With the development of technology, e-signatures, also known as electrical signatures and consent forms are increasingly becoming popular as a user-friendly solution to hasten the documentation process. So many industries, including auto finance, banking, insurance, telecommunication, and healthcare are among the top sectors utilizing e-signature solutions. So, if your business is still not making good use of e-signatures, you are missing out a lot.
Traditionally, everything was done on paper, so writing squiggles was the perfect way to authenticate a signatory. But now that we are embracing technology at a rapid rate and most documents are digital, this promotes the use of e-signature technology. After all, these e-signatures do everything that a wet, ink-based signature does, except better. And they are more convenient compared to traditional signatures because of how they allow parties to scrutinize and sign any document remotely from a smartphone or computer. What’s more, most electronic signature services are much more affordable for any budget, so you don’t have to worry if your business is starting out, and you are still on a tight budget. But what is an electronic signature? How can your business use it? And how can it benefit your business? Well, keep on reading this article to explore all of these.
What is an electronic signature?
In simple terms, an electronic signature is basically what its name implies- it is a signature in electronic form. Just like wet signatures, e-signatures also allow signatories to approve or agree with the terms of a document.
How businesses can use e-signature
As mentioned already, several businesses are already using e-signatures. If you have not started using electric signatures, it is time to do so. This is how it works for businesses.
First, a document is sent to a party and requires a signature
The user then confirms their identity. This can be done through a Trust Service Provider [TSP] with biometrics that use finger or face scans to see how a person signs their name, including the length and shape of pen strokes as well as the pressure needed
The data about the e-signature is attached to the digital document
The document passes through the automated workflow to the next stage required by your business for processing.
However, remember that how the e-signature works vary depending on the option you are using. If you are just signing a digital document with a stylus as you would do at the cash register, your signature image is captured and attached to the document. But more advanced electronic signatures use verification technology to ensure that signatures are not only authentic but secure too. It is worth mentioning that these signatures provide encryption, audit trails, and other backend tools that promote authenticity.
Who is e-signatures ideal for?
If you need the authorization to expedite service, an electronic signature is an ideal option because you don’t need to waste time waiting on fax, mail, or scanning- you can quickly get the document signed electronically.
If you are working with overseas partners, an e-signature also suits you well. Electronic documents can be sent and signed almost instantly, even from across the world. While paper documents can also travel thousands of miles, but you will not only pay high fees but it is also very slow.
How can e-signature benefit your business?
Here are some of the top benefits of e-signature:
1. It creates a paperless signing process
One of the many reasons why you should integrate an electronic signature solution into your existing workflow solutions is that it helps establish a paperless and simplified signing process. Of course, making your signing process digital allows businesses to gather signatures and approvals on numerous documents from employees and clients remotely and on any device without printing any piece of paper. Electronic signature’s ease of use improves customer experience across industries.
And of course, the streamlined electronic signing process can increase collaboration as the speedy collection of signatures can help prevent delays in projects and deals, thus promoting project progression.
2. It saves time
Another incredible benefit of e-signatures is that they can significantly save time. Implementing e-signature expedites contract execution. Of course, electronic signing eliminates any unnecessary delays in completing contracts, thus improving performance. For many sectors, executing sensitive contracts on time is crucial.
Here is how electronic signatures can save time and hasten the signing process:
- It eliminates repetitive signing
- It hastens negotiations with security authentication
- It eliminates any delays in executing contracts despite the geographical location
3. It reduces costs
Of course, as a business owner, you are always on the lookout for ways to cut costs and maximize your profits. Thankfully, you can achieve that by using electronic signatures. E-signatures can help businesses save a substantial amount of money through a number of ways, such as material costs, reduced labor, and the financial impact of human errors that can be costly sometimes.
One of the most obvious cost reduction benefits that businesses can enjoy by implementing e-signature solutions comes from the creation of a paperless signing process. Companies with a paperless signing process can help cut costs on paper, packaging, as well as shipping.
What’s more, the automation of electric signing can significantly reduce labor as well as the financial risk of human error through the signing process. E-signature solutions eliminate human error thanks to the observing system that provides alerts on any distrustful records or compliance issues.
4. Increased security
E-signatures also ensure enhanced security for sensitive and confidential documents more than traditional handwritten processes. E-signatures solutions offer built-in security features that can help send, receive, and store electronic documents securely. Besides, electronic signatures are also pretty harder to forge, and they can also detect even minor changes.
Using e-signature technology in your business
The technological landscape is dynamic, and it is rapidly changing due to remote work environments. As a business owner, you cannot embrace digital infrastructure without needing the support of an e-signature solution. The e-signature solution can help businesses reduce costs, increase productivity, and improve customer experience. That’s why you need to implement an electronic solution into your organization.