How Electronic Signature Can Help Banks To Move Ahead
Electronic signatures are taking the global market by storm. In 2019 the global digital signature market accounted for $1,534.8 million. The global e-signature market is also expected to increase up to $23.949.7 million by 2030. The business driving factors include the rising demand for biometrics equipped with digital signatures. The introduction of electronic signatures has taken the various business sectors by storm, and the banking sector is no exception to be influenced by it.
The banking sector has always been at the forefront of technology adoption globally. For better experience and convenience of the customers, banks are constantly digitizing their processes. The use of electronic signatures in the banking sector increased during a pandemic when wet-signature transactions became impossible.
The International Chamber of Commerce in April 2020 directed governments to “take emergency measures to immediately void all existing legal prohibitions on the use of electronic trade documentation” This was revolutionizing moment in the banking sector.
In the ICC statement, ICC Finance for Development Director Olivier Paul stated, “With many banks unable to handle trade finance paper documents in person due to COVID-19, there is a growing risk that the underlying trade in goods could be disrupted.”
This move revolutionized trade in the banking and finance sector and gave rise to trustworthy and reliable electronic signature companies to make e-signatures transactions efficient and easily accessible to their customers.
Table of Content
Benefits of electronic signatures for the banking sector
Improves turnaround times and streamlines internal processes with automation
Automation of signing processes streamlines one of the most tedious tasks in the banking sector: Getting signatures from different departments. The use of electronic signatures makes it possible to sign multiple documents with a single click, reduces paperwork, and increases the overall productivity of the bank. According to Forrester, “there will be 85% improvement in business productivity with the use of e-signatures.”
Reduces clutter by centralization and smart categorization of document
Banks deal with various kinds of documents daily and therefore need to have an organized paperwork process. Electronic signature companies offer clutter-free and easy to retrieve labeled documents, making the paperwork storage and retrieval hassle-free and cost-efficient. Research also suggests that “55% to 78.62% overall savings is possible for businesses migrating to e-signature apps from paper, taking into account material, administration, shipping and subscription costs.”
Validation of Data
Many documents are collected from bank customers for loan processing, onboarding, and mortgage. All these documents are required to be validated. Hence reputed electronic signature companies like MSB offer OCR features for validation processes.
Security assurance is prominent in the banking sector as these operations are very information sensitive. Electronic signature assures high security as the possibility of theft, damage, and forging is possible when dealing with a high amount of paperwork. A study conducted by AIIM suggests “approximately 81% of business users consider e-signatures as the most essential in the legal and security aspects of their daily operations.”
Top electronic signature companies ensure high security and safety of the documents. e-signature providers like MSB Docs offer tamper-free protection and audit trails, along with IP address tracking.
Improves Customer Loyalty
Banks need to provide operational freedom to their customers. Electronic signatures enable the banks to offer banking freedom to the customers. It also provides convenient, easy, and personal access to documents and transactions.
The Ombud survey suggests, “500% increase in customer loyalty is possible with e-signatures.” These services allow customers to build a healthy and trustworthy relationship with their banks. It ensures the loyalty of customers towards the banks.
Choosing the right e-signature service provider:
Electronic signature companies provide hassle-free ways to sign and send documents. The software also stores customer signatures in the document management system of the bank. It allows an easy validation process from any location, thus creating a unique banking experience.
However, while considering the prime benefits of e-signatures for your day-to-day banking processes, it also becomes essential to choose the right electronic signature service provider. A reputed signature company offers the following features with their e-signature software:
Electronic signature companies provide software that can integrate with the existing applications available with the banks. This way, the documents are readily available for signature without wasting any time to import them. It also eases the process and makes it efficient.
The software must be sufficiently intuitive to allow customers to sign the documents with a stylus. The software must allow easy access to the paperwork and sign them electronically. It must also offer the assurance of compliance with regulations of the banking sector.
One of the essential features while choosing an electronic signature company is the assurance and security of data. The company must provide software that acts as a vault for the information so that the data stored in the documents is safe and secure. Leading companies like MSB Docs comply with high-security standards such as SSAE 16, ISO 27001, Privacy Shield, and EU-US. Their software also provides encryption of a high standard protocol whenever you sign or import documents and offers audit trails.
Electronic signatures must comply with global guidelines and laws like the IT Act 2000 (India), FIPS 140-2, ESIGN Act (USA), eIDAS (EU). They must also comply with EMA, HIPAA, and CFR Part 11.
Electronic signature plays a prominent part in automating the banking sector. At the time, when the word wet-signature seemed impossible during the pandemic, e-signature solutions kept the banking industry running. The implementation of e-signature enhances the productivity of banks by accelerating the sales cycles along with high security and assured legal compliance. Choosing a leading e-signature player like MSB with expertise in banking and finance sector automation can help banks move ahead.