Use of Electronic Signature in the Financial Industry

28 Aug

For a long time, the financial industry has been deemed as resistant to change but that’s slowly changing.

Modern financial institutions are now incorporating new technology into their cultures as a way of keeping up with the latest trends. The advancement in technology has compelled them to adopt new ways of keeping their clients happy through effectiveness and efficiency. Today’s clients expect financial institutions to digitalize their systems to enable them to execute their financial obligations swiftly through online payment and banking solutions. The sector is finally realizing that keeping up with the customers’ needs is the secret to remaining competitive in the industry.

The Importance of electronic signature in Modern financial industry

1. Effectiveness and efficiency

Financial institutions are now offering their clients safer, easier and faster services as compared to previous years thanks to the advancement of technology. Embracing eSignature for financial management has made things much easier for them in terms of executing their financial affairs, predicting future financial trends and meeting the demands of tech-savvy clients. With that in mind; financial institutions which fail to embrace and implement modern technology tend to be less effective than their rivals which can be bad for business. Banks have no option but to adopt new digital innovations such as eSignly to be able to provide efficient digital services to clients. In addition, electronic signatures simplify the process of circulating and delivering documents to several third parties since transfers can be done electronically. Enhanced efficiency simply means automating the entire process which makes it faster, reliable and easily accessible 24/7 to internet-connected parties rather than dragging them to their respective branches just to sign documents.

2. Safe and secure services

Financial institutions such as banks are expected to provide first-class online services in today’s digital era. Realistically, it is difficult to provide safe and secure services achieve without embracing the latest digital innovations. It is no brainer then that the sector is partnering with electronic signature financial services firms, to help them keep up with the competition. Clients need assurance that these financial institutions can provide reliable, trustworthy, safe and secure operations for them 24/7. The sector deals with some of the most delicate documents which explain the need for the financial industry to use the electronic signature as a key component in fulfilling their mandate. Furthermore, paper records can easily be altered, damaged, forged or even lost leading to fraudulent activities that can otherwise trigger hefty regulatory fines and expensive lawsuits. With electronic signatures, financial institutions can safeguard the integrity of their documents through traceable identity verification measures.

3. Minimizing costs

Electronic signature financial management systems help financial organizations to minimize costs effectively. Investing in an excellent electronic signature solution may require substantial investment but it also comes with long-term cost savings solutions for them. Whilst paper is deemed as relatively affordable, printing billions of pages every year can be an extremely expensive affair in the long run. Organizations have in the past been incurring substantial expenses adding photocopying, printing, labor and mailing costs into their daily operations. Retaining paper copies of fully signed documents without using digital archives can be a tricky affair for most financial institutions. In most cases, such organizations are forced to invest vast resources and time into compiling, filing, printing, storing, audit trailing and even disposing of documents in a secure manner. Luckily, the advancement in technology has made things better for organizations. Going paperless eliminates the need for robust physical files, security costs and document repositories. Through e-signature solutions such as eSignly, financial firms can archive documents digitally on their servers or private cloud systems thus cost-saving on storage, expensive lawsuits, and hefty regulatory fines for non-compliance.

4. Increased productivity

Another benefit of using eSignatures for financial services agreement is that it significantly boosts productivity. Paper documents are usually time-consuming and tiresome which can have a negative impact on productivity. Sending paperwork to and fro can even take days or weeks to get things done. The beauty of electronic signatures is that they drastically minimize time wastage by making it possible for all relevant parties to sign crucial documents electronically in a simultaneous manner irrespective of where they are. This way, financial institutions can successfully accelerate their productivity by eliminating long, cumbersome and complicated documents-processing processes that interfere with their operations. Instead of wasting precious time getting documents signed manually-signatures empower financial organizations to utilize their time well-building customer trust, loyalty and relationships that can benefit their businesses.

5. Compliance

Banks and other financial institutions are governed by certain rules and regulations. As a result, they are expected to abide by them at all times without failure. Both investors and clients expect their personal information to be handled with the utmost confidentiality to stop them from landing in the hands of fraudsters among other criminals. To be compliant with the set standards, these institutions are required by law to protect their customers’ documents, legal records and investment authorizations with everything they’ve got. To avoid attracting hefty fines for non-compliance, banks are turning to electronic signature software solutions such as eSignly to provide assurance and trust for signers as required by the governing regulations. With electronic signatures, compliant institutions can effectively provide well-detailed audit information on signers including time and precise dates of signing, authentication mechanisms, applied signatures, legal notices and used IP addresses.

6. Improved transparency and Customer Loyalty

Transparency is everything in the financial sector. Customers need to be constantly reassured that they are doing business with the right financial institutions. With the help of electronic signatures, institutions can easily keep track of all the signing processes including sending reminder emails to all involved signers. Such efficiency and transparency lead to greater customer satisfaction. Resultantly, organizations can focus their attention on building better relationships with clients and partners by eliminating all complications. In addition, financial institutions are able to serve their clients better fostering customer loyalty in the process.

Conclusion

In conclusion, using electronic signature solutions such as eSignly comes with many positives for financial institutions in terms of simplifying processes, building customer trust & loyalty, increasing revenues, minimizing environmental impact and even providing job opportunities for the Millenials within the industry.

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