Financial institutions including banks are digitizing their processes to offer better customer experience and improve compliance. eSignature solutions built on digital signature technological innovations provide a secure and compliant way of automating transactions needing customer’s signature. In the past people used to head to banking halls for account opening, loan approvals, and other activities, however, today eSignature for banking solutions has made it possible to have documents signed from anywhere, and the customers don’t have to visit a bank.
Implementing eSignature technology can offer quantifiable outcomes when it comes to cost reduction, customer experience, and transaction completion. Digital signatures are not easy to tamper with and the records can be kept for audit-ready. Implementing eSignatures can save about 1.3 hours in every transaction by doing away with inefficiencies experienced in reviewing and tracking transaction documents. It also saves about $11 in every transaction that is involved in the paper, ink, shipping, and printers. eSignatures improve sales cycle times by using predefined templates as well as CRM integrations. Using eSign solutions helps eliminate printing, mailing, and faxing of paper documents.
That being said, here are five ways the banking sector can benefit from eSignature software:
Enhancing Efficiency Is Very Paramount
Customers for banks fill hundreds of loan application forms with each application needing a signature so that it is processed. When the forms are handled by paper, it becomes difficult to track the locations they are in during the signing process. Using an electronic signature for banking allows employees to remind the signers by sending them a notification so that the complete the signing process on time. It is also possible to track where a specific document may be stuck in the process of signing. This way, it helps improve visibility as well as transparency in the financing institutions or banks. This allows the banks to take actions by sending notifications to remind the signers they should sign the documents. In addition, eSign solutions eliminate the need for customers to directly visit their bank branch.
So how do eSignature solutions help banks enhance efficiency?
- Minimize transaction time
- Streamline internal processes
- Enhanced document security
- Savings passed over to you
- Enhances customer loyalty
- Minimize transaction time
Banks that use eSignature technology are able to process more transactions within a short time something that improves productivity. eSignature software can help simplify back-office function while minimizing transaction time from days to hours. The solution not only saves time for each transaction but also eliminates inefficiencies seen when tracking and achieving documents. Automation of the bank process including the use of an electronic signature app would help eliminate human errors that are related to paper-based records.
- Streamline internal processes
When a bank implements eSignature technology, it eliminates the time-consuming steps involved in paperwork. Rather than having to print, scan, and send paper contracts or agreements, you only need a device to allow you to fill out the docs and sign them from one place. You won’t have to deal with paper scans that tend to hold you back. Also, you don’t have to be disorganized because of paperwork and you don’t have to waste your time. You will be able to directly request signatures from other people and complete banking transactions in real-time. If documents are not signed on time, you can send notifications or reminders to remind the applicants or document signers that they need to sign the documents.
- Ensures document security
The use of paper documents comes with risk such as the ability to have the document damaged easily or the signatures tampered. It is easy for paper documents to be stolen or misplaced. However, implementing eSignatures ensures more security for documents being transmitted between various systems. You will not have to worry much about security or even storage issues. eSignature solutions make use of text-based authentication to help validate the parties signing the documents. A tamper-resistant validation is also applied once the signing process has been completed so help secure the integrity of the documents. You can use audit trails to help keep track of the documents and ensure there is no single document that is untraceable or falls out of the crack.
In addition, if there are changes that have been made in a document, they are tracked. You will be able to know who made the changes and at what time. Some eSignature tools can track the real IP address as well as the device that was used to sign a document.
- Savings passed over to you
Did you know that banks spend millions of dollars every year to correct, retype, or rework and authenticate signatures on business documents? Using eSignature tools helps eliminate errors seen in client signatures. The eSignature solutions can also be integrated or incorporated in other automated document processes helping speed up the workflow and save time, cost, as well as manpower. Implementing eSignature solutions helps cut back on the cost related to manual processing, paper storage, data entry, and other tasks by eliminating heavy paper documentation. The eSign software helps banks to save many dollars that otherwise could have been spent on checking errors on documents. Banks are able to secure more time to find business opportunities instead of wasting time when validating the data. These cost savings are passed to the customers by having cheaper or low-cost services.
- Enhances customer loyalty
It is important that banks give the customer the freedom to be able to choose where and how they are going to transact. This freedom is considered priceless. The Javelin Strategy & Research says that financial institutions need to prepare for customers who research an account online, begins the application process online or from a mobile device, initiates a chatting session, submits or transmits supporting documents online using smartphones, and still make consider visiting a branch where they seal the deal. Banks need to enable customers to decide on these processes.
eSignature solutions for banks offer an easy, convenient as well as personal and accessible document signing and transaction initiation process or experience. These qualities and freedom can help build lasting connections with the customers thus ensuring customer loyalty.
Conclusion
Implementing eSignature solutions in the banking sector helps accelerate sales cycles by using default templates. It helps successfully bring onboard customers and reduce operations costs. eSignatures help to reduce environmental impact while ensuring that the customer enjoys freedom in the signing of documents or doing transactions with the banks.
By Paula Williams
