Why Are Electronic Signature Solutions Necessary For Banks And Financial Institutions?

Digital transformation has transformed every sector of the economy. The banking and finance sector is one such industry that has undergone a major metamorphosis since the advent of digitization. Being a highly sensitive and essential segment of the economy, the finance sector has experienced a dramatic change with simplified workflows and accelerated transactions, making banking an effortless experience. Electronic signature solutions have further transformed and simplified the operations of financial institutions. 

eSignature has now become an imperative technology for banks and financial institutions. It is now used for every operational task, including opening accounts, depositing money, clearance of loan documents, and withdrawing funds. People no longer have to stand in queues for hours to get documents signed and approved. Electronic signature solutions have carved a niche in safeguarding consumer interests and future-proofing interactions to create a protected framework for smooth transactions. 

This blog is a complete blueprint highlighting the importance of e-signatures in the finance sector and showcasing how electronic signature solutions work. Read ahead to find out!

What is an electronic signature?

An electronic signature, also referred to as an e-signature, is a technological method of signing a digital document. A perfect replacement for the traditional wet-ink signing process, it enables the signer to affix their electronic signatures to any transaction or record digitally without using pen or paper. 

An e-signature is a virtual representation of an individual. Just like its conventional paper-pen signature counterpart, it can:

• Validate the authenticity of a legal document.
• Indicate legal intent to adhere to the provisions mentioned in the signed document.

E-signatures hold the same legal effect as traditional handwritten signatures as long as they adhere to specific requirements, which may vary from location to location. Implementing several security measures complementary to e-signature solutions gives individuals the confidence to sign any legal document at any place with complete confidence. 

Benefits of electronic signature solutions for financial institutions

eSign solutions have played a pivotal role in simplifying workflows and accelerating transactions in banks and financial institutions. Today, the banking experience has become smooth due to eSigning facilities. Everything from loan applications to account openings and facilitation of contracts can be done in a matter of a few minutes, right from the comfort of your home. 

eSignature solutions are necessary to meet the expectations of the current generation of tech-savvy consumers. Top eSignature solutions from emSigner help empower banks by enhancing the security of financial interactions and transactions, streamlining operations, regulatory compliance, and much more. Let us learn the top benefits of electronic signature solutions for banks!

Enhanced document management

Efficient document management is critical for banks as they regularly deal with a bulk amount of paperwork. eSign solutions can integrate with document management systems seamlessly. This facilitates better organization, management, and retrieval of signed documents. Such an unobtrusive integration diminishes the chances of any loss of paperwork and improves operational efficiency. 

eSignature technology also makes digital document storage possible, making it easier for employees to access, scan through, and search for documents, thus reducing the time and effort spent on crucial administrative chores. Such efficiency allows staff to dedicate more time to customer service and less paperwork hassle. 

Streamlined processes

eSignature services benefit banking institutions by streamlining processes. As we know, the traditional banking system involves extensive paperwork, which is both complex and time-consuming. eSignature facilities help digitize documents that enable customers to electronically sign agreements, contracts, and forms without physically coming to banks. This saves time for customers and bank staff, who can shift focus to more critical tasks associated with their jobs instead of running to and from in meeting customers.

Efficiency and transparency

Banks must ensure transparency and efficiency in their services. With the adoption of eSigning services, this can be achieved accurately. Take, for example, the process of loan application is long and tedious and requires signing from multiple authorities. Now, in the case of the traditional signing system, it becomes difficult for the applicant to track the signing progress. However, if there is an eSigning system in use, each person involved in the loan process can track the signing progress with full transparency. 

Moreover, these solutions allow the bank to send the same document to multiple people for simultaneous signing. Also, if any signer delays signing, the solution automatically sends reminders to speed up the process. All these facilities save a lot of time and effort and increase the efficiency of banking services. 

Better customer experience

Customers always prefer hassle-free and seamless interactions while dealing with banks. eSignature solutions prioritize customer convenience by giving them multitudes of benefits, including more manageable and quicker transactions and remote signing of documents, eliminating the requirement for in-person branch visits.

Additionally, modern eSigning solutions come with user-friendly interfaces that make the entire signing process a seamless experience for customers. They are guided throughout the entire process, encouraging them to be your long-term clients.

Security

Security has always been the top priority of financial institutions. Considering this, eSignature solutions offer advanced security features that were unavailable with traditional signatures. With the eSigning platform, you can stay assured of data security as they use sophisticated authentication and encryption measures that protect crucial documents from any kind of exploitation or tampering. 

Moreover, the signers are verified with multifactor authentication methods before the signing process. This implies that the signers have to verify their identity to prove they are the ones they claim to be. Multiple factors are used to verify the signer’s identity, which adds to the security layer of financial transactions, thus safeguarding banks and customers from any instances of identity theft or fraud.

Cost savings

Switching to eSigning solutions significantly helps banks cut costs related to the physical signing of documents. As the dependence on paper is reduced, financial institutes save a lot of funds that would otherwise be spent on printing, scanning, mailing, storing, etc., of physical documents. This is a huge relief for businesses that rely on massive paperwork for transactions.

Above all, paperless banks contribute notably to environmental sustainability. Individuals who support eco-friendly practices prefer working with such banks thus giving a boost to their business.

Improved compliance

Banks always prioritize compliance in light of several regulations governing how documents are managed and stored. Electronic signature solutions are equipped with features that enable easy compliance with legal policies. 

Additionally, eSignature platforms come with comprehensive audit trails that document each step of the signing process. This feature allows banks to showcase compliance during financial audits and maintain clear records of the documents and their signatories. Such a high transparency level is essential in a strict regulatory ecosystem.

Customer loyalty

Banks must provide operational freedom and security to their customers. eSignatures make this possible for banks as customers can access documents and conduct transactions with ease. Such a thing helps improve customer loyalty by building trustworthy and healthy relationships with banks. Customers appreciate the ability to sign documents from any location and at any time, which saves their time and effort, resulting in enhanced customer satisfaction. Also, critical factors like data integrity and authenticity foster loyal customer relationships with banks.

Boosts brand image

Banks using electronic signature platforms benefit from an enhanced brand image as it helps improve customer impression. It makes customers feel valued as such advanced technology improves how banks render services. Plus, eSigning solutions add extra security to their critical data, protecting them from fraud and malicious actors.  

How can banks choose the best eSigning software?

Electronic signature solutions have become a crucial tool for banks and financial institutions. It is more than just a tool. It is a strategic investment that is imperative for any organization's operational efficiency and digital security. If you want to make an informed decision to choose the best eSigning software, then these are the factors you must consider:

Assess your business requirements

Evaluate your business needs, goals, and objectives before choosing an electronic signature software. Assess the following aspects:

• Transaction volume - As banks deal with a colossal volume of documents that need to be signed on a daily basis, it is recommended to opt for a scalable solution with a strong infrastructure meant for managing a huge number of signatures.
• Integration capacity - Analyze which software has the best capability to integrate with all your existing software. emSigner is the top eSigning tool that easily integrates with all kinds of HR, CRM, financial, and legal tools without posing any complexities. 

• User experience - You must opt for a flexible solution that must be intuitive for internal as well as external signatories. This cites the need for a solution with a user-friendly interface, or it can hinder the bank's easy adoption and efficiency.

Evaluate compliance and certifications

Opt for platforms that are inclined towards comprehensive compliance. Ensure that you finalize the solution that features internationally acclaimed certifications such as:

• ISO 27001 for management of data security
• GDPR for data protection
• CCA India compliance for eSignatures
• SOC 2 Type 2 

Lastly, see that the electronic signature solution you sign up for provides detailed, tamper-proof documentation of each signature for every transaction, as it is critical for regulatory and legal requirements.

Compare ratings and reviews

It is never a great idea to solely depend on vendor marketing. Go through comprehensive reviews from reputable technology evaluation platforms such as Zapier, TechRadar, and Gartner that provide unbiased ratings and reviews based on reliability, usability, and customer satisfaction. 

While evaluating feedback, analyze the pattern for each software. See if there are consistent complaints regarding technical glitches, customer support, or any other red flag. Likewise, see if any solution has consistently high ratings for features likfke speed, ease of use, integrations, etc. Those are the best and most reliable options that you can consider buying.

Never make a hasty decision while deciding on an electronic signature solution for your financial institution. Invest time in exhaustive research, and you must request demos. You can opt for short-term pilot programs before shifting to a long-term commitment. 

Bottomline

eSignature tools have automated the banking and finance sector for good. It was a huge relief during the pandemic when traditional wet signatures were impossible. eSigning became a lifeline for the banking industry by ensuring business continuity. 

If you are looking for a reliable and robust eSigning solution, then emSigner is your best bet. Our premium solution offers advanced document signing and management features that also help boost conversions and strengthen brand image. We ensure legal compliance and speedy services with continuous customer support. 

With emSigner’s advanced electronic signature solution, you can keep away from unnecessary delays in workflows while facilitating complete approvals and transactions more efficiently. Also, we foster easy and automated client onboarding facilities for greater customer satisfaction. 

If you want to take your banking services to the next level, contact our proficient team at emSigner today!