The finance industry to improve its services by introducing paperless banking is implementing infrastructures to support e signatures for financial services. From simple banking to loans, insurance, mortgages, policies, etc. are part of the international laws that govern the use of digital and electronic signatures in the financial sector.
This blog covers the analysis of the possibility of using electronic signatures in the finance industry by looking at how it works. The finance industry handles a lot of paperwork add that to the fact that they have branches and banking agents.
The competition in financial services means that banks have to find a way of hanging in there. That explains why digitization is replacing processes that demand the use of papers, and that is how electronic signature for financial services comes into play.
The Benefits the Finance Industry Stands to Gain by Using Electronic Signatures
- E Signatures Displaces Paper Processes
The use of electronic signatures and digitization of documents allows financial services to handle their processing faster. Fast processing means saving on stationery and printing costs, making it easier to handle storage and retrieval of documents.
The reduction in paper handling means that firms can now shift their focus to urgent matters like looking for new opportunities and serving clients better.
- Enabling Relationships with Clients
The speedy transactions facilitated by sending electronic signatures files to clients make it easy to access services. When financial institutions that use electronic signatures for financial services spend most of their time filing paperwork, they lose on relationship building with their clients.
Both the client and the institutions save on time needed to locate files.
- Security and Compliance
The e signature for financial services helps the financial institutions have an added layer of security in compliance with industry regulations. Firms that use other advanced layers of security such as biometric verification can use audit trails to track and manage paperwork.
Electronic signatures considered valid and can pass as legally admissible signatures. Compliance means the business is protected against fraud.
- Improvement of Sales and Operations
The reduction of turnaround time due to the less handling of paper documents means the sales and operation departments can work to improve their respective goals. Sales should focus on bringing in more customers and operations to maintain a steady flow of work.
What is leading to Change to Using E Signatures 1. Working across Documents
Documents of different formats such as PDF, Word, JPEGs, pages, etc. can work with electronic signatures.
The signed documents are sent via a computer, tablet, or a phone from any location and at any given time.
2. Everything Takes Place in Privacy
One of the universal characteristics of electronic signature financial services is the self-signing feature. Both parties have the opportunity to sign even when not present.
An institution sends the documents that need signing to those who cannot make it for a meeting.
The remote signing feature enables institutions to handle only documents with the client’s signature, thus reducing office workload.
3. Integrating Cloud Storage
With e signatures for financial services, importation, and sharing of documents between cloud storage service like Box, Google Drive, and Dropbox. This makes sure that an end-to-end electronic workflow continues.
4. Security and a Legally Binding Signature
Many jurisdictions across the world accept documents signed using an e signature. The implication here is that they are legally binding as handwritten signatures.
The advantage of using the electronic signature is the audit trail it leaves behind. Sent signatures via electronic media are protected by end-to-end protection.
More security comes in the form of passcodes and fingerprint authentication to help secure the documents and make it accessible only to one particular person.
The Signatures Work Well Across Applications
Import or export signed documents within applications you use every day. These typical applications include Gmail, CRM applications, Box, etc.
5. Reduced Environmental Impact
With reducing over-reliance on papers for most work in the industry means, the use of electronic signature financial services helps the institutions reduce their carbon footprints. Reducing the negative impact on the environment means the firms meet their community social responsibility targets.
With all these benefits in mind, it now becomes easy to understand why financial institutions should adopt the use of e signature for financial services.
Choosing and E Signature for Your Business
Now that the benefits of electronic signature for financial services, all financial institutions should look for the following pointers:
- What are the fundamentals that the e signature should cover? Look at things like how easy it is for clients and staff to access and interact with it.
- Analyze the available templates on offer and if possible test it within the firm to confirm if it aligns with production processes. What are the customization options that are available on the selected templates?
- What is the possibility of branding the e signature? Due to the increasing competition in the financial sector, branding is a necessity
- Look at all possible impacts of introducing the software into the business processes
- Since cost will always be a factor, and that is why companies should look at the cost effectiveness of introducing electronic signature for financial services.
The gradual change from pen-paper signatures, which is not flexible on many fronts, is driving lenders to adopt digital signing, which promises more efficiency and quick turnaround. Introducing the electronic signature for the financial industry brings in more gains than loses through reductions of risks, increased productivity, better rates, and an improvement in all aspects of client service and business operations.
For more information:Make an Inquiry about this report HERE!