The Benefits of digital signatures in banking are huge. In today’s competitive banking landscape, it is all about service delivery to the digital citizen. The bank that that offers the most convenience, leads.
The banking industry is arguably one of the most competitive in the world. Which is great for the market, because it makes banks more efficient and stimulates innovation.
Undoubtedly, traditional banking is becoming obsolete. This, because of innovation and digital processes that make it easier for businesses and consumers to manage their financial affairs.
During 2020, with the onset of Covid-19, it’s become clear that digitising customer onboarding and accounts is crucial.
But banks face big challenges in digitising the last mile. This is where digital signature software steps in. It assists banks with integrated systems that automate and digitise KYC (Know Your Customer) compliance and document delivery.
The benefits of digital signatures in banking
And, aside from enabling banks to keep up with the changing milieu, digital signatures benefit them in many other ways.
Let’s look at some of the benefits we’ve seen our customers in the banking industry enjoy thanks to digital signatures:
1. Cost savings
In an industry where it’s literally all about money, reducing expenditure is an overriding objective. According to Bank Systems & Technology, manual and paper-based processes during a typical customer onboarding process can cost up to 20 times more than electronic document processing. Consider as well the admin costs that are racked up by NIGO (not in good order) documents, and the need for the implementation of digital systems is obvious.
2. Maximum security
Because the business of banking calls for heightened security, the importance of cryptography-based software steeped in cryptography cannot be underestimated. Digital signatures are the most advanced and secure type of electronic signature available. as they guarantee beyond any shadow of doubt that the contents of a document have not been altered at any stage during transit.
3. Better customer experience & customer loyalty
Customers are the backbone of any successful business, and banks are no different. Give customers what they want, and you have a customer for life. Especially with the modern-day customer, digital strategy and offering is what will set a bank apart. Digital signatures allow banks to offer customers remote, contact-free onboarding and document delivery. In addition, they have the bonus benefits of security, digital audit trails and legal safety.
4. Compliance
Not only are banks the trusted custodians of customers’ assets, they are also the keepers of customer data. Plus, because data protection regulations are more stringent than ever before, banks need to be 100% compliant. Digital signatures are highly compliant.
Importantly, SigniFlow digital signatures were developed with security and compliance at the core. They are also compliant with European, US, South African and international regulations for electronic transactions and trust services.
5. Productivity
Because digital signatures reduce the amount of time that would normally be spent on admin around paper (think of all the copying, filing, scanning, mailing, searching for documents, etc), staff and advisors have more time to spend on building and maintaining customer relationships. Unquestionably, paper kills productivity – digital signatures bring it back to life.
For more information on how SigniFlow has helped banks go paperless with our digital signature and workflow software, visit our SigniFlow for Banking page, or to get in touch or find out more about how our solutions are changing the business world, visit SigniFlow.com.
REFERENCES
- WealthForge – What are NIGO Documents?
- SigniFlow for Banking
- Electronic vs digital signatures: Defining the difference
- Top ten benefits of digital signatures
