When new technology enters the market every smart organisation irrespective of the sector makes an effort to understand the technology and ponder over its integration into the existing system.
Digital signature in banking is one such solution which has brought many positive changes in the banking sector across the world. Just like the esignature solutions for banking, other sectors have started exploring this technology too. If you're one such organization, then this article might interest you. Let us start to dig deeper and understand all we could about the digital signature software or solution.
What are digital signatures?
Electronic signatures are like digital “fingerprints” that the singer leaves in the electronic document. esignature solutions associate this digital document to the singer through encryption. Electronic signatures use PKI that is Public Key Infrastructure to provide the high standard security to the transaction and get it a universal legal acceptance.
How do digital signatures work?
Just like traditional forms of signature/wet ink signature, Digital signatures are unique to every signatory. Digital signature solution providers have to adhere to the specific protocol named PKI. It demands a solution provider to use a mathematical algorithm that ultimately generates two keys. One key is private, and another in public.
When a signatory electronically signs a document the signature is created using a private key which is secure and unique to the signatory only. The mathematical algorithm creates data matching the signed document which is called a cryptographic hash which encrypts the data. This encrypted data is nothing else but a digital signature. This signature gets connected to the document along with other details like the time at which the document was signed day and date. If any change is made in the content of the document without the consent of the signatory then the digital signature becomes invalid. This adds to the safety of the signer.
Let us take an example. Suppose A signs a contract to sell a product with her private key. The buyer receives the contract. Along with the contract the buyer also receives a copy of A's public key. If this public key fails to decrypt the signature, then it means that signature is either not made by A or is changed after A made the signature. In both cases, the signature will be considered invalid.
In order to save the integrity of the digital signature, PKI demands that the keys are generated, shared and saved in a secure technological environment.
Benefits of digital signature solutions
Organizations are readily moving away from the use of paper and pen to sign important documents. They are replacing the traditional way of signature with an electronic signature through esignature solutions.
As per one market research report, the worldwide esignature solutions market is estimated to increase at a positive rate of 32% per year. From $663 million in 2016 to the market is expected to reach $2.66 billion by 2021. Esignature software features are used for their speed, security, accuracy and safe storage.
Organisations can save a huge amount of money by avoiding paper-based signing processes and accepting paperless signatures. This is possible as when you adopt electronic signature, you do not have to spend on ink, postage, courier, papers, printing, faxing etc. So in the kong run, the organization actually gets to save a lot. Apart from the direct cost saving, organizations make some indirect savings by saving time on looking for lost or misplaced documents, filing and storing paper documents and archiving them carefully, etc. One AIIM research states that among 25% of the digital signature users have experienced positive ROI within three months of adopting the digital signatures.
Positive Customer Relationships
Most of the population in the world own smartphones. People are relying on technology like never before in human history. They are using their mobile devices for almost every activity right from shopping, studying, doing office work, watching movies and even giving exams. If you wish to attract these sophisticated target customers, then you need to use modern and technological e sound methods to deal with them. esignature solutions help your customers to make signatures on the documents without having to download any app or software. This actually adds to the user-friendliness of the solution. Customers can sign and share contracts with any internet-connected device, at any time from anywhere.
Get Quicker Payments
When you use digital signature solutions the turnaround time of the contract becomes shorter. This means users can access the document quickly and make the signature and share it immediately back to the creator within a few minutes. This saves time. The creator of the document shares the concerned document to all the related parties in one click and all the parties can perform their respective actions and send it back to the creator (even simultaneously) without waiting for another party to sign. Esignature software features smoother the signing process. This simply means, you can close the deals quickly and the subsequent payment can be received quickly too.
Track The Status
With a signature solution, you have to wonder if your signer has received the document in time or not. Digital signature software provides you with an online dashboard which helps you track the status of the document. You can also receive real-time notifications when the document is received by the signer, when the document is opened, when it is signed and when it is sent back to you.
Increase Document Accuracy
Human errors are part and parcel when you are dealing in a traditional way. However, in the document signing process, you cannot afford to make even a small error as it might make you start all over again. Hence, electronic signature solutions are the best way to perform signatures. Here, you can remind customers or notify them when they forget to fill any box on the document. You can mark some boxes as mandatory to make sure you get the required information. One message can be out at the submission stage where you ask the signer if all the information filled is right. This leads to 100% accuracy.
E-Signatures Minimize Risks
If your organization deals in confidential data or sensitive information, it is important to ensure it's safety. E Signature software features make sure your documents and data are cancelled with utmost safety and are stored at the safe place. Digital signature solutions use a solid encryption system to make sure that third parties do not get access to the documents without consent. Digital documents are easy to store and maintain in the archive as opposed to the later documents which are delicate and stand a higher risk of getting lost or damaged. Professional esignature solutions give you complete control over the document workflow.
Waiting is over with esignature solutions. Users no longer have to wait for another party or manager. Each party can perform its task separately as per their comfort within the given time. The motto is to save time, effort and ultimately save on signing documents. Geographical distance no longer matters. The process that used to take days, sometimes weeks, can now be performed in a few minutes or hours.
With a reduction in errors and delays, electronic signatures offer better workflow efficiency. Managing and monitoring documents becomes possible with minimum effort and time. Esignature solutions actually make the signing process faster.
Better Customer Experience
Here users have the convenience of signing documents from wherever they are using their mobile devices. Sales officers do not have to wait for the client to come to the office, the sales team can share the document or contract to the client and he can act on it from his place. This solution has become even more important in the backdrop of the present pandemic which demands us all to follow social distancing. Here, the customer has the freedom to be anywhere across the globe and he can still engage with the company, make purchases, make sales, accept and make payments.
When it comes to signatures, the validity and security of the process are important. Digital signatures avoid or reduce the risk of forgery duplication, theft or any other fraudulent activity. Digital signatures make sure that the singer is verified and legitimate. Private and public keys are generated to keep a check on the authenticity of the signature.
Apart from the above-mentioned advantages, esignature software features also offer:
Legal validity to the document. Professional solutions are in compliance with the domestic and international regulation that govern digital signatures.
Eco-friendly solution. No use of paper and reliance on digital transactions and payment leads to paper-less activities. Online Signature Pricing is also very less which makes it cost-effective too.
It is not a brainer how digital signature solutions help individuals and organizations across the world to perform with boosted efficiency. The benefits we have discussed in the article reflect on the importance of esignature solutions and changes that they can bring to the organization. In the fast-paced, digital world, digital signature solutions are the best.