If the world is an oyster, airplanes are the TARDIS, and airports are the veritable blue box (from Doctor Who) – mostly noisy and often claustrophobic. The airport experience is rarely pleasant. Anxiety and stress are common due to flight delays, check-in hassles, seating arrangements (or rather, the lack of them), Wi-Fi problems, and more. This can be distracting for many passengers who would like some quiet time.

An airport lounge is an ideal place to relax and recharge. With free food and drinks, Wi-Fi enabled workstations, and clean facilities, travelers can take advantage of these amenities to unwind or catch up on work. Additionally, the lounge provides a networking opportunity with colleagues and friends. For those who desire a highly personalized or exclusive experience, the Polaris lounge (United Airlines) or Lufthansa’s super exclusive First-Class Terminal offer even more luxurious amenities such as a full bar, cigar lounge, plush sofas, buffet, and salon.

Now, a big pause! Many of you may be wondering if this is a build-up for Premier Lounges or the credit card companies that sell them. The answer is – no, it is not! This is about the parallel between the plight of passengers whose flight gets delayed or cancelled and the fintech’s journey in recent times. While travelers can recharge themselves at airport lounges, financial lounges like Magic FinServ can help fintechs recharge by providing super exclusive, hassle-free, and streamlined services. Magic FinServ’s advisory services and technology solutions can boost the pace of modernization/transformation by a significant 10X times.

The Many Stressors of Fintechs

Similar to how travelers face many stressors such as connecting flights, delayed and cancelled flights, fintech companies can also experience frayed nerves, especially when struggling with legacy workflows, redundant tools and technologies, unending migration problems, data swamps, and potential industry- wide disruptions caused by unexpected forces such as generative AI. Additionally, they must account for past mistakes such as overspending, which has resulted in big banks failing one after the other. The latest to bite the dust is First Republic.

If you are a fintech or financial services provider struggling to keep up with the massive disruptions occurring in the world today and are looking for a way to de-stress and energize, a Financial Lounge is what you need. A financial lounge is perfect for de-stressing your cluttered, siloed workflows and legacy engines from decades ago. Let us explore how.

Welcome to Magic FinServ! The Financial Lounge for FinTechs and Financial Services

  1. Beat the Stress
    • Managing financial data is one of the biggest challenges faced by fintechs and financial services. It is complicated as it involves a lot of sensitive information. Another significant challenge is compliance. Fintechs must stay up to date with the latest standards and work with regulators to ensure that all obligations are met in a timely manner. However, organizations no longer need to worry about these challenges as Magic FinServ can get them up to date.
    • We can help you prioritize data security and privacy, maintain accurate and up-to-date records, and ensure that data is easily accessible and actionable using the cloud and our AI and ML- enabled solution.
    • We can help you streamline your workflows quickly and assist you in embracing disruption.
    • DeepSightTM analyzes vast amounts of data in real-time for use cases such as risk management, fraud detection, AML, KYC, portfolio management, regulatory compliance (Shareholding and voting rights, ESG, T+1, investment and fund monitoring and reporting).
    • You can also count on our team of AI and Machine Learning specialists and FinTech engineers to identify gaps and provide sound advice on how you can leverage technology such as AI to speed up your processes at minimum costs.
  2. Relax and Recharge while our bespoke AI platform crunches numbers faster than Speedy Gonzales
    • Rest and relaxation are important for both physical and mental well-being. Like airport lounges offer a place to unwind and recharge during a stressful time, Magic FinServ’s financial services acts as financial lounge for fintechs providing them with the needed “rest” and allowing them to focus on their core business. Our tools and services can help fintechs manage their finances with ease and confidence. Here is how
    • For humans, sleep is more than a biological requirement. It helps them recharge their batteries for another day of work. However, because of the existence of multiple time zones when markets are alive and active in one part of the world, our analysts weary and tired after a full day of work could be fast asleep, missing several critical incidents in another part of the world. So, when they come back to work the next day, they have their hands full. Most of the work that they would be required to do to keep the processes up to date would be of a manual sort, such as data entry, uploading and downloading files. Making the analyst feel tired like Jack – because all work and no play makes Jack a dull boy.
    • Now you can slay stress and be up-to-date faster than it takes to say I do! Unlike humans, our AI- powered platform does not need any sleep at all. So, while you are fast asleep, our powerful AI-powered solutions are deep at work automating facets of operations that were time-taking and tedious, ensuring that when you come fresh to work the next day, you only have to fine tune or take a summary, as the rest has been taken care of by AI.
  3. Experience a Seamless Transition
    Passengers go through an agonizing period when they wait for a connecting flight, and fintech companies experience a similar sense of anxiety while awaiting the results of cloud migration and modernization efforts. However, with financial lounges such as Magic FinServ, the desired transformation can now be achieved more quickly. Our three-step approach for cloud migration includes:
    • Conducting a cost-benefit analysis with the help of our dedicated cloud team. This analysis takes into account the costs of migration and ongoing maintenance, as well as the savings that organizations can expect to see.
    • Optimizing the cloud environment with the use of automation and orchestration tools.
    • Utilizing cloud-native services such as containerization and managed databases to reduce costs and improve efficiency.
  4. Utilize Time Profitably
    • In today’s fast-paced world, time is a valuable commodity. Similar to how airport lounges with workspaces allow travelers to catch up on work while waiting for their flights, our financial solutions enable fintech companies to leverage the power of AI and ML to stay prepared for any unforeseen consequences. By automating time-consuming and repetitive tasks, our solutions allow fintechs to focus on high-value work and take advantage of opportunities as they arise. This way, they can make the most of their time and operate with maximum efficiency, ultimately leading to increased profitability.
  5. Remain Exclusive
    • People go to these lounges not only when their flights are delayed but also for novelty- it offers a unique experience. So it is for the financial services, we are their niche partner offering them the unique space to innovate and experiment. Because it has become apparent now that despite indications that recession may have set in finally, organizations, especially the bigger ones, are earnest about prolonging investment in moonshot projects. Some of the most common moonshot projects relate to robo- advisory, de-fi, embedded banking.
    • If you are keen on continuing moonshot projects, ensure STF and automation of back and middle-end processes first, because unless these two ends are unified and compatible, it would be unreliable to expect long-term benefits from other areas.

Magic FinServ: an Oasis for FinTech’s

In today’s fast-paced world, FinTech companies face numerous challenges that can impact their ability to succeed. From managing legacy workflows to keeping up with constantly evolving technologies and regulations, it can be challenging to stay ahead of the curve. That is where Magic FinServ comes in – as an oasis for FinTechs.

As experts in data and AI for FinTechs, Magic FinServ provides customized solutions that help companies manage the stress that comes with operating in this turbulent environment. We understand the unique challenges that FinTechs face and work with our clients to develop solutions that are tailored to their specific needs.

Our services act as a refuge for FinTechs, providing them with a much-needed break from the chaos that often surrounds their operations. Just as an oasis provides water and shade to travelers, Magic FinServ provides FinTechs with the support and resources they need to thrive in an ever-changing landscape.

Our clients can count on us to help them manage complex data sets, navigate legacy workflows, and keep up with the latest technologies and regulations. With Magic FinServ by their side, FinTechs can take on new challenges with confidence, knowing that they have a partner who understands their unique needs and can help them achieve their goals.

In conclusion, Magic FinServ serves as an airport lounge or oasis for FinTechs, providing the support and resources they need to navigate the challenges of the modern business world. With our expertise in data and AI, we help FinTechs manage the stress that comes with operating in a constantly evolving

landscape and enable them to thrive in the face of adversity. Contact us today at mail@magicfinserv.com to know more.

Microservices are truly remarkable, revolutionizing the way applications are constructed, managed, and supported within the cloud environment. They play a pivotal role in the cloud-native paradigm, enabling effortless scalability of assets and proving to be a perfect fit for the fiercely competitive market. The extraordinary achievements of Monzo bank and Uber serve as compelling evidence that cloud-native and microservices architecture are undeniably the future. With a digital-first mindset, both Monzo and Uber have embraced minimal infrastructure maintenance costs, exemplifying the immense value of this approach.

Take Monzo, for instance. They have meticulously developed their core banking system from the ground up, leveraging the unparalleled flexibility and scalability of the AWS cloud infrastructure. Through the adept utilization of microservices architecture and employing container tools like Docker and Kubernetes across multiple virtualized servers, Monzo has successfully attracted a significant proportion of millennials to its customer base, owing to its streamlined and user-friendly approach. As the cloud- native approach continues to gain traction, it becomes imperative to delve into the challenges and benefits that organizations encounter when utilizing microservices, which lie at the heart of the cloud- native philosophy.

Capitalizing on the Cloud: Understanding Cloud-Native Architecture

How can organizations break free from mainframes, monolithic applications, and traditional on- premises datacenter architecture? The answer lies in adopting a cloud-native approach, which empowers modern businesses with unparalleled speed and agility.

Cloud-native applications are built from the ground up, specifically optimized for scalability and performance in cloud environments. They rely on microservices architecture, leverage managed services, and embrace continuous delivery to achieve enhanced reliability and faster time to market. This approach proves particularly advantageous for financial services, banks, and capital markets, where a robust and highly available infrastructure capable of handling high- traffic volumes is a necessity. The key components of a cloud-native approach are as follows:

  • Cloud service model: Operating on the fundamental concept that the underlying infrastructure is disposable, this model ensures that servers are not repaired, updated, or modified. Instead, they are automatically destroyed and swiftly replaced with new instances provisioned within minutes. This automated resizing and scaling process guarantees seamless operations.
  • Containers: Container technology forms another critical pillar of the cloud-native approach, facilitating the seamless movement of applications and workloads across different cloud environments. Kubernetes, an open-source platform, takes center stage in managing containerized workloads efficiently, with speed, manageability, and resource isolation.
  • DevOps: DevOps is a methodology widely adopted in the software development and IT industry. It encompasses cultural philosophies, practices, and tools that enhance an organization’s ability to deliver applications and services at high velocity, thus enabling accelerated innovation. This approach promotes collaboration and communication between development teams and IT operations, driving efficiency and agility.
  • CI/CD pipelines: Continuous Integration/Continuous Delivery (CI/CD) pipelines focus on automating and streamlining software delivery throughout the entire software development lifecycle. By integrating frequent code changes, running automated tests, and deploying applications in a consistent and automated manner, organizations can improve productivity, increase speed to market, and ensure higher quality software releases.

Lastly, microservices play a pivotal role within the cloud-native architecture. Drawing a parallel to the Marvel character Vision, microservices are fragmented and independent, similar to how Vision remains intact despite encountering multiple setbacks on his journey to becoming a superhero. Microservices function as modular and cohesive components within a larger application structure, enabling flexibility, scalability, and resilience.

By embracing cloud-native architecture, organizations can unlock the full potential of the cloud, capitalizing on its scalability, reliability, and performance. It offers a transformative approach to application development and deployment, revolutionizing the way businesses operate in the digital era.

The Game-Changing Benefits of Microservices Architecture

Microservices offer numerous advantages. Unlike monolithic applications, where all functions are tightly integrated into a single codebase, microservices provide a less complex architecture by separating services from one another.

In the ever-growing landscape of application development and testing costs, microservices are an excellent choice for fintech and financial services due to the following reasons:

  • Quick scalability: Microservices enable easy addition, removal, updating, or scaling of individual services, ensuring flexibility and responsiveness to changing demands.
  • Disruption-proof: Unlike monoliths, where a failure in one component can disrupt the entire system, microservices function independently. This isolation ensures that a failure in one service does not impact the overall service, enhancing reliability and fault tolerance.
  • Language agnostic: Microservices architectures are language agnostic, allowing organizations to use different programming languages and technologies for individual services. This flexibility facilitates the use of the most suitable tools and frameworks for each specific service, optimizing development and maintenance processes.
  • Easier deployment: Microservices enable the independent deployment of individual services without affecting others in the architecture. This decoupling of services simplifies the deployment process and reduces the risk of unintended consequences.
  • Replication across areas: The microservices model is easily replicable across different areas or domains. By following the established patterns and principles of microservices, organizations can expand their architecture and leverage the benefits of modularity and scalability in various contexts.
  • Minimal ripple effect and faster time to market: In monolithic architectures, introducing new features or implementing customer requests can be a lengthy and complex process. However, with microservices, new features can be developed and deployed independently, reducing the risk of a ripple effect, and enabling faster time to market. Customers can experience desired features within weeks rather than waiting for months or years.

By leveraging microservices, fintech and financial service organizations can enjoy increased agility, scalability, fault tolerance, and accelerated innovation while optimizing development and operational costs.

Why are microservices difficult to implement?

With great power comes great responsibility and so while microservices are indeed a brilliant step toward application development, there are many challenges that make it tough to handle. However, because there are multiple depedencies associated with microservices, testing microservices-based applications is not an easy task.

Here are some of the challenges that teams face when implementing microservices:

  • Collaboration across multiple teams: The existence of multiple teams working on different microservices can lead to coordination challenges. Ensuring effective communication and collaboration between teams becomes crucial to maintain alignment and avoid conflicts.
  • Scheduling end-to-end testing: Conducting comprehensive end-to-end testing becomes challenging due to the distributed nature of microservices. Coordinating a common time window for testing all interconnected services can be difficult, especially when teams are working across different time zones or have varying release cycles.
  • Isolation and distributed nature: Microservices operate independently, which brings benefits but also challenges. Working in isolation can make it harder to ensure seamless integration and coordination between different microservices, potentially leading to compatibility issues or inconsistencies in functionality.
  • Data management complexities: Each microservice typically has its own data store, leading to data management challenges. Ensuring data consistency, integrity, and synchronization across multiple microservices becomes critical to maintain a holistic view of the system.
  • Risk of failure: With the increased number of services and their interdependencies, the risk of failure also amplifies. A failure in one microservice can potentially affect other dependent services, leading to cascading failures and system-wide disruptions.
  • Bug fixing and debugging: Identifying and fixing bugs in a microservices architecture can be more complex than in monolithic systems. Since microservices work in isolation, debugging and troubleshooting require careful analysis and coordination among different teams responsible for individual services.

Resolving the Challenges

Microservices serve as the fundamental building blocks for modern digital products and ecosystems. Their architecture offers the flexibility to choose the language or technology for rapid and independent development, testing, and deployment.

To overcome these challenges, it is essential to address the following:

  • Include specialists for every layer: Ensure the presence of experts in user interface (UI), business logic, and data layer to effectively handle the complexities of microservices architecture.
  • Manage turnover effectively: Acknowledge the possibility of skilled resources leaving and establish a plan to ensure seamless transitions and quality replacements.
  • Prioritize dedicated infrastructure: Ensure the availability of high-quality cloud computing and hosting infrastructure capable of handling the anticipated load and traffic, guaranteeing the optimal performance of the product.
  • Implement a principled DevOps approach: Given the higher risks of security breaches in microservices, adopt a rigorous DevOps approach to enhance security measures. Secure APIs play a vital role in safeguarding data by allowing access only to authorized users, applications, and servers.
  • Establish service alignment through APIs: Despite working independently, microservices are interconnected within the application structure. Therefore, it is crucial to ensure proper alignment and communication between services through well- designed APIs.
  • Enable dynamic communication: Microservices should possess the ability to communicate not only in the static state but also in the dynamic state. This requirement necessitates the utilization of load balancers, DNS, smart servers, and clients.

Why Choose Magic FinServ for Cloud-Native and Microservices Excellence?

Capitalizing on the power of cloud-native and microservices architecture is crucial in today’s digital landscape. However, organizations face challenges such as re-platforming and re- factoring when implementing cloud-native applications, as highlighted by an IDC survey. To fully leverage the potential of the cloud, organizations need a partner that possesses a comprehensive understanding of cloud architecture, DevOps practices, and the architectural changes brought about by microservices to support the cloud-native model.

At Magic FinServ, we have a proven track record of successfully building and delivering digital products, web apps, and services to market using agile methodologies. Our solutions are built on a structured approach that optimizes value and ensures early wins.

By partnering with us, you can expect the following benefits:

  • Break the monolithic application into microservices.
  • Enable a shift from waterfall to agile with a minimum viable product at the core.
  • Cost management by focusing on early wins and generating incremental value.
  • Ensure operational excellence with automation with CI/CD pipelines and IAC. Enhance productivity with DevOps and Agile methodologies.
  • Incorporate horizontal scaling and design for performance efficiency.
  • Ensuring security is baked into the DevOps lifecycle.

If you would like to know more about you can write to us mail@magicfinserv.com

In today’s fast-paced world, technological advancements are reshaping industries, and businesses must adapt to stay relevant and competitive. This infographic explores the importance and inevitability of modernizing applications and platforms, uncovering the transformative potential that lies within this process.

Unlock the power of modernization and embark on a journey towards a brighter future for your business. By breaking the shackles of legacy, you embrace the inevitability of progress and position your organization for success in a rapidly evolving digital landscape. Stay tuned as we delve deeper into the world of modernization and share insights on how to navigate this transformative journey. Together, let’s shape a new era of possibilities.

What is the strategy for halting #Erling Haaland’s unstoppable goal-scoring spree? He has been an unstoppable force!

In his debut season, the exceptional Norwegian striker has scored an incredible 48 goals in 41 matches. In the Premier League, he is only a couple of goals away from breaking previous records.

With Haaland’s remarkable ability to convert strikes into goals during the Champion’s League playoffs, rival team managers are on a prolonged hunt for a solution. While Haaland continues to amass more Easter eggs, his opponents must find ways to impede the ascent of the 22-year- old Manchester City sensation.

It is a relief that a plan has finally surfaced, and it is strikingly like what our developers at Magic FinServ have been implementing for a while now to prevent a bug from unleashing its destructive potential. In an interview with a TV show, Brantford defender, Ben Mee, elaborated on a strategy to confront Haaland on the field. The strategy entails several steps:

  1. “Man-mark” Haaland. Train all your guns on him. Predict all his moves including his goal scoring and penalty taking tendencies, etc.
  2. Sandwich him or crowd him out of the game which simply means pushing him out of the picture or breaking the link between him and his teammates.
  3. Withold midfielders, who are more important than the star striker as their creative passes enable Haaland to make the golden strike.
  4. Bee Mee openly admitted that Brentwood’s strategy was all about stopping Kevin De Bruyne’s link play with him, and that’s why Brentwood was one of the few teams that could keep the Norwegian star striker from going on a rampage.

Whether it is Haaland or bugs, it is necessary to contain them before they go on a destructive spree and cause harm (to opposing teams) or applications. As with Haaland, developers have some strategies for stopping bugs which are as under:

Tackling bugs is not an easy task

When it comes to the issue of bugs, there is unanimous agreement that developers must eradicate them to prevent additional harm. This involves identifying and isolating the bugs, carrying out comprehensive testing to eliminate them, and thoroughly checking the environment and APIs, whether in the cloud or on-premises, where significant threats may exist. Magic FinServ’s approach is akin to Ben Mee’s strategy. Our QA and testing teams ensure that the bugs are promptly addressed to prevent their proliferation.

Crowding out the Bugs with Automation and Integrated DevOps practices

We crowd out the bugs using an extensive mix of automation, regression testing, and carrying out tests of the software in different environments to ensure that the performance is as desired irrespective of the kind of operating systems, APIs, browsers, and hardware configurations. To fully test an application and ensure optimal performance, developers rely on different types of testing – functional testing, usability testing, and performance testing.

The kinds of tests we do:

  • Magic FinServ offers test automation/tool expert services, test automation frame and design services, and business and domain assurance testing services for data verification.
  • We provide non-functional testing such as Data warehouse testing and ETL services along with security assessment and security testing services. If the data is on the cloud, then cloud-based test design and execution services
  • Additionally, we offer functional testing for QA performance engineering optimization, QA agile transformation services along with QA audit and process improvement services.

The Benefits of Integrated DevOps and Lifecycle Automation for Testing Approach

At Magic FinServ, an integrated DevOps approach and automated testing are utilized for quality assurance, in contrast to a manual approach where testing is conducted at the end of the development lifecycle due to business and operational constraints, leaving only time for functional tests.

Fewer incidences of bugs slipping in: Compared to the manual approach, where the incidences of bugs slipping in or flaws existing are high, – Magic FinServ’s approach to QA and testing is more effective as it relies more on technology and less on human intervention and hence is quick and proactive (anticipating bugs and flaws is easier).

High visibility and less dependence on key people: In the manual approach the same set of people are required to carry out key tests increasing the dependability on them.

We follow the Agile and DevOps practices which promote high visibility and limit dependency on key people. The use of automation also eliminates the need for synchronization with downstream systems, ensuring that teams can continuously test using shift-left/shift-right methodologies to quickly identify and eliminate potential threats, resulting in a richer user experience.

Automated testing and an integrated approach minimize defects to less than 5% and the time taken to fix an issue and provide the QAs with a new build is less than a day. As the incidences of false positives are minimized with automation, less time is spent weeding out the exceptions.

API Automation Accelerator


Erling Haaland’s presence on the field leads to one-sided matches but watching him play is a delightful experience. We hope Ben Mee’s evaluation will bring about more excitement and breathtaking goals during the upcoming May 2023 semi-final match between Manchester City and Real Madrid, and the Champions League final in June 2023. If you have any inquiries regarding bug deactivation and ensuring optimal user experience, please contact us at mail@magicfinserv.com in the meantime.

For most organizations, the lack of timely insights can make contract data management a nightmare. Without the necessary tools and technologies, many organizations can be caught off-guard when it comes to negotiations, execution, renewals, and termination of contracts. It is estimated that lack of timely insight into obligations and terms can result in revenue leakage of more than 9% annually. Source: (World Commerce and Contracting)

Whether it is Auto-Renewal, Termination, and in recent times Force Majeure, these clauses within the contract results in unnecessary diversion from business objectives, as the excessive reliance on the manual approach can only lead to unsavory incidents and disagreements between parties concerned.

No one would want that. The experts point out that an average Fortune 1000 company could handle several tens of thousands of contracts. Now if we were to consider the various stages of the contract management lifecycle – negotiations, execution, renewal and the multiple stakeholders involved – sales, finance, and legal teams, all this would simply mean that the amount of effort deployed (and expenses paid) to ensure streamlined operations would be huge. Source: (World Commerce and Contracting)

Hence in recent times, businesses have switched from the predominantly manual approach of contract data management to a more agile and technology-oriented perspective using automation, digitization, and robust data management (including meta data management) practices such as organizing a unique repository for each contract and curated database for locating a specific contract with ease. This shift provided organizations with a definite strategic advantage even during the pandemic, improved vendor relationships, enhanced visibility, and business gains as negotiations were conducted timely, while keeping at bay all possible risks.

So, if you are considering an overhaul to have better control over your contract data management, here are the 6 key players that could be a game changer for your organization.

5 key players of Contract Lifecycle Management

According to the latest forecast by Gartner, by 2023, artificial intelligence (AI) will enable 30% faster contract negotiation and document completion processes in organizations that deploy leading contract life cycle management (CLM) solutions. As a fintech or financial organization, you can still salvage the situation. For reports point out that the latest tools are enhanced with a version control mechanism and searchable repositories for arriving at the single source of truth with minimum effort and human intervention resulting in significant productivity improvement and reduction of sales cycles.

Digitizing data: Begin with the digitization of data. Keeping track of documents, the multiple edits that are incorporated from time to time, can be a tedious and wasteful exercise. Furthermore, with data existing in silos a nightmare situation can arise if stakeholders have multiple versions of the contract. In order to avoid contract nightmares, the first critical step is to digitize data. Whether public documents, emails, or paper agreements, digitize the contracts so that there is a single source of truth.

The 5 levers of transformation

When it comes to contract data management, the following technologies have a key role to play in its transformation. The following 5 levers of transformation supplant the slack/inefficiency associated with traditional manual contract data management and provide it with agility, visibility, accuracy, faster response times, and productivity.

Optical Character Recognition: Once organizations have proceeded with the digitization of the diverse document types, they must work out how they must extract relevant information from the volumes of data available because machines inherently lack the power to read them. Despite the variety of document types, and field types – names, dates, boilerplate text, different fonts, and even handwriting, OCR can read through it all and extract the relevant information faster in a standardized, streamlined fashion.

Natural Language Processing: The language used in contracts is complicated and legal in nature and can be best understood by professionals or the legal experts. A rule-based approach enables progressive understanding of the terms and the context, and organizations can even retain experts for relating and better understanding of context when it comes to ambiguous/difficult-to-understand terms and conditions.

Robotic Process Automation: Contract automation has been defined as the software to enable both legal and non-legal teams to self-serve on routine legal documents, at scale, without needing to involve lawyers every time. It can be described as the process of generating, managing, and storing contracts digitally to create a more efficient contract workflow. In order to bring about greater productivity and efficiency, we recommend automation of all tedious and repetitive data extraction tasks.

Machine Learning and Artificial Intelligence: No organization will like to miss the deadlines as there could be significant costs associated with it. Staying-up-to speed on contract renewals can seem like an uphill task, but with artificial intelligence and machine learning, you can ensure that your teams never miss an important obligation. Artificial Intelligence and Machine Learning comes streamlines the process for most organizations dealing with multiple contracts (big organizations juggle some 20,000 and 40,000 active contracts). Keeping up-to-date and abreast of the latest on a monthly or yearly basis would simply be impossible without the technology underlined above.

Taking control of contract management with Magic FinServ’s DeepSightTM

We can help streamline contract data management. Ensure that there are no contract nightmares that ever cause organizations to pull in resources needlessly for firefighting. Here’s how we assure a smarter contract management powered with OCR, RPA, AI and ML.

Contract Data Extraction Workflow

Magic’s DeepSightTM – the process optimization platform along with our Advisory practice provides a configured solution that acts as a virtual assistant to the analyst thereby reducing the complexity of the task. It automates standard processes to reduce errors and omissions and enables the less experienced and less skilled analysts to be able to perform their tasks.

How DeepSightTM works?

Processing diverse documents: Service Provider Agreements vary by type of service; each service provider has its own unique terms and conditions. These documents have to be categorized according to type of service and for each service provider, relevant content identified and extracted

Unique folder for easier access and retrieval: Our solution not only identifies and segregates different documents but also files all documents for a particular service provider in the same folder to enable ease of access and retrieval.

Rules based: Magic DeepSightTM solution incorporates business specific rules to identify relevant information and extract the same and update it in deal maintenance system after proper cleansing, enriching and transformation. Content extracted can be key value pairs, tables, or free flow content such as covenant clauses. If it is deal related, the key value pair is extracted. In the case of governance, contextual data is extracted and in deal maintenance details, combination of contextual and key value pairs are extracted which are all driven by the rules. Solution can go through the entire set of documents related to a particular deal including annexures, renewals, etc. to identify the latest terms and incorporate in the deal maintenance system.

But remember all this starts and ends with data. Data is the motherboard of contract lifecycle management. So as an organization we are in a unique position to aid data-driven transformations as we have the expertise, and the skill sets to deal with all your concerns. If you too would like to know, how we can be of help, contact us mail@magicfinserv.com.

The Future’s Getting Breathtakingly Simple

Before the Covid-19 pandemic, managing contracts was not an easy business. The legalese that contracts are clouded in, constitutes just a small fraction of the challenge that organizations face during contract management. The bigger challenge is the existence of contracts in diverse forms such as public websites, paper, emails, and ensuring that obligations are met in a timely manner so that there are no monetary losses or wranglings/disputes with the parties concerned later.

A change has been necessitated because as the world gets smaller, as borders fade out when it comes to doing business, and the number of stakeholders multiplies, the stakes have also become disproportionately high, and as a fintech or financial institution you simply cannot afford to leave anything to chance. Hence, the need for augmenting human intelligence and capacity with intelligent tools powered by Artificial Intelligence (AI) and Machine Learning (ML) and relying enormously on digitization capacities and the cloud for managing, storing, and interpreting contractual information effortlessly.

Demystifying the Reasons Behind the Shift!

Though contract data management has always been a long-winded and paper-heavy process, there has been a subtle shift post covid as organizations are becoming more open to using modern technology such as AI and ML post covid 19 for addressing many of their pain points post covid. This was primarily because, during the pandemic and post-it, organizations realized that they could not leave contract data management to the legal experts and the analysts (solely) anymore – for not only was it becoming extremely time-consuming and expensive, but also manual contract data management was proving incapable of providing the desired level of scalability and deep insight that organizations required. So, here’s decoding why as a fintech or Financial Institution, Smarter Contract Lifecycle Data Management is critical for keeping pace in a changing business landscape.

A) Unstructured data in files, cabinets, and silos across the enterprise were difficult to access and update

When the pandemic struck, which was quite sudden, some organizations had either digitized their contracts and processes or hadn’t. For those who hadn’t digitized the swathes of paper agreements or the contract management process, managing contracts turned into a nightmare as accessing files from the repositories or cabinets at a minute’s notice was improbable. This probably was the biggest learning for organizations as they realized that digitization or cloud solutions/cloud-based contract lifecycle management (CLM) enabled a level of business continuity that was not possible when you were relying simply on paper agreements or contracts. If the challenge posed by unstructured data was not enough, the existence of structured data such as the ones in public repositories with multiple stakeholders and existing in silos enterprise-wide constituted another major challenge during the pandemic for the same reason of lack of accessibility.

B) Staying in control was difficult as there was limited visibility into data

In 2020, the number of Force Majeure clauses invoked was a record high in many parts of the world. The force majeure clause implies an Act of God or some unforeseen circumstance, man-made or natural disaster that makes it difficult to fulfill certain obligations of the contract. By invoking this clause in the contract, the parties involved can protect themselves from liabilities that arise due to their failure to provide a certain service or product. Interestingly, the force majeure clause was rarely invoked prior to the pandemic, and if we were to go by the findings of the World Commerce & Contracting Report on the latest Most Negotiated Terms, 2022, it ranks a low 26 in the list of the most negotiated terms, but post the pandemic, it was one of the oft-invoked clauses.

In 2020, the number of Force Majeure clauses invoked was a record high in many parts of the world. The force majeure clause implies an Act of God or some unforeseen circumstance, man-made or natural disaster that makes it difficult to fulfill certain obligations of the contract. By invoking this clause in the contract, the parties involved can protect themselves from liabilities that arise due to their failure to provide a certain service or product. Interestingly, the force majeure clause was rarely invoked prior to the pandemic, and if we were to go by the findings of the World Commerce & Contracting Report on the latest Most Negotiated Terms, 2022, it ranks a low 26 in the list of the most negotiated terms, but post the pandemic, it was one of the oft-invoked clauses.

Today, it would not be hard to imagine how tricky, tiresome, and time-consuming would it be for a human, whether a legal expert or an analyst to skim manually past the swathes of paper contracts or public repositories for finding the terms and conditions associated with clauses such as termination, scope and goals, payment and payment options, data privacy, services levels, acceptance, regulatory compliance among others, and keeping up-to-date and in case of conditions such as the force majeure compliance among others, and keeping up-to-date and in case of conditions such as the force majeure how an untoward incident would have an impact on the organization. Considering the fast-paced business environment that the banks and FinTechs are operating in, finding, updating, and validating the relevant information manually is totally undesirable. However, with intelligent contract data management solutions, and automated solutions, it takes no time to extract, update, validate and monitor information that is required for keeping up to date.

C) Making intelligent decisions was difficult without appropriate tools, approaches, and technology

During the contract data management lifecycle, organizations get the best value from the services or products that must make intelligent decisions. They must access data quicker and faster than ever before. However, with data existing in silos, and in multiple formats, a data swamp builds up over the course of time. In order to make intelligent decisions faster, all data about a particular contract must be in one place instead of clustered everywhere. Using a combination of intelligent tools, powered with artificial intelligence and rules-based engines with capacities for learning and robust data management practices and metadata – a unique identifier without which one would have to wade to tons of data, organizations can take accurate and on-time decisions.

D) The realization that a centralized source of truth is more readily accessible than a file or a cabinet or data in silos

A unique centralized repository where you can store all your data in a digital format is better equipped to handle the challenges of the next-gen contract management lifecycle than the outdated physical file or cabinet. It is bestowed with dynamism thanks to automation, a unique digital repository centralized repository where it is readily available along with metadata, making it much more convenient for organizations than a filing cabinet or a siloed existence.

The Future in Simplicity

Contract data management does not end with the negotiations and signing of the contract between the parties. There is a lot of work that goes in the management of a contract such as keeping up to date, remaining compliant, and realizing maximum benefits, and for that contract management must be made simpler so that there is on-time/on-demand information.

As a financial institution, if you are unable to access information about the contract that you have signed in time and make decisions accordingly, you expose yourself to needless disputes and wranglings later, and are burdened with higher costs, poor performance, unnecessary risks, etc. Contract intelligence solutions begin by centralizing and streamlining contracts providing visibility into all contract data, thus empowering the organization to efficiently monitor all contractual and regulatory compliance obligations. That is the first step to simplifying it.

In the next blog, we will tackle the tools and technologies that make contract management more intelligent and how Magic DeepSightTM enables it. Magic’s DeepSightTM the process optimization platform along with our Advisory practice provides a configured solution that acts as a virtual assistant to the analyst thereby reducing the complexity of the task. It automates standard processes to reduce errors and omissions and enables the less experienced and less skilled analysts to be able to perform their tasks. Stay Tuned!

Investors are increasingly looking at how organizations are embracing diversity, equity, and inclusion. If we look at it from the ESG (Environmental, Social, and Governance) perspective: the diversity, equity, and inclusion triad are the “S” in ESG and are as important as the “E” or environmental impact component.

With DE&I, investors are trying to measure how organizations discharge their responsibility towards their people — employees, contractors, customers, vendors, and investors. They are looking at quantifying the value of a firm based on its DE&I measures, and it is increasingly becoming important as investment opportunities are tied to it.

Let us consider the following two scenarios:

As a Mutual Fund, Portfolio Management, or Asset Manager, you are obligated to ensure conformity with the changing preferences of the millennial investors who are picky when it comes to issues like sustainability and inclusivity. For a delightful customer experience, you must be willing to tread the extra mile. It would be a clear breach of trust if their funds are somehow not found to be as sustainable as they expect them to be.

As a Fintech or Financial Organization, vetting the investor enthusiasm/confidence in your offerings or services could be a steep climb and more so when you have absolutely no idea how to compile and aggregate all the data you have related to the DE&I efforts that you have undertaken, as the millennial investor pushes the boundaries of stakeholder capitalism.

You can onboard additional skills, but why burden your existing teams or spend countless dollars in cleaning and compiling data when there are intelligent tools like Magic FinServ’s DeepSightTM to compile and aggregate data in one common repository?

Let us first decode what are the DE&I guidelines.

What is DE&I?

  • Diversity: Accept differences whether of race, creed, ethnicity, gender identity, etc., in the workplace.
  • Equity: Provide equal access or equal opportunities for pay, promotion, training, and other aspects of employment, regardless of race, creed, color, sexual orientation, age, etc.
  • Inclusion: Foster a sense of empowerment and belongingness.

Why DE&I matters

Whether you are actively promoting DE&I or choose to do it subtly, there is no questioning that the stakes have been raised, and hence showcasing your DE&I initiatives gives you a competitive advantage.

  1. Investors are actively pursuing stakeholder capitalism: Stakeholder capitalism is quite simply a system that ensures that the interests of all stakeholders – customers, suppliers, employees, shareholders, and local communities, are kept in mind and pursued to ensure long-term value creation as engagement/relationship between the multiple parties progresses. With businesses today pursuing this new business model, promoting DE&I initiatives beyond tokenism becomes necessary.
  2. ESG is part of institutional investors’ big vision: Institutional investors are keenly considering ESG as part of their vision, mission, values, and operations, and are actively seeking organizations that promote or adhere to these values and hence the need to showcase the DE&I efforts whether you are a mutual fund or a portfolio manager or asset manager or even a fintech or financial institution desiring be a part of the investor’s big vision.
  3. The investor has the right to know: As organizations could either be explicit in their support of DE&I like Quicken Loans, with a vision and mission statement showcasing their DE&I commitment and ensuring that all reports pertaining to DE&I efforts are made available on public channels that can be accessed free or for a price like GRI (Global Reporting Initiative), Bloomberg, Refinitiv, etc., or it could be subtle about their DE&I commitments, either way the investor has the right to know.
    As an Institute for Sustainable Investing, Morgan Stanley states, “Increasingly proactive, individual investors seek products and solutions across asset classes tailored to their interests. They also want to measure the environmental and social impact of their investments.”
  4. There’s evidence that DE&I promotes innovation and productivity: From the perspective of organizational efficiency and productivity, there is enough evidence to indicate that gender diversity and inclusivity result in greater productivity and innovative thinking. For Asset Management Firms, there iss enough evidence to prove that diversity and inclusion can in fact enhance the risk-return characteristics of investment portfolios. (Source: SASB)
  5. Walking the talk and not forgetting the governance aspect: It is not enough to spell out your commitments, you must be ready to walk the talk. The governance aspect of ESG is unarguably the most crucial element of ESG because it highlights the policy decisions taken by a company with respect to DE&I and how deliberate actions are taken in this regard.

Where to find DE&I data?

Here are some of the commonest sources where you can find information related to an organizations DE&I’ measures.

Employment Information Report (EEO-1):

Component 1 of the EEO-1 reporting is one of the tools for evaluating diversity. It is an obligatory filing,

On May 17, 2022, all employers in the United States of America, with 100 or more employees submitted Employment Information Report (EEO–1) report on the Equal Employment Opportunity Commission (EEOC) portal. The survey contains inputs on demographic workforce data, including data by race/ethnicity, sex, and job categories, and is an obligatory filing as per federal regulations.

Platforms for Disclosure for Diversity and Inclusion efforts

With data collected from the public domain, Refinitiv Diversity & Inclusion Ratings ranks over 12,000 publicly listed companies based on their diversity and inclusion efforts across 24 separate metrics enlisted below. The pillars across which the efforts are computed include the Diversity Pillar, Inclusion Pillar, News and Controversies, and People development.

Bloomberg’s GEI index: There are five metrics across which an organization’s efforts related to gender inclusivity are measured. These include female leadership and talent pipeline, equal pay and gender pay parity, inclusive culture, sexual harassment policies, and a pro-women brand image.

GRI Equality and Diversity Standards

The GRI (Global Reporting Initiative) Equality and Diversity Standards is one of the most notable frameworks for ESG and helps in providing a glimpse into the sustainability standards.

Like Quicken Loans, there are many financial organizations notably – EY, PWC, USAA, Visa, and Amercian Express, that are explicit about their mission to promote a diverse and culturally inclusive workplace. They have statements to that effect on their websites and on their mission and vision statements.

Unstructured data and social media

And lastly, there is a massive amount of unstructured data existing in organization websites, public press releases, annual reports, investor briefings, brochures, organizational collaterals, spreadsheets, social media platforms etc., that provide a clue about the organization’s DE&I initiatives, which ideally must be compiled in a single repository. However, since it is not counted as core revenue-generating activity, this task is long overdue in many organizations. . There are other sources of unstructured data such as HR initiatives and organizational culture, which can provide a comprehensive view of an organization’s diversity and gender inclusivity efforts, but which remain hidden as organizations lack resources and the mindset to aggregate them in one place.

In a Nutshell

Today, some organizations are very vocal about their DE&I practices, and they make it a formal affair to showcase their focus and support on the same by publicly listing on their websites, they have a specific DE&I related reporting and so on. But there are some other organizations which may not be vocal but are supportive and we can notice their support through social media channels, websites, annual reporting and much more. So, there are two parts-

Formal Regulatory Reporting which has been asked by EEO commission and requires to submit a report, and organizations have made it available on their website, in their mission statements etc.

Voluntary Reporting – This is where organizations support the DE&I norms as it is a part pf ESG framework, and all of this is available across organizations various platforms and channels in unstructured way.

So, DE&I is becoming increasingly important aspect both from companies’ perspective as well as cultural perspective as research has shown that the companies which practice DEI (Diversity, Equity, and Inclusion) have been seen to be taking better decisions as it has got diverse culture and people across the organization.

As an investor or an analyst who wanted to take a call based on DE&I performance – our process optimization platform – DeepSightTM can support both sides of a coin. It can compile all the organization data which is present in unstructured formats and help prepare those DE&I reports and for the analysts when they are investing and their major issue is DE&I, it can make all the multiple reportings accessible to them.

The Big Question? How to Build Reliable Data

The big question is how to collate and compile data for relevant insights. Extracting insightful data is easier said than done. How does a company assess inclusion and belonging? We have everyone, from the regulators to the investors and shareholders, and employees and new recruits questioning “Where are the numbers?”

Manual data extraction is impossible as data is far too fragmented, there are multiple frameworks such as the GRI, SSB, Bloomberg, and Refinitive, among others, where organizations file their details, and multiple and varied unstructured data sources that must be considered for a complete round-up of the organization’s DE&I initiatives.

Data Compilation and Extraction with Magic DeepSightTM

In the fast-paced business environment that Asset Managers and Mutual Funds work in where data is typically updated every minute on multiple websites and a similar amount of unstructured data is also generated every day, going through zillions of data manually is indeed a cumbersome task.

Instead, intelligent tools relying on OCR, NLP, AI, and ML can make it easier for these analytics-driven organizations to not only extract data, but systematically examine data for validity and conformity using means like rules, algorithms, look-up tables, etc.

An intelligent rules-based tool and process optimization platform DeepSightTM when leveraged appropriately can significantly help ensure transparency and accessibility of the DE&I data by first ensuring extracting the relevant data elements at significantly fewer costs and compiling, cleaning, validating, and augmenting that data so that they can be fair and ethical when making investment decisions. We will help you adopt the best approach powered by AI (Artificial Intelligence) and machine learning for eliminating the scattered and siloed legacy of demographic data while ensuring visibility and accessibility. Share the nature of your concern, or write to us mail@magicfinserv.com.

Get Insights Straight Into Your Inbox!