Banks continue to resist implementation of each new technology due to fears of the risk that is always in every modern technology. Electronic signature serves as an excellent example of the contemporary new technology that has received mixed welcoming in the banking industry. Here are the top reasons why banks need to consider electronic signature for doing business.
1. Cut Costs
Modern day businesses mainly target to cut costs and increase their profitability. Banks are not any different from the modern day business empires. An electronic signature can help a bank cut on its costs tremendously while at the same time increasing its profits. With e-signature solutions, a bank will not have to print out documents for customers them to be signed by customers. Signing by customers can be done electronically and hence avoid printing the document. Huge savings will get realized since the bank will reduce its printing expenses as well as the printing papers expenditure. Business costs will therefore reduce and hence the business becomes more profitable.
2. An electronic signature saves time
An electronic signature is faster than manual signatures. Every business targets to be fast in all of its business operations hence achieving customer satisfaction. Any business that runs its transactions faster will have a high rate of productivity and will be much more profitable. To sign a document electronically, the parties involved do not have to be present in the business premises making it possible to save on time that gets used in traveling to the business to sign a document. Companies should, therefore, consider signing their documents electronically if they will want to be faster in their operations.
4. Flexibility in signing
Flexibility remains a crucial consideration for anyone serious about doing business. E-signatures in banking industry are more flexible than manual signatures. With manual names, one has to be around in the bank at a given time that is specified by the bank something different from the electronic signature. You can sign the document from wherever you are even from your sofa back at home. Such flexibility makes most banks go for electronic signatures and ditch the manual signing system. The flexibility that results from using electronic signatures also makes it possible to do business in a better way hence making the company more profitable.
5. Long lasting
Any electronic signature used in the banking industry is long lasting than manual signatures. Most e-Signature solutions for bank & finance industry referred to even after ten years which is not possible with manual signatures. The Ink used in most manual signatures keep fading and can finally become so unclear that one cannot say whether such a document was at all signed. Obscure signatures will make it hard to refer to such signed documents shortly. Electronic signatures are not in the same case as manual signatures since they are more long-lasting than the manual signatures because they are stored electronically. You can, therefore, refer to them even when it is a long time that has passed.
Security remains the key reason why e signature internet banking is attracting a majority of the banks globally. With electronic signatures, one can do any transaction without fear of losses that result when unauthorized persons access your financial data. Electronic signatures are often encrypted making it hard for any malicious individuals from hacking down your system. Many electronic signatures accompanied by critical system logs that are unique to a given individual. Such security features make electronic signatures a favorable choice for any individual.
7. Environmental friendly
Most of the best e Signature Solution for Banking is environment-friendly. Electronic signatures are not printed out in printing papers, and hence one does not need to cut down trees. Failure to cut down trees will ensure the environment is conserved. Environmental friendliness remains one key reason why the electronic signature is encouraged in all other industries apart from the banking and finance industry.
8. Reduction of fraud levels
An electronic signature is critical in fighting the increasing levels of fraud across the globe. Unlike manual signatures, an electronic signature cannot be interfered with or get copied. If deleted then authentication has to be done and critical protocols observed. The system will show who removed a particular electronic signature. Such measures are so vital in fighting fraud in any financial institution.
9. Accessibility of documents
Electronically signed documents are easily accessible than those who are signed manually. Most of these documents are electronically stored, and one can access at the click of a button from anywhere in the globe. One does not need to travel for long distances to access the document. Such is not the same with manual records which often kept in big file stores. To obtain such materials, one has to go through piles of past papers. Sometimes you end up even not accessing your desired report. With electronic signature documents, you can need to get the relevant logs from admins, and you are good to go.
10. Electronic signature documents are easy to generate
Unlike manually signed documents electronically signed documents are easy to generate making them not spend a lot of energy on them. Energy saved can be used in doing other productive activities that will make the organization grow in different aspects. Such growth will ensure increased productivity of the organization which is a crucial target of many organizations.
You now know why you need to consider electronic signature in your bank. The list for top reasons why the electronic signature is valid for any institution will continue to grow even as we get more technologically advanced. Consider the above benefits.