Financial institutions of all sizes are beginning to invest in technology solutions to help them become digital, eliminating paper from all internal and external business processes. Among the various technology solutions available, eSignature software plays a vital role in an organizations’ digitization strategy and stay ahead of competitors.
The banking industry is starting to look for ways to rapidly extend these benefits into every business line and channels of the organization. Commercial and retail banks, lenders, credit unions, and many other types of banking institutions have been adopting electronic signatures for a variety of use cases.
Here we’ve listed a few common use cases of eSignature within the banking industry.
Account Opening Process
Implementing a fully digital account opening process has become a challenge for most financial organizations. The onboarding process, for customers, for most banks is only partially automated, leading to high drop-off rates. This influences many applicants to abandon the online process of applications and end up looking for another institution which allows them to complete the entire application process quickly and fully remote. However, financial institutions are now rapidly adopting eSignature and digital identity verification technologies in order to handle the onboarding
g process digitally. Hence, customers will no longer need to visit the bank physically to sign documents.
If the application requires a hand-scripted signature for compliance purposes, the mobile eSignature applications can be used for just this purpose, eliminating the need for in-branch verification and signing. Most banks reported that paperless onboarding workflows have dramatically improved their customer’s experience by minimizing the time involved in competing the entire process.
KYC (Know Your Customer)
Financial institutions are obligated to gather their customers’ personal information for banking transparency and to prevent money laundering. Gathering details from all customers and keeping the records updated them within the system with traditional paper-based processes can be a long and strenuous experience for any department. Fortunately, with digital online signature software you can manage and understand your customers utilizing the entire KYC process securely from anywhere.
Loan & Mortgage Applications
Loan and mortgage applications are an indispensable part of financial institutions’ daily business. The applications related to home loans, vehicle finances, personal loans, and credit applications are processed daily. Most of these applications require physical signatures from the customer and any other parties involved in the applications. On the other hand, those signatures are exceptionally paper-intensive, making the process not only time-consuming and difficult to manage but also takes up lots of physical storage space to keep all paper records on every single customer. Plus, traditional wet ink signatures tend to have inefficiencies in the workflow, wasting money, and valuable time only increases the institution’s overall carbon footprint.
Implementing a digital mortgage application process helps you eliminate most of these challenges while also boosting the organization’s competitive edge. The electronic signature software brings mortgage and refinances online for increased convenience and speed while ensuring compliance. In addition to eSignature solutions, most banks are integrating various other technologies like eDocuments, eDisclosures, and eContract management solution. More to digitize every complicated process within the financial transaction industries. The electronic delivery of time-sensitive disclosures of mortgage applications provides customers with the ability to review the disclosures from anywhere, anytime through any PCs or smartphone.
Wealth Management
The goal of wealth management is to shorten the long sales processes while also eliminating the paperwork involved. Most financial institutions seek to invest in solutions that simplify digital interactions and provide financial advisors with the tools they need to enhance their customers’ experience. Banking experts say that investment advisors usually lose more than 70% of their working hours simply chasing documents and fixing mistakes, including missed signatures and modifying inaccurate data. However, digital signature solutions allow wealth management advisors to easily manage all documents and signatures electronically, freeing their time to concentrate on more productive tasks.
The Conclusion
Customers’ expectations and competition from non-bank lenders makes it imperative for financial institutions to digitize all banking transactions. Most non-bank lenders have begun been adopting advanced technologies such as electronic signatures and others to become more agile in the industry and gain a competitive edge. Customers are rewarding financial institutions that provide them with the ability to submit applications and accept disclosures electronically. With an automated eSignature solution – SutiSign, banks have been reducing the lengthy banking process by more than half.
Majority of the customers will choose to eSign their mortgage applications when compared to physically attending the branch for signing those documents. So, if you still rely on the traditional paper-based processes, it’s the right time to invest in an advanced eSignature software today. Find one that suits your specific needs and requirements in order to enhance the entire companies productivity.
