In recent years, more and more law firms and legal departments have shifted from manual to digital processes to reduce costs and get work done faster. LegalTech or legal technology refers to all the digital technologies that have been powering the digital transformation of the legal sector.
What processes can be optimized with the help of LegalTech?
Legal technology has been driving the digital transformation of law firms by optimizing time-consuming processes, such as:
- Case management: By automating case management, lawyers can reduce human errors, improve consistency, and boost efficiency. Digital case management tools enable lawyers to automate data entry, document creation, and task assignment. They also allow for better collaboration, increased visibility, and superior data security.
- Time-tracking & billing: Legal billing software is a game changer for law firms. It allows legal professionals to track billable hours, send out invoices automatically, and receive online payments, thus meeting their unique billing needs.
- KYC verification: All lawyers must conduct a KYC verification before entering into a business relationship with a client. However, traditional Know Your Customer processes can take a very long time to complete. By relying on KYC software, legal professionals can securely collect all the necessary documents, carry out guided risk assessments, and automatically retrieve client and UBO information.
- Calendaring: Legal calendaring tools help lawyers stay on top of their deadlines. Besides making it easier to schedule meetings and appointments, legal calendaring solutions can automatically calculate and update deadlines based on specific rules.
- Document management & signing: Cloud-based legal solutions enable lawyers to capture, edit, store, organize, and easily access legal documents digitally. But that’s not all. Legal software also provides rule-based document routing and digital signatures, which save valuable time and improve the client experience.
- Client management: With legal software, legal professionals can manage all client information in one place — from contact details and case details to relevant documents and tasks. Plus, you can send emails to clients directly from the platform.
What are the benefits of LegalTech?
LegalTech has positively impacted the legal sector, helping lawyers work more efficiently and provide frictionless experiences to their clients. Some of the main benefits of LegalTech are listed below.
More time to advise clients
Legal technology eliminates many of the manual tasks that lawyers have to perform on a regular basis, thus allowing them to spend more time providing legal advice to their clients.
Enhanced accuracy and consistency
With human errors out of the way, lawyers can be sure that the data they hold is accurate and up to date. Plus, all processes are carried out consistently thanks to the automation capabilities of digital solutions.
Better data protection
LegalTech providers take all the necessary measures to keep your data secure. By employing security controls such as encryption, access control, multi-factor authentication, and regular backups, digital technologies protect data against unauthorized access and loss.
Most legal systems are cloud-based, meaning that lawyers can access documents and work on their tasks even when they are out of the office. Similarly, clients can complete the KYC verification and sign documents digitally, no matter where they are or what device they use.
Manual processes often can’t keep up with a growing client base. Even if the law firm hires more people and spends more money, there is no guarantee that it will be able to deal with a large number of customers. Legal technologies, however, are built with scalability in mind. Therefore, they can handle significantly more clients at no extra cost.
How can Penneo support digital transformation in law firms?
Many European law firms are turning to Penneo to automate their KYC and signing processes and accelerate their digital transformation. Here’s how Penneo helps them.
Penneo KYC is a cloud-based solution that helps lawyers speed up KYC checks and meet their AML obligations. All information transmitted via Penneo KYC is end-to-end encrypted, so only the sender and the intended recipient can access it.
Legal professionals rely on Penneo KYC to:
- Collect official identification documents from clients
- Request clients to validate their identity using their national eID
- Automatically screen clients against PEP and sanctions lists
- Automatically retrieve UBOs and company information from official business registers
- Carry out guided risk assessments
- Store documents in compliance with the GDPR
- Report suspicions of money laundering or terrorist financing to the relevant authorities directly from the platform
- Import client data from their core legal software with the help of API and predefined integrations (e.g., Abakion Legal)
Penneo Sign is a cloud-based digital signing and data collection platform designed to meet the needs of legal professionals. Say goodbye to back-and-forth emails and face-to-face meetings — Penneo Sign makes document signing convenient, fast, and efficient.
Law firms use Penneo Sign to:
- Automatically route documents to multiple signatories in a specific order based on the different signer roles
- Set up and automatically send reminders to get documents signed on time
- Send documents for signature directly from their core legal software with the help of API and predefined integrations (e.g., Unik Advosys, EG AdvoPro)
- Provide a more convenient experience to their clients by allowing them to sign documents digitally using their national eID
- Get multiple documents signed simultaneously
- Store documents in compliance with the GDPR
To stay competitive and thrive in today’s digital world, law firms and legal departments need to embrace digital transformation and take advantage of the opportunities that LegalTech provides.