Electronic signatures: 3 benefits for banks

Implementing new technology can often be met with skepticism. Why fix something that isn’t broken?

FinTech Weekly
Jul 5, 2018 · 3 min read

By Kylee Wooten, Sageworks

However — competition and customer expectations are pushing many in the financial services industry to realize that just because it isn’t broken, per se, doesn’t mean it’s perfect. Take signatures, for example. It’s hard to comprehend that something as seemingly quick and simple as a signature can present a major obstacle to a financial institution’s speed and growth. But when you consider how many times a loan document has to be held up to wait for a signature, faxed or mailed to acquire a signature or checked for a signature before being pushed along in the process, it’s easy to see how the inefficiencies can add up.

In recent years, digital signatures have been widely accepted as the most advanced, secured and effective way to obtain a signature. With the influx of online businesses and brick-and-mortar stores taking their products and services online, it’s no surprise that electronic signatures have boomed. In fact, the digital signature is forecasted to see a compound annual growth rate (CAGR) of 26.5 percent over the next 5 years, and the primary driver behind the growth is through increased adoption in the banking, financial services and insurance sector, according to P&S Market Research. Banks and financial institutions that adopt electronic signatures can expect an array of benefits such as:

1. INCREASE IN EFFICIENCY AND TRANSPARENCY

2. SAVE (AND MAKE) MORE MONEY

3. ENHANCE SECURITY

Financial institutions are at a unique crossroads of needing to accommodate the growing evolution toward self-service, while still being expected to create personal relationships with customers. Electronic signatures help prevent the headaches and hassles of getting documents signed, while giving financial institutions the time to focus on their customers and their growth.

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