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How Electronic Signature Helps Business Processes?

Jon Black

electronic signature

The dominance of electronic signatures stands out as one of the most significant transformations brought about by the internet and advanced technology in the business world.

While digital signatures have gained acceptance among entrepreneurs and investors, their full integration into business systems will require time due to ongoing advancements.

Regardless of whether you operate a small business, a house mortgage company, or a financial institution, understanding the role of electronic signatures in your business processes can help you determine whether to adopt them.

How Do Electronic Signatures Function?

The process of electronic signatures can be broken down into three steps:

  1. Generation of Keys

An electronic signature is created when an algorithm generates a private key that corresponds with a public key.

  1. Signing

Signing involves using an algorithmically generated private key to sign a document.

  1. Authentication

To consider an electronic signature authentic, the algorithm verifies its consistency and originality If the signature does not match the specimen signature, the algorithm automatically rejects it.

An authentication solution is a tool that distinguishes genuine signatures from fake ones.

If you haven’t mastered the art of signing documents electronically, it is advisable to practice so that you don’t face multiple rejections when you need it the most.

How Do Electronic Signature Impact Business Processes?

electronic signatures to improve business process

If you have already adopted electronic signatures in your business, you will be delighted to discover their positive impact on your processes.

  1. Increased Productivity

Gone are the days when you had to purchase large quantities of paper, print, package, and ship documents to customers, business partners, or employees for signatures.

Engaging in physical paperwork and signing numerous documents daily can be overwhelming. Electronic signatures not only save costs but also enhance productivity.

By reducing the burden of hard-copy paperwork, E-signatures enable employees to focus on achieving organizational goals.

  1. Minimal Time Wastage

To stay on track with business objectives, avoiding unnecessary time-consuming tasks is crucial. The traditional signature process involves printing and shipping documents for recipients to sign.

Wasting time on paperwork that could take days to complete a deal is the last thing any business needs. However, with E-signatures, recipients can receive signed documents within minutes.

  1. Enhances a Customer-Friendly Experience

Physical paperwork is prone to loss, compromising security and document flow. If a client sends back an unsigned document or loses it during dispatch, it results in wasted time and money.

Electronic signature employs robust encryption algorithms, protecting both parties from such risks and providing a customer-friendly experience.

  1. Promotes Audit Tracking

Audit tracking is vital for businesses to assess their progress. So, unlike traditional signatures, e-signatures preserve a business’s integrity and security by eliminating the possibility of missing documents during audits. Retrieving and cross-checking documents can be done electronically.

  1. Enhances Business Credibility

If your business deals with international clients, using digital signatures to seal contracts and deals can enhance your credibility.

According to recent findings from marketing agencies like Incify.co, prospective clients, investors, and stakeholders often assess credit history and business activities through digital platforms to determine the viability of establishing international relationships.

Stop relying on traditional signatures and switch to e-signatures to build a favorable reputation for your business and stay ahead of competitors.

In the fiercely competitive corporate world, relying on traditional methods of signing documents to confirm deals is impractical.

Consider the expenses incurred in producing physical paperwork and the time wasted in sending and waiting for clients to sign documents. If physical signatures have hindered your employees’ productivity, transitioning to e-signatures will improve your business processes.