Do any of us remember visiting a bank in recent times? That’s a rarity nowadays. The rise of online and mobile banking has made it possible for customers to perform most banking transactions without ever having to visit a physical branch. With just a few clicks or taps on their smartphone or computer, customers can deposit checks, transfer funds, pay bills, and even apply for loans.
This shift towards digital banking has been driven by the convenience it offers, as well as the cost savings for both customers and banks. By reducing the need for physical branches and tellers, banks can save money on rent, salaries, and other expenses.
Even for tasks such as opening a new account or getting a loan, technology is certainly reducing the need for in-person visits is now possible without ever visiting a bank through the eSignature platforms.
Banks have agreed that the adoption of digital signatures has been identified as a crucial step toward achieving a complete digital transformation in consumer-centric operations. With digital signatures, customers can sign documents and complete transactions electronically, without the need for physical paperwork or in-person visits to the bank. This not only improves efficiency and reduces costs, but also enhances security and provides a better customer experience. As such, many banks have been investing in digital signature technology as part of their digital transformation strategies.
Many countries are updating their information technology laws to facilitate the use of electronic signatures and other digital authentication methods. These legal changes are designed to support the growth of digital transformation in banking, by streamlining processes and improving security in the digital realm.
Benefits Of Using eSignatures By Banks
The adoption of electronic signatures, or eSignatures, offers numerous benefits to businesses, including improved efficiency, cost savings, and enhanced security. These benefits can translate into growth for businesses by enabling them to streamline processes, reduce operational expenses, and better serve customers. Here are some of the key benefits of using eSignatures and how they can drive growth:
eSignatures eliminate the need for physical paperwork and manual processes, which generally are time-consuming and error-prone. It allows users to sign and execute documents electronically in a matter of minutes, rather than days or weeks. This can significantly reduce turnaround times for contracts, agreements, and other important documents, allowing businesses to close deals more quickly and move projects forward faster. Consumers value banks that understand from their perspective and reduce turnaround time without wasting in waiting in long queues.
Efficiency leads to growth by enabling businesses to take on more work and complete projects more quickly, thereby increasing revenue and profitability. It also allows businesses to better serve customers by providing faster, more streamlined services.
Automation of signatures aids businesses to save money by reducing the need for paper, ink, and other supplies, as well as eliminating the costs associated with printing, mailing, and storing physical documents. This can add up to significant cost savings over time, especially for businesses that deal with large volumes of documents. We live in a world that needs the community and business to spearhead the need to reduce carbon footprint by adopting eco-friendly solutions.
Businesses can reinvest the savings into other areas of the business, such as marketing, research, and development, or hiring new employees. It can also enable businesses to grow organically while offering more competitive pricing to customers, which can help attract new customers and retain existing ones.
Digital signatures offer a higher level of security than traditional paper signatures, as they are encrypted and tamper-evident. Someone can’t alter or forge a signed document without detection. A digital audit trail is provided, which records every step of the signing process and can be used to verify the authenticity of the signature.
Customers’ confidence is exacerbated when they are offered services with enhanced security features such as digital tools. It helps to build trust and loyalty among customers, which can lead to repeat business and positive word-of-mouth referrals.
Better Customer Experience
Electronic signatures can also improve the customer experience by providing a faster, more convenient way to sign documents. It is a feature that aids customers to sign documents from anywhere, at any time, using any device with an internet connection. This eliminates the need for customers to visit a physical location to sign documents, which can be inconvenient and time-consuming.
Customer retention is more valuable than two new acquisitions as repeat sales have a knack for building a bank’s trust and ringing in new business through happy review customers. Customers who have positive experiences are more likely to recommend a business to others and make repeat purchases themselves.
Use Cases For eSignature By Banks
Banks can use eSignatures to promote consumer-centric solutions in a wide range of verticals. Here are six examples:
New accounts can be opened quickly and easily, without the need for in-person visits or paper forms through digital signatures. This can help attract new customers and streamline the onboarding process.
With eSignatures, customers can sign loan applications and other related documents electronically, reducing the need for physical paperwork and making the process faster and more convenient.
Wealth management services have several documents related to demat and trading accounts that need multiple signatures. With the advent of technology, banks can use eSignatures to enable customers to sign contracts related to wealth management services, such as investment management agreements, electronically.
Lending documents have covenants, collaterals, and other important forms, where a signature cannot be missed erroneously. Hence, mortgage lenders can use eSignatures to streamline the home buying process for customers, allowing them to sign mortgage documents electronically and reducing the need for in-person visits to the bank or title company.
SAAS-based technology and AI are making a difference in how businesses were conducted in the past and how they will be done in the future. It is crucial to flow with time and use digital transformation to go with the trend. This can help them streamline processes, reduce costs, and provide better customer experiences.
Abdul Aziz Mondol is a professional blogger who is having a colossal interest in writing blogs and other jones of calligraphies. In terms of his professional commitments, he loves to share content related to business, finance, technology, and the gaming niche.