According to the Nigerian Bureau of Statistics, $50 trillion in online transactions were made per month since the start of 2023. This is just one of the indicators that make Nigeria Africa’s largest economy. In finance sources, there is a large amount of demand for dealers and consumer expectations and concerns about security and efficiency.
A plethora of paperwork everywhere each day is a brutal reality in this field. It’s impossible to get away from it! In addition, paperwork can make daily business processes more complicated because financial documents require scanning, printing, and secure storage to safeguard private information such as bank account information and signatures, identity proofs application, self-attested copies, etc.
The market is growing because of the numerous financial firms that have access to easily visible products such as mutual funds stock, fixed deposits, stocks and loan approvals, insurance, etc. In addition, these firms benefit from the widespread utilization of technology to broaden their market penetration and coverage.
The variety of financial products available on the market increases due to the growing number of companies and the volume of paperwork required to record customer information such as those interested and newly subscribed customers’ everyday transactions. This increased volume of paperwork does more significant harm than good for the business. Many developments and changes are happening in the digital technological world. The vast majority of businesses across different industries and fields are embracing technological advancement in the world. Electronic contracts are the most popular. It offers ease, security, and security during signing legal contracts.
The Legality of eSignatures for Banks
In 2011, the Evidence Act was passed to establish the legal basis for equivalence between electronic records and signatures to signatures and writings written on paper. Today, e-signatures are generally accepted in Nigerian law courts as they can be utilized by an individual instead of the signature affixed by hand. The electronic signature will have the same effect and validity as the signature that is affixed by hand. The E-Sign Act was passed in 2011 as a regulation of the federal government to settle disputes regarding the use of electronic signatures.
Benefits of eSignature Technology in the Financial Sector
In recent years, Electronic signatures have become widely adopted as the best, most secure, and most efficient method to get a signature. With the increasing number of brick-and-mortar shops bringing their services and products online, it’s not a surprise that digital signatures have grown in popularity.
The digital signature is expected to experience an annual compound growth of (CAGR) that is 26.5 percent in the next five years. According to P&S Market Research, the main reason is the increase in adoption within the banking and financial services sector. As a result, financial institutions and banks that use electronic signatures will reap many benefits, including:
Enhance security
Paper documents can be easily modified, and signatures could be made. Even if documents are stored inside filing cabinets, there’s a chance of records being lost, stolen, or lost. Electronic signatures are more secure to ensure signature authenticity and storage. Companies that offer document management systems such as Flowmono use encryption verification technology referred to by the name of Public Key Infrastructure (PKI) technology to confirm the authenticity of an individual’s electronic signatures. It is the most secure standard to identify a person.
Digitalized Processes
The primary benefit of electronic signatures in the financial industry refers to the decreased process that relies on paper. By using e-signatures and digital files, financial services can help speed up the processing and management of critical tasks. A faster processing speed could also mean substantial savings in the expense of stationery and other costs.
Additionally, electronic signature platforms aid in the storage and retrieval of documents. In addition, the decrease in paper-based work also allows companies to concentrate on essential issues like the most critical business activities and investigate new possibilities.
Customers Trust
Each day, organizations and individuals are embracing electronic signatures. In addition, the public is becoming more aware of its advantages and, consequently, is employing electronic contracts to sign most agreements, where they can provide electronic signatures. Electronic signatures offer security and assurance in the contract. Thus, clients prefer to sign electronically when signing digital contracts with financial institutions. Not just at finance places, but also, customers are choosing to use digital signatures at shopping centers, banks, and other places using tablets, mobile phones, and signature pads. Electronic contracts aid in building the trust and credibility of the customers in the company. Many finance companies are adopting electronic contracts and e-signatures for their services.
Improves Customer Loyalty
Banks have to offer customers operational freedom. eSignature permits banks to provide banking freedom to their customers. They also provide convenience, ease of use, and private access to transactions and documents. The Ombud research indicates, “a 500% increase in customer loyalty is achievable through electronic signatures.” This service enables customers to build a trusting connection with their banks. This ensures that customers are loyal to the banks.
Minimizes Transaction Time
There is more efficiency as E-signatures allow banks to process more transactions in less time. Back office processes are simplified and the time needed to process transactions is reduced from days to hours. Time is saved on every transition and eliminates archiving and tracking document errors. Human errors associated with documents made of paper would reduce through automation.
Customer Satisfaction
The major impact of eSignatures on the financial service industry is the effect on customer satisfaction. The faster transactions are processed and completed within the financial sector, the easier customers gain access to services more quickly.
Furthermore, electronic signatures allow clients to use mobile devices for financial transactions. Additionally, customers can be assured that transactions are happening in real time through electronic signatures. The requirement to communicate with the bank and other designated authorities at the client’s convenience is also a significant factor. It helps with the growth of electronic signature solutions within the financial sector.
If you are thinking of using an e-signature solution, you need to consider the advantages of e-signature in financial institutions and the guidelines for their use. The first thing to look for is the most fundamental elements of its function. One such is Flowmono, a Document Management System (DMS) that offers you the easiest way to streamline your workflow and save costs. You can try it here