Libor

Blazing a path through the LIBOR transition

How streamlining its contract management helped this global investment bank power ahead on the LIBOR transition and significantly reduce costs.

client stories | financial services

Challenge | Approach | Outcome

Taking a backseat approach isn’t part of the genetic makeup for leading banking and financial institutions. Those leading the charge are in the driver’s seat, steering swift decisions that proactively help their clients and shareholders thrive. So it was no surprise when our client, a global investment bank, wanted to pave the way through the impending transition away from LIBOR (the London Interbank Offered Rate) with a smart, enterprise-wide solution.

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Revving up contract management—beyond LIBOR Effective enterprise contract management might sound like a basic operation, but when organizations do it well, the visibility they gain into their contract population enables them to react more quickly to business problems. Not only can companies identify key contracts faster, they can better facilitate the enforcement of their contractual rights, renegotiate contracts, and identify potential areas of lost revenue or stranded costs.

The transition away from LIBOR is clearly a high-stakes project for banking and financial institutions. But each organization is unique. Although our client could have seen the challenges as roadblocks, they were confident that we could help them get the job done using our dTrax technology. dTrax is Deloitte's proprietary AI-enabled contract life cycle management tool that combines natural language processing with contract generation, enabling clients to streamline their contract management, unlock the power of their contract data, and make better decisions about potential speedbumps around the corner.

Technology-fueled horsepower

The first stop on the journey included an assessment of our client’s specific needs and existing infrastructure. Once we had a clear roadmap, we configured dTrax to connect with our client’s other systems, with the objectives of streamlining their contract management process, consolidating their agreements in one easy-to-navigate system, and increasing the efficiency of their legal team. By using the analytics generated by dTrax, our client’s in-house counsel can make more timely and better informed strategic decisions, driving greater impact across the organization.

Our client is speeding ahead with an improved business-as-usual operation for contract digitization and standardization. And they’ve already seen big results: Our dTrax tool and related services have helped our client reduce man hours and cut the costs of their contract management by more than 40 percent. But dTrax isn’t just a one-and-done implementation. It’s an agile technology that is easily enhanced to keep up with the pace of technology and our clients’ evolving business needs. So if other contract management challenges arise down the road, our client will be better positioned to address it much more efficiently, with lower costs, while staying on course.

Pedal to the metal with zero interruptions

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Challenge | Approach | Outcome

CHALLENGE

Approach

Outcome

A global bank needed a comprehensive contract management solution to address key regulatory changes and the transition away from LIBOR.

We used our proprietary contract life cycle management tool, dTrax, to repaper all contracts.

An enterprise-wide contract management solution delivered ahead of the LIBOR decommissioning schedule to establish their new business-as-usual.

If you work in the banking and financial industry, you know that LIBOR underpins contracts affecting banks, asset managers, insurers, and corporations. These contracts total an estimated $350 trillion on a gross notional basis. As a result of LIBOR being phased out, they will all need an overhaul by the end of 2021. So, you can understand why our client wanted to get ahead of this transition and was looking for a clear roadmap to help manage their contracts beyond the change.

Facing several key challenges related to their contract management, our client knew that a combination of off-the-shelf technologies wouldn’t suffice. Instead, they wanted a solution powered by artificial intelligence (AI) that would help them dramatically increase efficiency and visibility and scale with their business. After our client learned about our dTrax tool, they asked us to act as a co-pilot for their transformation. Here’s how we helped them gear up for the change.

Bryan Foster bfoster@deloitte.com Principal Deloitte Risk & Financial Advisory

Joseph Mendel jmendel@deloitte.com Senior Manager Deloitte Risk & Financial Advisory

1. https://www2.deloitte.com/content/dam/Deloitte/uk/Documents/financial-services/deloitte-uk-libor-transition-ibor-benchmark-report-digital.pdf