One of the ways that they are doing so is by adopting eSignature solutions. This technology provides them with a secure and compliant way of automating all the transactions that require a customers signature.
In the past, a customer had to go to the banking halls and probably wait in long queues to apply for loans, deposit a cheque, open accounts, apply for checkbooks, and more. However, eSignature for banking has made it possible for customers to sign documents from wherever they are without having to physically visit a bank.
Implementing electronic signatures in the banking sector offers numerous outcomes from cost reduction to better customer experience and more. Digital signatures are also safe and implementing it can save around 1.3 hours per transaction. This is possible because these signatures are efficient and can track documents quite fast.
The availability of technology and tech devices is easy today, such devices like the touch screen devices have made signing documents fast and easy. E-signatures allow customers to complete their banking transactions in a hassle freeway. These signatures are also safe, and they keep all records audit-ready.
Here are some ways that banks can benefit from using E-signatures:
1. They Minimize Transaction Time
E-signatures allow banks to process a good number of transactions within a short period of time. This, in turn, improves productivity and does not only save time but also eliminates any inefficiency seen during tracking and achieving documents.
When bank processes are automated, it helps to reduce human error that is related to a paper-based record. E-Signatures cut down on the workflow from weeks to days or maybe even minutes. Using only web or a mobile browser, such institutions can complete its workflow quickly without compromising on compliance or security.
With the E-signature technology, there are several ways of gathering signatures. This includes the scripted signatures that are drawn on a smartphone's touch screen and the click-to-sign. Mobile capabilities are much preferred since a good percentage of the customers access the bank using their mobile phones. This, therefore, will also save you and your customers a lot of time.
2. Ensure Document Security
Because of their sensitive nature, bank-related documents should never be put at a risk. It is easy for paper documents to be stolen, tampered with, lost, damaged, or vandalized. eSignature solutions for banking ensures that the documents stay safe and secure.
With electronic signatures, the documents are transmitted online free from the risk of being damaged or misplaced. They go through the various systems securely and you will not have to worry about the security of the document or its storage.
They use a text-based authentication that validates the parties that sign the documents. The validation process which is tamper-free is applied once the document has been signed in order to secure its integrity.
The audit trails are used to keep track of the document just to make sure that all signed documents get to their destination. This technology also allows you to track change made on the document and you will be able to know who made the changes and what time the changes were made. There are some e-signature tools that allow you to track the IP address and the device that was used to sign a document.
3. Streamline Internal Processes
When electronic signatures are implemented in a bank, it eliminates all time-consuming steps that are involved in paperwork. You will not have to print, scan, and send loan application forms, contracts or any other document.
Paperwork consumes a lot of time that e-signatures will help you save. With them, all you need to do is to request signatures from the customer and the required party and complete the banking transaction in real-time. It also allows you to send notifications to remind the applicant and any other person who needs to sign the document to do so just in case they have not signed the document yet.
4. Improved Customer Loyalty
Banks need to give their customers the freed to choose where and when they will transact business. This kind of freedom is priceless and customers appreciate such kind of freedom. Financial institutions should prepare for customers who research an account online, applies for it.
E-signatures will allow banks to give their customers such services and more. They offer convenient, easy, personal access to documents, transactions, as well as initiate processes. Such services help to build a strong and lasting connection with the customers, ensuring customer loyalty.
These signatures also eliminate the need for a customer to visit the bank physically and the banks that have digitized their business processes are able to provide better customer experience and at the same time improve compliance.
The eSignature solution for banks, allows the staff and other advisors to have more time that they can use to build a relationship with customers instead of dealing with countless paperwork. There is a lot of time that is spent on photocopying, keying in information, scanning, etc. if this time is directed towards the customers, you can be sure that your bank will attain excellence as far as customer service delivery is concerned. It frees up the bankers' time and allows them to have high-value conversations with their customers.
5. Helps Is Savings
Banks spend millions of dollars yearly to correct, rework, retype and authenticate signatures on documents. This is mainly because bank documents should be error-free. Electronic signature for banking helps in eliminating any errors seen in client signatures.
Read the Blog: What is the Purpose of Using Digital Signing in the Banking Sector?
When these signatures are incorporated in other document processes, they speed up the workflow, save time, manpower, and costs related to manual paperwork like data entry, storage, purchasing costs, and more.
The electronic signature software helps banks save a lot of money and are able to find more time to focus on other aspects of the business. These cost-saving opportunities are also passed on to the customer by giving them low cost and cheaper services.
Bank customers fill several loan application forms and each form needs a signature in order for it to be processed. Handling such forms manually is tedious and tracking them during the signing process is time consuming and challenging because it is almost impossible to know who has the document in case of delays. Electronic signatures improve visibility and transparency in financial institutions.
What to Look For In E-Signature Software
Today, there are so many e-signature software solutions that are available for banks in the market. Choosing the best might take you some time. To help you select one, here are some key aspects that you need to look for:
1. Integrations
When choosing a software, get one that integrates with your applications like Dropbox, Google, ShareFile, Salesforce, and more. This way you will be able to pull in the documents and have them signed electronically without taking more time to import them.
2. Intuitiveness
Your solution of choice must be intuitive to allow the users to sign the documents using s stylus. Selecting an e-signature software that allows you to access documents and sign them electronically while ensuring compliance is very important in the banking sector.
3. Security
One of the most important aspects to consider when choosing an E-signature solution is data security. The software you choose should double up as a security vault for vital information so that the data is securely enclosed in the document.
Make sure that the document signature software solution allows for encryption with standard protocol every time you sign or import the documents. When your data is stored securely auditing also becomes easy.
If you are just getting started with this technology, one question that you might have is how to use these signatures in your bank, and which process will give you the most ROI. All businesses that have channels of communication are good candidates for electronic signatures.
There are several ways in which you can use this technology. Some of the most common include:
- Account opening
- Lending
- Wealth management
- Residential mortgage
- Commercial banking and treasury management
There are very many examples in the financial services industry for how to use these signatures. Some institutions start by introducing them as part of a particular branch information initiative, others begin with online channels and self-transactions.
Regardless of how you choose to adopt this technology, they have a proven track record and will take your bank to the next digital level. The electronic signature technology is the future of transacting business online and you need to start implementing it on the day to day running of your business, so as to also have a competitive advantage.
Final Word
Implementing an electronic signature in the financial and banking sector accelerates sales cycles. The benefits of these signatures are quite many and every bank should consider using them. Moreover, E-signatures reduce environmental impact and ensure that the customer is free to transact business as their own leisure.
