Digital signatures are a significant part of an organizational strategy. There is a great interest in eliminating paper-based solutions from the business and going digital among all financial institutions. Commercial and retail banks, lenders, credit unions, and other financial institutions have implemented effective e-signature solutions for several benefits.
With the advancement of technology, the financial sector has realized that it can benefit them in different ways, like cost savings, efficiency, compliance, and better customer experience. Every organization is expanding the use of such services that can be beneficial for them in every aspect.
Here are the reasons how an E-signature solution can add value to the banking sector:
Account Opening
Offering a digital onboarding and account opening process from anywhere, anytime, has become a significant advantage. The main challenge is implementing an effective digital process so that there is no need for a customer to visit the branch to sign forms and documents.
These new and innovative solutions with identity verification and e-signature technologies offer an opportunity to eliminate in-branch signing and verification requirements. Currently, all financial institutions are implementing these types of technologies.
Mobile e-signing is also effective when online account openings need a handwritten signature for verification purposes. Several top banks and financial services have begun to use the mobile signature technology for the easy verification process.
Several banks report that the paperless account opening process has improved the customer experience by eliminating the need to wait in lines while the documents are printed and corrected. It also comes with a great benefit, which allows the customer to choose when and where they can transact with the bank.
Lending
E-signatures, digital processes, and e-forms are being used online in every major sector for signing finance contracts and loan applications and delivering consumer disclosures. By keeping the transactions digital and applying an effective workflow strategy, you can easily eliminate the risks associated with document errors, like missing information and signatures.
Digital signatures also eliminate the hard effort and poor customer service involved in the document rework. For example, calling a borrower back to re-sign the document that was not correctly completed the first time.
Increased Efficiency
In the banking sector, the loan applications that are filed by the borrowers usually require valid signatures from multiple individuals and businesses. As all the agreements are delivered via paper or fax, it becomes challenging to analyze where the customers are in the desired signing process.
Implementing an effective digital signature maker allows organizations to offer complete transparency towards their customers during the entire signing process. It also offers bankers the opportunity to make sure that every information is filled out during the online signing process, which thereby reduces the physical paperwork and other related work.
In every case, digital signatures are considered to help deliver great customer satisfaction while eliminating the need for borrowers to wait in lines when visiting a particular bank or branch.
Improved Security
No one can deny that the documents and forms that are filled out manually can be damaged easily. Also, physical signatures on a paper can easily be tempered. There is also an increased risk of documents being misplaced, stolen, or lost, even after filing them in cabinets or lockers.
In such cases, digital signatures are known to offer great security to store and verify electronic signatures. Signing a document online uses a specific digital signing software that can help you to prevent security breaches on a large scale.
Every digital signature solution provides assurance of secure transactions and signatures by using the latest encryption technology. Advanced digital techniques like knowledge-based authentication and text-code authentication are now used to authenticate both parties’ signatures.
Cost-Effective
Digital or electronic signatures are mainly known for helping the banking sector to save valuable money that is associated with paper-based solutions. According to a report, the financial institutions that have implemented digital signature solutions for online document signing and other processes can save a significant amount of money per document while reducing the turnaround by 80 percent.
Electronic signatures are helpful in providing the banking sector more time when they want to get new opportunities to expand their business.
Streamlined Functions
The electronic signature allows the banking sector to process numerous transactions with involving any additional staff. This helps in enhancing the time-value attribute. Also, it helps in streamlining the workplace transactions while reducing the time that you spend in filing the documents and forms.
According to studies, it has been found that the use of electronic signatures in the banking sector can easily save around 1.3 hours on every office transaction. This advantage is achieved by eliminating the challenges involved with reviewing or negotiating documents, preparing documents, archiving, tracking, or rekeying documents.
Also, digital signatures can help in removing all the manual errors that are associated with complex paper-based solutions of document handling.
Wealth Management
Wealth management is a great strategy on how to implement electronic signatures. The main aim is to eliminate the long sales process, where a lot of paperwork is used to interact with the customer.
According to a survey, 32 percent of individuals reported that there is an improved client onboarding process from the office and implementing digital technology to enhance every client’s engagements.
The survey also found that 34 percent of individuals prefer using wealth management websites or client-facing portals while buying new financial services or products, and 64 percent of individuals admitted that with this technology, they have better collaboration with the banking advisor.
Bank Staff Onboarding
Bank new employees can easily sign the word documents and complete the onboarding process anytime, anywhere. All of the digital documents involved in the process are directly send to the HR department. There is no need to carry or sign the documents physically.
Conclusion
There are several potential benefits of implementing electronic signatures in the banking sector. You can easily eliminate your daily hustle by implementing an effective digital signature solution. With digital signatures, the financial sector can speed up their sales process with advanced techniques in an effortless manner.
