Countless businesses today have made the move to electronic signatures, as they realize using digital signatures benefits their business in several ways. Fortune Business Insights reports the global e-signature market should reach USD 7.99 billion over the next six years. As paperless signatures become more commonplace and gain legal compliance, they will become even more popular. Why should every company consider making the switch to electronic signatures?
Exchanging documents for signatures becomes a challenge when two or more parties live in different locations. Imagine living in Washington, D.C., and needing a signature from someone who resides in Oregon. The process could take an extended period. With electronic signature programs such as mSign, a person can send and receive documents using their mobile device and they never have to leave home. This allows for more mobility and flexibility, and they have the signed paperwork in minutes.
No time is spent printing the documents and mailing them. There’s no need to file the document once the signature has been obtained, as it is stored electronically. If it is needed in the future, pulling it up on a computer or mobile device is effortless. The convenience of this option helps explain why many men and women are making the switch to digital signatures whenever possible.
Owning and maintaining a fax machine costs money. Not only does it require paper and toner, but regular use could lead to the need for repairs. Moving to electronic signatures eliminates these costs. All tasks are handled on a computer or mobile device, and documents remain in storage in the cloud. There’s no need to print them when they can be accessed at any time with nothing more than a device and internet access. In fact, converting to digital signatures can reduce document processing expenses by 85 percent.
Digital signatures reduce paper clutter while saving trees. Although going completely paperless won’t be possible anytime soon, every bit does help. When most businesses begin working to save the environment, the results add up and the planet benefits.
The United States and Canada first legally recognized digital signatures more than two decades ago. Today, more industries allow for the use of electronic signatures, with new sectors joining every day. As a result of this growth in the electronic signature industry, companies offering digital signature technology continue to improve on their offerings. They work to ensure their offerings allow users to remain in compliance with all laws and user information remains secure.
A Reduction in Paperwork
When companies use electronic signatures, they no longer have to dig through files to find a document when it is needed. The documents are stored in the cloud, so they can access them when required. Customers appreciate this, as it reduces the time they spend interacting with the company. They can get on with their lives knowing the matter they were addressing has been handled.
At times, signatures are needed rapidly. This may be to close a deal, finalize the sale of a house, or numerous other things. E-signatures automate workflows and this helps to accelerate routine payments. It takes the average person five days to secure a physical signature when opening a bank account. In contrast, the e-signature process takes 37 minutes on average from start to finish.
When using a regular signature on documents sent via email, numerous steps must be carried out. The sender needs to scan the document and deliver it electronically or through regular mail. The individual receives or downloads and prints the documents. They are then signed, scanned into the computer, and returned via email. If this isn’t possible for any reason, the person signs the documents and sends them through regular mail. Regardless of which method they use, the process may take days to complete.
Using electronic signatures reduces this process to minutes. Companies can send signing links to multiple individuals at the same time and more. Forrester reports using an electronic signature program saves American businesses 22,000 hours every year.
People often express concern over the safety and security of electronic signatures. However, digital signatures remain tamper-proof, making them a better option than conventional signing methods. An electronic signature contains encoded information. This data includes the identity of the signer along with their location and a timestamp. If any questions arise regarding the signature, the business simply needs to follow the document trail and find the issue and who is responsible.
When choosing an electronic signature provider to partner with, companies need to ask about two-factor authentication, audit trails, password protection, and other security feature. Signing documents electronically minimizes human error by 80 percent, as reported by LunarPen. Companies find audit efficiency increases and may reach 80 percent when electronic signatures are used, which helps to explain why many financial institutions have moved to this technology.