technology and process convert unstructured contract text into structured data, which clients can access through a dynamic business intelligence dashboard.
Finally, once clients are ready to begin amending contracts, they can leverage BrexitBridge’s remediation module, an end-to-end outreach, drafting and negotiation platform. In addition to automating functions like document generation and large-scale counterparty outreach, it enables stakeholders to track workflows, see the status of contracts in the renegotiation process and access key management insights. As a result, financial institutions can better assess progress, identify any risks and revise their strategy in real-time as remediation efforts proceed. This platform can be delivered as a standalone solution or alongside partner offerings.