Programmatic Contracts & Use Cases
Smart tools, dumb processes
Digital innovation is reshaping the global economy at light speed and this is causing a serious fragmentation. We are in limbo where a half of our tools are extremely smart and the other half require us to manually push them along. For some reason corporations decided to solve this with layered processes, complex structures and an impressive stack of tools.
We’ll likely look back at this awkward phase and laugh, but for now, it’s time to address these issues.
If you’re unfamiliar with programmatic contracts, don’t worry — it’s simple. Programmatic contracts are self-executing agreements that automate the mundane tasks you’re probably still handling manually.
Why Programmatic contracts are gaining traction?
The rise in programmatic contracts comes from the growing demand for automation and security in business transactions. Companies are seeking ways to streamline operations, reduce legal costs, and improve accuracy. Legaltech has reached a point where this can be achieved seamlessly, and programmatic contracts are leading the charge.
Programmatic contracts not only simplify processes but also mitigate the risks of human error and fraud, which can result in significant financial losses for corporations.
In an increasingly complex and digital world, a solution that can detangle and execute with speed and precision is a must.
Digital contracts vs. Programmatic contracts: what’s the difference?
While digital contracts are online versions of traditional agreements, they lack automation. They remain static documents requiring manual intervention. For example, tracking compliance in a digital contract still involves manually verifying and executing actions.
Programmatic contracts are different. These dynamic, self-executing contracts perform actions automatically based on pre-defined terms.
For corporations, having access to this level of enterprise automation is paramount to scaling lean.
In the following sections, we’ll explore how programmatic contracts can transform three industries — real estate, finance, and healthcare — by improving operational efficiency and reducing costs.
Real Estate
Despite recent economic challenges, real estate remains a major contributor to global GDP. To stay competitive, businesses in this sector must embrace digital transformation.
The multi-trillion-dollar real estate sector spans residential, commercial, and industrial markets. Programmatic contracts can automate processes like property sales, lease agreements, and land registry operations, reducing legal and administrative costs.
In property leasing, programmatic contracts can handle most management tasks, from rent collection to maintenance scheduling.
Banking and Finance
In the financial sector, programmatic contracts can revolutionise how quickly businesses respond to market dynamics and integrate with existing systems.
The banking, financial services, and insurance (BFSI) sector is vast, covering everything from banking to asset management. Programmatic contracts automate loan approvals, settlements, and compliance, reducing fraud risk and operational errors. They also minimise intermediaries, speeding up transactions and cutting costs.
Healthcare
In healthcare, the adoption of programmatic contracts offers significant benefits in managing pseudonymous and anonymous clinical data.
Clinical research organisations, pharmaceutical companies, hospitals, and research institutions can optimise a range of processes. They can automate contract management in a way that improves compliance, and reduce administrative burdens, leading to cost savings.
Programmatic contracts: a catalyst for digital transformation?
This article highlights how programmatic contracts can transform the real estate, BFSI, and healthcare sectors. As technology advances, these contracts will redefine business practices, transforming contracts from static documents into self-executing systems.
Beyond specific industries, programmatic contracts could reshape public sectors and create new opportunities in areas like dynamic retail pricing and IoT-powered sustainability efforts.
Embracing programmatic contracts is more than just a step forward in technology; it’s a strategic move toward a future where businesses operate with unmatched efficiency, precision, and trust.
Programmatic contracts aren’t just a tech solution — they’re a game-changer. Industries requiring precision, automation, and compliance will find their future in programmatic contracts. Early adoption will give businesses a significant advantage over the competition.
