These days, banking transactions are gradually moving from face-to-face platforms to digital platforms. In addition to allowing for solutions such as file scanning services, the banking industry relies on electronic signatures to digitize and mechanize its operations. This revolution has already enhanced client experience and considerably reduced overall costs.

However, many other things will change in the coming days. Several banking operations, such as account openings, loan/mortgage approvals, and investments, have not experienced this digital revolution due to customer signatures’ strict requirements. The adoption of electronic signatures in these processes will provide significant and quantifiable results in cost reduction, speed of transaction completion, and increased customer satisfaction.

What is an electronic signature?

An electronic signature is commonly known as an “e-sign” or “digital signature.” It is the procedure of lay encrypted data on virtual files/documents and implementing it lawfully. It allows the consumer to sign digitally. In other terms, it is a mark, or other information in the virtual structure attached to a file/document broadcasted automatically to authenticate the correspondent’s objective to sign the document/file.

According to a report, the world produces more than 400 million tonnes of cardboard and paper per year. If you want to protect the environment, adopting new technologies will impress the staff and help reduce waste and improve the business.

However, there are many rewards with technology and the prospective to connect more individuals in your business. Don’t leave electronic signatures out of your operations as it makes your procedures cheaper, faster, and work easier. Just download the software and Add signature in word, and you are done!

For a more detailed understanding, look at some of the electronic signature use cases in banking.

1. Account Opening

Due to the COVID-19 situation worldwide, the customer no longer wishes to go to a branch to sign documents for a new account or present physical identification. In such a situation, applicants can open an account from anywhere with electronic signatures, which makes it much more attractive to potential members,

A remote mobile electronic signature is possible even when online account openings require a handwritten signature for compliance.

The bank has also developed a dedicated mobile application, with electronic signatures integrated directly into the application, so that the entire process remains digital. However, according to some banks, “account opening workflows dramatically improve the first customer experience by removing any need to wait for documents to print or for errors to be corrected.”

2. New Credit Card Application

When applying for a new credit card, there is a lot of signing and paperwork. However, when applying online, all of these processes are digitized. Retail and business customers can provide documents, fill out forms, and provide signatures with one call to reduce rework and speed up the process. As a result, application cycles are shorter, and touchpoints reduced to reduce the risk of losing leads.

With so many people wanting to apply for a new credit card, it makes sense to have a simple and easy process. Finally, you know that a member of staff documentation includes very confidential information. It is, consequently, worthwhile to use individuality verification tools to protect the documents. However, this electronic signature software can be one of the best tools.

3. Loans and Mortgage Applications

Loans are an essential part of their business. There are many requests for these services, from auto financing to home loans, credit applications to personal loans, and everything. But the challenge banks face paperwork and the requirement of signatures from clients on different documents. The process can be time-consuming, and excess paper wastage can take place.

Traditional wet ink signatures lead to inefficiencies in digital and automated workflows, wasting money and time and increasing an institution’s carbon footprint. However, eSignatures also offers advantages in loan and credit applications. In-person and online loan applications are simplified with electronic documents and electronic signatures, improving the customer experience and dramatically reducing the time between the customer’s first interest and official loan approval.

With e-Signing, loan application processes are faster and less vulnerable to errors that need to be corrected, such as missing a signature, resulting in fewer customer abandonments throughout the application process.

4. Customer Onboarding

Providing a fully digital onboarding experience means making it easy for customers to open accounts and transact anytime, anywhere. Rather than filling out an account application in person, which requires face-to-face meetings, multiple parties that operate on different schedules, and unbearable paperwork, clients would use electronic forms to sign their documents electronically.

It not only makes life easier for customers but also for the bank. With electronic signatures, parties are more likely to sign documents on time and quickly, thereby reducing turnaround times. So, agents won’t have to waste time chasing customers for missing information. Instead, they can use this precious time to help others and foster a more desirable customer experience.

Additionally, customer onboarding requires banks to perform Know Your Customer (KYC) and Anti-Money Laundering (AML) processes. This helps ensure the financial reliability of potential customers. And to get such information about these people, documents and signatures are needed. Again, Digital Signature maker are used, even before an individual becomes a real customer.

Closing words

There are many examples in the financial services industry for how to use an electronic signature. With the electronic signature, banks can speed up trade cycles with patterns, tracking features, and CRM incorporations, decrease cycle times, productively onboard customers, and reduce overall operational costs and environmental impact.