A new guide for asset finance companies has revealed the strategic benefits of introducing electronic-signature technology.
The OneSpan ‘Beginner’s guide to electronic signatures – key considerations for creating digital business processes’ is available to download now.
OneSpan provides digital solutions to more than 10,000 customers worldwide, including more than half of the top 100 global banks.
Its guide shows how an e-signature provides a lasting record of an individual’s intent that can be used to accelerate business processes and reduce administration costs.
Around the world, more than 90 countries have passed legislation affirming the legality of e-signatures. The guide points out there is no longer any question about whether electronic signatures are legal, and the trend toward wider acceptance globally is clear.
Recent legal disputes in the US indicate that e-signatures can actually provide a stronger legal defence than is possible with paper. This is due to an e-signature’s ability to capture both static and visual audit trails, thereby documenting the entire signature process.
By using e-signature technology, companies are transforming transactions and the customer experience as a whole by shifting away from paper.
In addition, processes like contracting, HR and invoicing are achieving rapid gains in efficiency and drastic reductions in cost.
Research by OneSpan has shown e-signatures can eliminate the customer drop-off and abandonment rates related to paper-based processes, with an end-to-end digital process resulting in 99% of contracts being e-signed.
Furthermore, time consuming errors such as missing signatures and data are avoided.
As a result, companies could offset up to 90% of administrative labour based around paper processes and save as much as $10 per individual transaction.
The report highlights the experience of BMO (Bank of Montreal), which introduced e-signatures for customer onboarding that freed up employee resources to increase frontline capacity, leading to more customer conversations and an incremental revenue increase of up to $8.9 million.
There was also an increase in process efficiency of around 40% across personal banking onboarding.
For many companies, there are significant administrative costs related to paper processes, because customers must often mail back completed documents after signing.
For one insurance company, these documents were often not returned, despite persistent follow up by the carrier, resulting in a significant amount of lost business.
By switching to a web-based model with e-signatures, the company now receives 1 million e-signed documents per year, saving $10 per transaction and improving conversion rates.
For transactions over the internet, there is a 92% adoption rate of e-signatures.
For a detailed guide on the potential benefits of e-signatures, download the OneSpan guide here.