While technological advancement is disrupting every sector of the economy, how can it not attract the banking & finance sector?
Especially for those operations that demand lots of paperwork, time, and security compliances. One of the most helpful technological inventions which are being enjoyed by many countries across the globe is a digital signature in banking.
Let us understand more about e-signature esignature solutions, online signature pricing, esignature software features, and more.
What is e-signature?
E- signature, in simple words, means a hand-written signature amplified or created with the app or a tool or software through a mobile or internet-based device. In short, it is a scanned or a digital copy of the original hand-made signature. E-signatures can be used to verify personal identification or to authenticate user identity. Just like normal, hand-written documents, digital signatures can be imported and exported to:
- Sign online documents or contracts,
- Subscription or business forms,
- Approving financial transactions,
- Signing government applications, etc.
However, before indulging in any sort of e-signature solutions, it is important to identify the features of esignanure solution and understand how banks can benefit from deploying this digital advancement.
Must-have features in any e-signature solution
Banking and finance institutions understand the importance of government approval better than any other sector of the economy. Hence, before deploying the solution, it is recommended to check its compliance with the law of the land. There are a few countries in the world that consider electronic signatures equivalent to hand-written signatures. According to the U.S. eSignature Act passed in 2000, the country accepts e-signatures at the official levels. In a similar way, every country has its own rules that decide the scope of digital signatures in terms of authenticity and approvals in the legal framework.
Cyber activities come with a security concern. While operating any digital platform or performing any web-based activity, users tend to share huge data knowingly or unknowingly. As the financial organization that would be requesting customers to use digital signatures as a part of optimized customer services, the banking setup will have to assure customers of security in terms of their signature and crucial financial and personal data. Banks are recommended to choose a solution that ensures this safety through measures like SSL security, access-authentication layers, along with an effective data encryption and validation process.
A user-friendly esignature software will serve individuals, small enterprises, and large companies with an efficient customized approach.
Individuals can save themselves from boring, never-ending lines in government offices or banks. Right from signing invoices, filing for tax returns, registering for benefits, or opening an account, everything can be done from the comfort of home, from any corner of the world.
For small organizations
Most of the organizations are involved in one type of online transaction or other. Be it ordering inventories, making sales, sharing invoices, or paying one. Businesses cannot do without digital facilities. When so much has become online, it makes sense to use esignatures to smoothen the workflow and optimize the working pace. Plus, it is surely one of the effective customer relations strategies to accept and share esignature.
For large organizations
Time and security hold large importance to every large scale organization. Signature holds higher value and crucial things are always at stake. Esignature allows the executive or any authorized person of the organization to enter new deals, approve loans/accept deposits, etc, without having to spend time in signing different documents zillions of times. One esignature can be used everywhere.
One of the must-have esignature software features is effective after-sale services. There has to be a robust team that is available to solve your queries at any time of the day.
Awareness and education:
If you are a bank that has not used or heard of this solution before, the solution provider must conduct a demo emphasizing on the usage and user instructions. You can conduct a training class for the staff that might have to use the technology as a part of their job responsibility.
Countries where e-signature has the same legal status as a written signature:
- New Zealand
- South Korea & a couple of more.
How digital signature in banking is disrupting the sector
The world has changed and so is the banking sector. The modern banking sector allows it to adopt technology integration. The banking sector prefers digital solutions to the traditional face to face banking methods. Taking a step ahead from the use of technological solutions like document scanning solutions, banks are ready to deploy reliable esignature software to automate the workflow. Plus, customer experience is an extra advantage. Who would not want to open an account in a bank that believes in quality services, does not waste customers' time, and save some costs too?
Plus, one customer can perform multiple activities in the bank without having to sign new documents each time. Once the customer data is updated with an esignature, the same signature will be valid for multiple uses, such as while applying for a loan, making investments, opening a trading account, etc.
Digital signature leads to speedy transactions, reduced costs, improved customer satisfaction. Plus, digital signatures can be taken on any mobile device like a smartphone or a tablet. A flexible approach creates a sense of comfort in the customers. This indirectly helps in building trust and loyalty.
Once the banks start using this solution on a day to day basis, they can see the benefits of it in terms of costs, productivity, comfort, and others.
Banking organizations have been enjoying the benefits of internet banking and mobile banking already. Most of the banks understand the importance of automation or digitization when it comes to customer services, productivity and most of all cost-effectiveness. Adapting to digital signature will help banking organizations to save valuable amounts that would have otherwise been wasted on underwriting related costs. Online signature pricing is also pocket friendly. As per the business review and report published on Finances Online website, there are three benefits of using a digital signature to the finance sector:
- Organizations can expect a 92% reduction in scanning errors.
- 66% reduction in the missing documents.
- 80% increase in audit efficiency.
The fact is, today’s generation and every population with a smartphone in their hands are expecting everything around them to go digital. This generation doesn't like to waste time standing in long queues, handling papers, etc. So banking institutions do not have a choice but to get ready to serve these new demands which are going to get more automation-centric as the time passes. To increase working efficiency this fact has to be considered, and deploying digital signature solutions will be a great start. Let us understand one benefit of esignature through an example.
In a banking environment, the borrower’s loan application has to be signed by multiple individuals and banking professionals. The same application is shared with all the concerned contacts through fax or sometimes these contacts are called to the bank to complete all the process face-to-face. This extends the duration of loan approval, wasting borrower's and others’ time and efforts. On the other hand, if the bank is accepting digital signatures, then the concerned contacts can do the needful through online platforms, without having to visit banks or sign different papers multiple times. When banks’ customers are happy it adds to the satisfaction level, and the reduced human efforts add to efficiency, as there is hardly any scope for delay or errors.
Read the blog- 5 Ways E-Signature Software Helps the Banking Sector in 2020
The truth is, hand-written signatures can be easily forged. Plus, there is a risk of the signed papers getting stolen, damaged, lost, or misplaced. In this sense, digital signatures bring a lot of security to the process. Signature software use encryption technology along with upgraded technologies like text-code authentication and knowledge-based authentication (KBA),etc to authenticate the parties that have signed the document.
Banks will be able to function with the same or reduced staff after deploying digital signatures. Such banks will be able to handle increased number of transactions along with an improvement in the time-to-value attribute. Back-end workflow will get smooth and extra time will be saved. As per one study, using esignatures in the banking sector can help save about 1.3 hours behind every transaction.
Apart from the above-mentioned benefits of esignature, here are some more value-added impacts of eSignature Solution for banking:
Be supportive of the green earth movements and promote paperless operations. Inspire other leaders and your customers to be eco-friendly. This is an effective way of boosting productivity, adding to customer satisfaction, and being socially responsible.
The speed with accuracy:
The inspiration behind deploying this solution should be to build an agile work system with a seamless workflow and efficiency within the team, and every integrated department.
A digital solution with a cloud backup will be the ultimate lethal solution for any organization. Smart esignature software will make provisions to store the crucial personal and financial data of your customers safely on the cloud with optimized data protection rules.
To wrap up:
Financial institutions across the world are enjoying the benefits of digital signature. Some of these institutions are going a step ahead and integrating other technological developments in the present automation system such as: biometric authentication, SMS-based e-signing, etc.