Electronic signature in the banking industry – where are we?
The electronic signature, the ultimate technological part of contracts’ digitalization, is deeply changing banks’ and financial organization’s relations with their customers, as well as the way they work. In a nutshell, electronic signature already allows customers to avoid long lines and endless meetings with their banks representative. On the banks and financial institutions side, there are also several pros: Firstly it is an opportunity for them to improve their image towards their clients, secondly it is a way to reduce significantly administrative costs, allowing their sales force to focus on sales’ process and customers more than on administrative tasks.
So, why are there some banks still reluctant to trust the electronic signature process? A complicated technology. For non-specialists, understanding terms like “encryption”, “cryptography”, “time-stamping” or even “key loading” can be scary. The first thing they understand is how complicated is the technology and they don’t get how it could bring their customer relationship and their business to the next level. I believe the first step they should make would be to make sure that the company/team is mature enough to accept the technology and the changes it can bring. The second step would be to select a trustworthy provider, able to explain simply how it works and supportive. Multiple offers and solutions. With the digital signature advent in the past few years, banks and financial institutions also have to face the increasing number of solutions answering different needs. I won’t recommend working with one provider/solution for each need. For example, that is the main reason why Realsec launched the LTV Sign Suite, an all-in-one solution including Digital Signature, Key Management,Time-Stamping system.
The implementation of a digital signature solution already requires changes in the company, no need to add struggling with various solutions and providers! Is digital signature really secure? It’s been years that digital signature has been recognized as valid and legal as print signature. However, there are still questions on security, for the customer and his digital identity, as well as for the bank with processes and contracts’ validation. It definitely remains the main issue that is still keeping some banks and financial institutions away from adopting and using digital signature. Seeing the latest frauds, security breaches, etc. in the media surely don’t make them comfortable using such solutions to sign and approve contracts. Again,
I think the most important for any bank or financial institution is to choose the right partner, offering a really secure solution.