The Importance of E-Signature in the Financial Industry

The Importance of E-Signature in the Financial Industry

Electronic signature solutions have been empowering business industries across the globe. More than accelerating their digital growth by automating processes, electronic signature solutions enable them to carry out their operations securely and with less manual effort.

The financial sector is one of the major business industries that continues to see and experience first-hand the upsides of adopting electronic signature solutions.

Transactions in the financial industry must be private, safe, and exclusive only to involved parties. Moreover, in every transaction, agreements, contracts, and other forms of documents are fundamental; thus, the obligations to safeguard the information of individuals and to provide trouble-free and accessible transactions are of paramount importance.

Those that belong in the financial industry and have adopted electronic signature solutions continue to see long-term advantages. These advantages result in consistent growth, efficiency, and cost-effectiveness. 

From improved client and document management to streamlined workflows, the use of electronic signature offers high-level benefits to users. Here are the major benefits of electronic signature in the financial industry.

Reduce Costs

The financial industry is a big contributor to paper waste. In general, the main expenses associated with paperwork in the sector are the costs of acquiring the papers, printing and photocopying equipment, and postal services. These costs may seem negligible when looked at on a per transaction basis, but the costs add up over time. The costs even increase when errors happen.

By utilizing electronic signature solutions, the costs associated with paperwork become almost non-existent. Manual paper-based processes become digital processes, particularly signature workflows. You no longer need to print lengthy documents as electronic signature platforms provide online document editors that allow users to fill out and sign documents.

Storing paper copies of transactions require filing cabinets. These filing cabinets have costs. Electronic signature platforms come with online storage where users can store and manage electronic documents. Going paperless removes the need for bulky cabinets for physical files.

Enhanced Security

Companies in the financial sector need to provide safe and secure services. It is a no-brainer move for financial institutions and organizations to invest in solutions that prioritize the privacy and security of their clients.

Embracing digital solutions for financial companies means adding a thicker layer of security to processes. As clients need the assurance that they are protected twenty-four-seven, companies can prove their commitment to doing so by utilizing a reliable and secure electronic signature application.

Due to physical documents being delicate and prone to tampering, fraudulent activities are inevitable. Moreover, financial documents contain sensitive personal and financial information; criminals target them often. Electronic signature solutions provide a more secure way to transact. 

While physical documents can get stolen, lost, and misplaced easily, electronic documents stored in the online library of electronic signature platforms are secure and only accessible by authorized individuals. When documents are accessed or changed or updated, all activities are recorded in a digital log and the owners receive notifications.

Electronic signature applications use Public Key Infrastructure (PKI) technology to restrict unauthorized access.

It is also worth mentioning that enacted laws on electronic signatures, including the Electronic Signatures in Global and National Commerce (E-SIGN) Act of 2000 and the Uniform Electronic Transactions Act (UETA) of 1999, granted electronic signatures the same legal status as traditional ink-on-paper signatures. Thus, electronic signatures are legally binding in the United States.

Customer Satisfaction

The faster, more convenient, and hassle-free financial transactions are, the better for customers.

Electronic signature solutions utilize advanced technologies not only for security but also to improve the service that clients get. As financial institutions integrate electronic signature solutions into their processes, they emphasize their intention to improve the way they deliver their services.

By going paperless, eliminating the use of papers, customers can now complete transactions even only using their mobile devices. They no longer need to fill out and sign documents manually; thus, the time-consuming processes become easy tasks to accomplish.

Electronic signature applications fast-track transactions and streamline documentation and signature workflows, just the way every client wants when dealing with companies that handle their finances.

Efficient Processes

Financial institutions that fail to utilize electronic signature solutions do not only fail to get ahead of the competition but also to upgrade the way they manage and do their work.

By adopting electronic signature solutions, delays that impede the entire process of financial transactions become almost impossible to occur. On the contrary, it even speeds up transactions, as it offers simpler procedures for completing and exchanging documents.

Manually doing the paperwork takes time due to the processes it involves, including printing and transmitting documents. With electronic signature applications, the steps that could take a few days or weeks to accomplish can be done in just a few minutes or hours.

Electronic signature applications offer fillable financial documents, contracts, and agreements, that financial institutions can use instead of creating documents from scratch.

Electronic signature solutions in the financial industry offer opportunities to financial institutions and organizations to streamline workflows, save money, fast-track transactions, and protect themselves and their clients, among other advantages. By going paperless and embracing digital solutions, they can remain competitive in the fast-changing business environment.

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