Write on track

FST. What applications specific to the financial services industry can eSignatures be put to?
Peter Craik. Since the introduction of legislation in 2000 giving electronic signatures equal status in law as wet-ink-on-paper signatures, any paper-based form that needs to be signed can be replicated in electronic format. In fact most financial services organisations have made the halfway step by using electronic forms, however, in the majority of cases the electronic process chain is broken in order to capture the signature. After signing, the forms are then scanned and originals stored offsite. Utilising eSignature technology such as signature pad technology and Tablet PCs, alongside eSignature software to capture handwritten signatures electronically allows the chain to remain unbroken.

The eSignature is securely bound to the form using hash algorithms creating an audit trail containing the biometric data from the signature (X-and-Y co-ordinates, timing, stroke order and, in some cases, pressure applied by the signer) alongside the ceremonial data such as the time and date stamp, location and the reasons for signing.

Applications currently enjoying the benefits of eSignatures include account opening, loan, mortgage and insurance applications, transaction dispute claims, changes of personal details, direct debit forms and customer experience surveys.

FST. How different is the reaction from customers to signing electronically as opposed to the traditional static method? Do measurable results from the use of eSignatures make up for increased costs?
PC. No major customers have advised us of any negative issues regarding eSigning as opposed to the traditional wet-ink-on-paper method. In order to gauge reaction several companies carried out usability testing in selected branches prior to full implementation and reported only positive feedback. We find our customers’ customers appreciate the efforts of their financial institutions in staying technologically current, especially where an eco-friendly message can be delivered simultaneously alongside increased satisfaction when delivering faster decisions, on loan provision, for example.

Studies do exist which point to quantifiable cost savings adopting electronic over paper forms by a factor of 10. Although there is some initial outlay for the hardware and software, the ROI period is extremely short, usually counted in days rather than weeks or months.

Of course, although cost savings are always welcome, other, more qualitative and less quantitative benefits are also found, such as fewer re-keying errors, reduction of not-in-good-order (NIGO) paperwork and happier customers.

The form completion and signature request processes are handled in the appropriate order and a declaration of who is signing and what they are signing can be displayed to avoid ambiguity and future dispute. Again this brings benefits, which are difficult to cost but contribute immensely to an improved customer experience. 

FST. Can you tell us a little about current innovation in the eSignature space? What new developments are becoming available?
PC. As well as the continuing evolution of eSignature hardware, with the introduction of colour screens and screen protectors for enhancing hardware life, the major innovations fall into the software arena. Process set-up and delivery of forms in the relevant order is critical to successful transaction and software developments not only facilitate the eSignature capture-and-bind process, but also enhance workflow. Today, eSignature technology can orchestrate the entire eSigning ceremony, no matter where, how or when the signing occurs directly translating into more efficient workflow and more sales opportunities across multiple channels.

As financial services now have a much wider structure it is imperative to not only manage the eSigning process, but also to bridge the gap between disparate systems, interacting with other bank IT solutions – before, during, and after the document presentation and eSigning ceremony, boosting profitability. New software developments will deliver this functionality and control.

Another innovation creeping into this market is the post-process electronic storage (eVaulting) of the electronic document, allowing documents such as mortgages or insurance policies to be traded as negotiable chattels.

FST. In an age when people are doing more of the banking and spending more of their time online, what does the future hold for physical signage? Can eSignatures compete with the web for the attention of the Internet generation?
PC. For centuries mankind has applied its mark to documents as an indication of their agreement, authorisation or intentions. That is not something that will change quickly and, in my opinion, physical signatures will survive the challenges the Internet brings. Of course we are not naïve to these challenges and are ensuring eSignatures encompasses both face-to-face and internet-based requirements.

Peter Craik established Steadlands in 1993 in order to act as an independent sales agent for manufacturers in the electronic component industry. Product developments led the company into other fields including IT peripherals and it is sales success in the IT field, which has seen valuable growth for his company.