We are living in an era where everything is transforming from traditional to digital.
Every sector in the economy is under digital transformation. One of it been banking sector. The banking sector is essential and highly sensitive.
One of the technological inventions transforming the industry at a rapid rate is the use of a digital signature. The main idea behind the invention of electronic signature for banking was to simplify how financial institutions operate.
A digital signature is a technology with the potential of accelerating growth and speed of financial institutions. As we all know, a signature is a vital necessity in any banking institution. From opening account, depositing money, withdrawing, and any other activity in the banking sector.
To exemplify, imagine how much time people waste waiting for their loan document signed for them to be approved. Think how tedious it is to wait for hours in a line for your bank documents to be signed. Such time consuming, the inefficient and tedious process is the one that encouraging bank to adopt digital signature.
So, what are the primary purposes of adoption eSignature solutions for banks?
1. A digital signature is secure
In recent years, many financial institutions are accepting digital signatures for their advanced securities measures. A digital sign is secure, and it can't be manipulated as the handwritten one. Electronic signature for banking is, therefore, a very effective technique of obtaining signatures.
Furthermore, secure digital signature transactions have contributed to the growth of online businesses. This is because banks can now approve transaction faster, efficiently, and in a safe manner for the online businesses owners. Before the introduction of digital signatures, for you to do any bank transaction, you had to go to the bank.
But with the digital signature, you can securely access your bank easily and faster. In fact, in the next five years to come, the banking digital signature is estimated to grow at an annual rate of 26.5 percent.
This research which was done by p&s market research suggests that the growth will be catalyzed by increased adoption of the digital signature system by financial, insurance, and banking sector.
To even be more secure, banks can adopt public key infrastructure digital signature technology. This technology has higher and accurate individual identification standards.
2. Increased transparency and efficiency
Transparency and efficiency in any banking or financial institutions are ideal. But through the adoption of eSignature solutions for banks, transparency and efficiency issues can be solved.
For instance, the lending process can be long and ordeal process, which then frustrates both the bank and customers. If you are applying for a loan, your application must be signed by multiple businesses and people. Right?
When using the tradition signature, it will be hard for your recipient to know how far you have reached in your signing process. This mostly happens when the agreements to be signed have been sent either via fax or paper.
But when you use a digital signature, there is transparency since the one supposed to sign your agreement can track down how far you have reached in the reaching process.
When using a digital signature, a bank can send the digitally signed agreements to different signer at once. This is because the person can access your agreements with your digital signature. Moreover, if a recipient delays in signing, the bank can send remainders for an efficient transaction.
This means through digital signatures, customers will be able to get quality and efficient banking services. As a result, customers’ satisfaction is achieved.
As it's said, time is money. Right?
A digital signature is an asset that banks can use to improve their portfolios. But how? Through digitalizing their services via esignature for banking.
For example, when a bank is using a faster digital signature, it will be able to serve more customers for a limited period. This means at the end of the day the bank will make more profits compared to one using traditional paper signatures system.
A digital signature is a valuable technology as it can help banks to save a lot of dollars annually. This is because the bank won't spend money on purchasing materials used for writing signatures.
Such costs include printing costs, paper costs, and many others. The money used to cover such expenses can be used on profitable activities i.e. lending to people to be repaid with interests.
5. Centralization of documents
Banks and financial institutions deal with many ranges of documents on a daily basis. Similarly, banks have many branches working under the main branch. For the banks to have efficient and organized documents centralization it needs to adopt the use of the digital signature.
This is because the traditional process is costly and tedious and time-consuming. Digital signature help in documents centralization in the banks as it allows easy capturing of customers signatures.
When a signature is inserted in a document template, it's automatically stored in the document management system of the bank. This means that any branch of a specific bank can be able to access the signature and serve a respective customer.
6. Strengthen the brand image
Digital signature use in banking sector improves customer impression. This is because it makes the customer feel that the bank care for them through adopting new technology that will improve how banks will deliver services to them.
Also, customers will be impressed by the bank, adopting technology that will fight against fraud since a digital signature is secure.
Furthermore, a bank can benefit through the use of colorful and large screens tablet for digital signature. This is possible through messages adverts to display new financial services the bank is offering.
7. Fights with fraud
Use of traditional paper banking documentation signatures is open to frauds. This is because of the cases such as signatures forging.
Similarly, the documents can be stolen, misplaced, or lost. But with digital signature technology, signs secure storage and verification process is a simple task. This, therefore, means that signature frauds in the bank will decline with the use of the electronic signature.
In conclusion, financial and banking institutions have to accommodate the technology evolution like a digital signature as they emerge. Electronic signature for banking is one technology that can improve how financial institutions relate to customers. This will then contribute so much to the growth and success of the banking sector at large.