eSignatures - Streamlining Legal Document Management

Gone are the days when companies had to shuffle between myriad documents. Stacking them in cupboards and finding a particular document at times of need was no less than finding a needle in a haystack. Ever since the digital revolution, physical documents have taken a backseat. Today, we have online documents that are easy to store, locate, and access as and when required. Also, with the abundant online tools available for document management in large-scale organizations, handling official contracts has become easier. eSignature is one such powerful tool that has emerged as a game changer in document management.

Talking of the legal industry, electronic signatures are great catalysts for reducing signing time, improving data security, and facilitating team workflow. eSignature facilitates quick and efficient document management for all commercial agreements, contracts, and much more. It helps eliminate paperwork and all the hassles associated with it. This blog is a roadmap that will take you through the concept of eSignatures, its implementation in the legal sector, how you can maximize their efficacy in your work, and many other things related to eSignature tools. You will also learn the differences between eSignatures Vs. Digital signatures so that you get a clear understanding of both these notions. Let’s go!

What is an eSignature?

eSignature is the technology that allows the digital signing of documents while maintaining each signature's authenticity and legal integrity. This method of online signing ensures that the person signing the document is who they claim to be and the document's content remains unexploited throughout the signing process. 

eSignatures have gained legal recognition worldwide, ensuring their legal validity in almost every contract and commercial agreement. However, the signatories must be certified and adhere to stringent policies and regulations to illustrate their legality, compliance, and validity. 

eSignatures are a time-saver and enhance the security and traceability of signed documents, contracts, and agreements. In the fast-paced world of today, where companies have to deal with countless tasks in a short span of time, eSignatures greatly help maximize workflows and optimize available time while eliminating the risks related to conventional handwritten signatures.

eSignature vs. Digital Signature

Usually, the terms eSignature and digital signature are used interchangeably. However, there are technical differences among them. The electronic signature is a broader term encompassing all techniques of signing an online document, whether it is clicking on a checkbox for approval or manually drawing a signature on a screen. Its chief inclination is to expedite document approval and ensure its security based on the kind and context of signature used.

Digital signature, on the other hand, refers to a particular type of eSignature that utilizes cryptography for the verification of the signer’s authenticity and the security of the document. It is considered more secure because it generates a distinct seal that demonstrates the integrity of the document after the completion of the signing process. 

Is a digital signature more secure than an eSignature?

The answer is yes, they are! Usually, digital signatures are used in highly confidential documents that demand advanced security, such as legal agreements and financial contracts. 

Automating legal document management

Legal professionals cannot escape from paperwork hassles. The conventional style of document management heavily depends on manual processes and physical files, which hamper efficiency and collaboration and pose security threats. 

The significant challenges related to manual documentation include:

Risk of error

• Manual mistakes - Manual document handling and data entry often lead to misfiling, typos, and lost documents, affecting client trust and case results.
• Missed deadlines - The paper trail can result in failure to meet crucial deadlines, causing missed opportunities and penalties.
• Compliance failure - It becomes tedious and prone to error when keeping track of constantly changing regulations and ensuring document compliance. 

Inefficiency

• Time-consuming tasks - It takes much time to manually file, search, and retrieve documents.
• Version control confusion - It creates chaos whenever there is a need to track several document versions across multiple storage locations. 
• Restricted accessibility - It becomes impossible for remote team members to access physical documents, thus obstructing collaboration and flexibility.

Costs 

• Storage - manual documentation leads to high costs for leasing storage space in storage facilities for the long term.
• Shipping - The costs increase when hard copies of documents have to be sent for signature via courier or postal mail.

Security concerns

• Physical hazards - There is always a risk of theft, fire, floods, and other natural disasters that can quickly destroy or damage physical documents, sabotaging critical data and client privacy.
• Restricted audit trails - Tracing accountability and document activity gets complicated with a manual documentation system, hampering risk management activities.
• Unauthorized access - There is a constant threat of unauthorized access to paper documents, which causes privacy violations and data breaches.

Business development risks

• Impact on client acquisition and retention - Law firms rely primarily on referrals and reputation for attracting new clients. Failure to meet responsiveness and efficiency expectations can badly influence a lawyer’s capability to build a loyal and thriving clientele.

The above challenges foster a frustrating work culture for legal professionals. The limitations of the paper-based documentation system are detrimental to the growth of a legal business.

Electronic signatures are an efficient solution for legal document management. Here are its noteworthy abilities:

• Easily accessible documents - It facilitates direct document access, making file retrieval possible from any location and at any time.

• Improved security - Digital tools like electronic signatures diminish the risk of manipulation and fraud while safeguarding the integrity of online documents. This is not possible with the manual documentation system. eSignature solutions use access controls and encryption to safeguard critical data, maintain client confidentiality, and adhere to regulatory compliance. A secure link is used whenever documents are shared on the eSigning platform for signing. The team members must authenticate their identity via the link before attaining document access. Authentication is done via single or multi-factor measures per the risk level.

• Automated workflows - Electronic signing software helps eliminate repetitive chores such as contract routing and approvals, saving time for critical and strategic tasks. Such automated workflows greatly help save time and improve operational efficiency.

Digital Transformation with eSignatures

Law firms and legal professionals have welcomed digital interactions with open arms. The digital revolution has accelerated the legal industry and will create a more intense impact on client collaborations in the forthcoming years.

The remote work culture has picked up momentum in the last few years. With this, clients prefer remote interactions, making it easier to sign contracts and agreements digitally. The advent of electronic signing solutions has made this possible and given legal clients and professionals the convenience they seek. 

Notarization is another aspect of the legal industry that has transformed with the digital shift. Although new, remote online notarization gained popularity post the pandemic. To adhere to social distancing, notary services have started being provided online, and the trend has been preferred ever since because of its heightened convenience, accessibility, and security. It goes beyond geographical boundaries, fading the need for in-person meetings, thus giving way to online notarization of documents as a quick and secure method. 

Digital notarization not only transcends geographical boundaries but also eliminates the hassles of complex paperwork. It saves time by getting the work done instantly and facilitating the simultaneous signing of documents by multiple parties from different locations. It also ensures tamper-proof documents throughout the transaction process. With strict security-control measures, digital notarization uses identity-proofing options to authenticate the identity of the signers. 

Streamlining Legal Workflows

Just like any other industry, transparency is a necessity in the legal sector. Whether building trust, ensuring regulatory compliance, or granting clear visibility into document activity, eSigning solutions help foster successful legal management. This was much needed in the legal sector, given the traditional manual documentation processes created information silos, blocking access and building confusion.

Advanced eSignature solutions from emSigner can be easily integrated with other existing software such as case management software, document management software, contract lifecycle management software, etc. Such effective integration allows real-time tracking of document status, modifications, signatures, etc. This allows stakeholders to get an insight into the proceedings of the documents, including everything from the signing status to reminder notifications and audit trails. 

Electronic signature platforms provide comprehensive audit trails to offer a verifiable record of every single interaction for the purposes of accountability and compliance. These platforms enable secure logging for each document interaction so that they are searchable and provide a dynamic bedrock for alleviating compliance risks and addressing regulatory needs. Such advanced features not only enhance efficiency but also transform legal workflows. They foster trust and empower legal firms and professionals to navigate perplexing matters confidently. 

Amplifying Mergers and Acquisitions efficiency

Mergers and acquisitions, better known as M&A, usually require massive paperwork. It is a herculean task to coordinate vast volumes of documents and ensure accuracy across all departments and teams. Digital solutions help streamline such critical processes. 

eSignature platforms offer advanced features like real-time document tracking, centralized repositories, high-security, etc., to remove logistical obstacles. These solutions help in quick due diligence, enhanced security, and accelerated closure of deals to ensure accuracy, speed, and control of high-stakes Mergers and Acquisitions transactions.

How do we implement electronic signatures in the legal department?

Integrating electronic signatures in your legal department can transform your work ecosystem, simplifying document management and enhancing security. Here are some key steps to successfully implement eSignature solutions in your firm!

1. Initial evaluation- Timing and scope of implementation

Before you jump into the implementation process of eSignatures, you need to assess certain points:

• Which areas or document types will be impacted by the implementation?
• Which documents take the longest to sign?
• Which tasks experience the most extended delays?

Generally, some documents, such as confidentiality agreements, supplier contracts, and employment contracts, need instant and easily accessible signatures, which means these can benefit significantly from the change. Once you identify such application points, you can develop an effective eSignature implementation strategy customized to your industry requirements. 

2. Choosing eSignature service providers

When you have finalized the areas that require electronic signature implementation, your next step is to choose a service provider that aligns with your organization’s security and legal requirements. Ensure that the solution you opt for is compatible with your existing systems while providing adequate security for data protection and safeguarding the identity of the signatories.

While finalizing a service provider, see that they have integrations for softwares that your firm already uses, like cloud storage platforms, contract lifecycle management (CLM) software, etc. Such support will facilitate easy integration of eSignatures into your existing workflow and allow easy and natural adoption of the solution.

3. Reinforcing internal processes and policies

The efficient implementation of eSignature is based on creating transparent internal processes and policies to strategize their use in the organization. Consider following these steps for a secure and successful implementation!

• Determine the signature type for each document - Define the kind of signature that will be required for each type of document or contract, ensuring that it syncs with the security- level needed. Ensure that the service provider you opt for offers the kinds of eSignatures you require.
• Assign roles and permissions - Clearly define team members' roles, stating who can initiate an eSignature procedure and who is eligible to sign on behalf of the company. 
• Confidentiality - Establish processes for the security of all electronically signed agreements and documents while ensuring that all data protection policies are adhered to.

If you are already not doing so, it’s high time you start using eSignatures in your legal enterprise. It is a driving force for a super-efficient and productive business. Now that you know the concept of e-signatures vs digital signatures, you can easily decide the best option for your organization. emSigner provides electronic signature solutions customized as per your specific requirements. Our range of premium eSigning solutions helps streamline legal document management, cut costs, and keep you ahead of the curve. If you want to discover how our premium solutions can revolutionize your legal team and business, contact our team at emSigner today!