Why Should Banks Begin Enforcing E-Signatures in 2019?

29 May

The business case of getting banks into the business of acquiring the best s-Signature solution for banking and digitizing the branch network is now stronger.

Even though banks are downsizing, their migration to the mobile and transactional banking brings in the aspect of secure transactions.

Despite all these developments, the bank is still a destination of choice for activities such as account openings, retirement planning, and mortgage negotiations. Therefore the bank digitization strategies must provide a differentiated experience, seamlessly connect to other channels, and not forgetting excellent customer service. E-Signatures solutions for banking & finance industry underline all these ideas. Most banks still associate e-signatures with self-service channels, but the audit trail always points to the branches as the source the most significant ROI.

Reasons Why Banks Should Use Electronic Signatures

E-Signature is a system or software that allows signing of documents electronically eliminating the need for physical signatures and paper trail, allowing banks to digitize paperwork. Something thing like the signature internet banking is legally acceptable in the majority of countries, and its popularity is increasing day by day.

Just like in the manner, we use the physical signature; E-signatures in banking does not have any specific target audience. Everyone needs to put his or her name on a document at some point in life. Here are some of the reasons for using digital signatures in banking.

1. Speeds up Workflow on Lower Levels

It is highly convenient and timesaving to use electronic signatures to submit taxes, applications, returns, appeals, and other documents that need to be directed to the state structures.

2. Secure Online Banking

The high levels of security provided by the e-Signatures solutions for banking, some branches would recommend the use of the internet or mobile banking using e signing. This electronic service eliminates the risk of signature manipulation or abuse, which even makes it a mandatory requirement for certain active operations, like online payments. Besides, it gets quite handy when a single e-Signature is used with multiple different payment systems.

3. Secure Communication

Signing your correspondence and sending it with an e-Signature solution like e signature internet banking will protect the communication by intercepting all attempts to break it down. The use of encryption algorithms used within such applications will make your contracts secure, ensuring that they remain confidential and intact.

4. Optimizing Workflow at the Corporate Levels

Equipment maintenance, printing, and delivery of papers can add up quite sizeable when brought to a corporate scale. Using an e-banking solution reduces the financial burden and time spent on maintaining work progress. This leads to freeing up of resources for other crucial tasks like:

  • Renewing and signing new contracts with partners, client, and contractors
  • Help in the submit ion of tax returns, insurance documents, etc.
  • Submitting civil and labor contracts, VAT registers and VAT returns
  • To issue electronic invoices, etc.

5. Specialized Signatures

Banks and other financial institutions utilize the best e-Signature solution for banking to get unique services like certain industries and companies use e-Signatures for different specific purposes like:

  • Authenticating data through the server
  • Protecting E-mails
  • Encrypting and decrypting data
  • Authentication in Virtual Private Networks (VPN)

6. Developing Goodwill with the Clients

E- Signatures in banking are modern, fast, intuitive, and eco-friendly answer to the infamous problem of complex bureaucracy and time-consuming document filling in business. Banks that offer such convenience to clients earn extra points of approval and their general goodwill in banking services.

7. Characteristics of E-Signatures

It takes more than just being able to put a picture of a signature to a form to qualify for being considered a digital signing solution. The E-signature in banking must also:

  • Allow multiple users to work with the same contracts on various devices and platforms
  • Feature reliable security measures, e.g., data and traffic encryption
  • Track status of the document and alert clients when their action is required
  • Offer comprehensive role management for internal and external users (signees, spectators, etc.)
  • Feature robust document creation and storage options

Overall, electronic signature technology is the perfect example of a small thing having a significant impact. E-signature is not the kind of improvement that will push the company in the limelight, but once you try it – you will never want to go back to old-fashioned physical signing.

The Take-up of the e-Signature solutions for bank & finance industry is still relatively slow in banking. However, the opportunity for significant cost savings, underlying security, increased global legal acceptance, and the rapid acceptance of cloud and SaaS-based solutions that incorporate the mobile platform technology will fuel continued growth into the future.

Conclusion

For banks to appreciate the reason for implementing digital solutions for banking, they should focus on what the client needs as a priority. By taking a systematic approach, staff responsible for the deployment of digital signatures should break down the technology and work branch by branch.

Many banks are already doing this, and they are already enjoying when their clients appreciate the efficiency within which they deliver their work. Banks should make it mandatory to have e-signature in banking a necessary process for smaller branches. The banks can only offer traditional services if the client refuses to acknowledge the use of E-signatures.

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