Digital banking methods are now used by millions of people globally, due to its convenience and saved time. E-signatures are a big part of why digital banking works so well. Read on to discover why!
E-signature, as defined by the US Federal ESIGN Act, is an "electronic signature, which can be an electronic sound, symbol, or even process, associated with a contract or any other record and adopted or executed by a person with the intention of signing the record.”
Digital banking plays a vital role in today’s fast-paced world because it offers easy and convenient access to all of your banking needs. E-signature technology provides a secure yet convenient way for clients to sign legally-binding documents and send them back in seconds without wasting time, paper, or money. E-signature can increase the efficiency of online banking in the following ways:
• Saves Costs
It has been reported by Bank Systems & Technology magazine that banks spend millions annually to correct, retype, rework, and authenticate signatures on their business documents. With e-signatures, financial institutions have eliminated almost every type of error related to client signatures. Also, e-signatures accelerate the workflow as they can be incorporated easily in the automated document process, thus saving time, cost, and manpower.
E-signatures have also cut down the costs of large manual processing, data typing, and paper storage by getting rid of heavy paper documentation. All data is now digitally stored in e-signature cards, occupying minimum space on the bank server. This makes data retrieval secure and efficient. All overheads associated with creating, managing, storing, and retrieving the paper signed documents are eliminated.
• Saves Time
E-signatures increase banking efficiency by cutting down the document workflow from weeks to minutes. Using web and mobile browsers that are specially encrypted by the bank or financial institution, you can process documents very quickly without compromising their security or compliance standards. Documentation and forms that used to take up to 10 days to be processed, can now be processed within 24 to 48 hours with e-signatures. That’s quite a difference.
• Expands Reach
E-signature technology offers multiple ways of gathering signatures, like click-to-sign or scripted signatures drawn on mobile screens, without the cost of opening and staffing new branches globally, or spending money on extra resources.
• Improves Customer Experience with Speed and Mobility
These days, very few clients choose to print, sign, and scan their documents to send them back to the bank. It is a tedious job. That’s why speed and efficiency can make or break a client relationship.
Using e-signatures, which lets you sign a document with just a click to complete a documentation process, from any place, any time without compromising data security and maintaining compliance with the law speaks volumes about a bank’s working efficiency.
• Improves Sales
Adopting e-signatures eliminates the need to print and send documents to clients via post, thus saving selling time. A client, without coming to the bank, can process different documents within minutes instead of days.
E-signatures are a huge benefit to the online banking industry, since it brings with it cost savings, security, global standardization, and the incorporation of mobile technology. What are your thoughts? Let us know in the comments below!