previous icon Back to blog
Nov 02, 2020
4 minutes read

The top 4 reasons to use Electronic Signatures

We've all hand-signed an agreement or contract, only to have to scan it before sending it over email. It's not only a time-consuming process, it's also extremely unsecure. Thankfully, there's an alternative.

The electronic signature has been officially recognised in Europe since 1999 (according to Directive 1999/93/CE on electronic signatures). It's a mechanism to guarantee the integrity of an electronic document and to authenticate the author. The electronic signature can’t be canceled or reproduced on another document and is impossible to counterfeit. Since 1 July 2016 – the date the eIDAS Regulation (electronic identification and trust services) became law – its minimum legal value is the same throughout the European Union. This regulation specifies in particular that the qualified electronic signature has the same status and the same legal effects as its handwritten equivalent.

It's no surprise that electronic signatures are becoming increasingly indispensable in the various commercial exchanges within the banking and insurance, retail, human resources and real estate sectors.

From our work with implementing electronic signatures here at CM.com, we've compiled a list of the top 4 problems solved by electronic signatures.

1 - More efficient use of time

Compared to traditional signatures, the electronic signature saves a lot of time since it's possible to send a document to be signed by several signees in just a few clicks.

In many sectors, such as banking and insurance, the electronic signature makes it possible to conclude sales outside of business hours or to subscribe to online offers 24/7. An electronic contract will always be ready to be signed in seconds, which also shortens file processing time. A customer or a partner can sign a document via any device (mobile phone, tablet, PC, etc.) without having to go back to the office or pick up a scanner to be able to send it. This approach makes electronic signing vastly superior to traditional signature methods.

In the human resources sector, e-signing makes it possible to sign a work contract quickly and multiple documents can be signed and returned quickly and efficiently.

2 - Lower costs

According to a study conducted by CM.com, the electronic signature would reduce operating costs of £61,672 in a year or so if it is used via the Web application or £67,870 through the integration of the API (based on 500 signed documents per month and two signatories per document). Indeed, the paper management of contracts and documents to be signed is more expensive compared to the e-signature (in terms of travel, shipping costs, use of paper, etc.).

3 - Follow the progress of files

The electronic signature makes it possible to follow the progress of files in real-time. Thanks to a digital certificate, it's possible to trace each modification or action performed on the original document.

The tracking tool integrated with most electronic signature solutions can also trace the progress of signatures and send an automatic reminder to recipients who haven't signed the document. This tool informs everyone involved where each document is in the signature loop.

4 - Secure access and identity of the signatory

It is possible to choose a level of security adapted to specific needs and to set up one of the three degrees of reliability of the electronic signature. According to the eIDAS regulation, the use of electronic signature provides three levels of security: standard (a checkbox), advanced (the identity of the signatory is linked to the signature) and qualified (each signatory must first identify with a trusted service provider).

Indeed, the mere fact of filling a box, putting your name or "agreement" on a website is considered an electronic signature. The great advantage of the standard signature is that it remains very accessible to the signatory. The issue is that this type of signature is easily counterfeited. On the other hand, advanced and qualified e-signatures have a higher legal value and can be used for high-value and high-risk agreements – the transfer of ownership of real estate, for example. These categories of signatures make it possible to guarantee the identity of the signatory while conforming to the European regulation on the protection of data (GDPR), which aims at greater transparency and responsibility when it comes to the sharing of personal data.

According to eIDAS (2016), all EU member states are required to follow the same e-signature standards. It should be noted that in some countries, such as Belgium and Estonia, citizens have identity cards with electronic signature certificates, but this isn't the case in the UK. It's possible to create a signature certificate and a signature via any device with electronic signature solutions in SaaS mode.

To summarise, the digitalisation of services and processes is helping to accelerate trade in Europe in many sectors. On a daily basis, the electronic signature facilitates interactions between companies, individuals and public organisations. Being able to choose the level of security appropriate to the needs of companies also allows us to rethink and modernise the way information and documents are accessed, managed and secured within organisations.

Discover more about our Sign solution today.

Was this article interesting?
Share it!
Tags
CM.com
connects tens of thousands of companies with millions of consumers via their mobile phone each day. Behind the scenes, from our innovative platform, CM.com makes sure companies can use these millions of messages, phone calls and payments to become part of people’s lives.

Related articles

Sign e-sign blog image new feature
May 01, 2023 • Sign

Sign your documents at the highest level of security with Qualified Electronic Signature (QES)

Electronic Signature has become a must-have for companies, regardless of size or industry. Being able to request, collect and store electronic signatures in a highly secure way saves companies time, money and protects the environment. Used directly via our platform or integrated into software through our API, our Sign solution allows you to send and receive electronic signatures through several channels. So far, we were already meeting eIDAS legislation requirements for Advanced Electronic Signatures (AdES).

How to Create an E-Signature?
Apr 18, 2022 • Sign

How to easily create an electronic signature in 5 steps with Sign

Research suggests that many individuals continue to believe that creating an e-signature is a complicated process. This means that many of them stick with the status quo - using traditional “wet” signatures even though they are associated with higher costs, lower productivity levels, and a more harmful impact on the environment.

signing-improves-customer-experience
Dec 13, 2021 • Sign

Stop annoying your customers: how Digital Signing improves customer experience

The creativity of your adverts, the design of your website, and the personal touch of your sales team all contribute to your customers’ experience. Providing a great experience helps generate more customers and more revenue. So, when the customer is willing to sign, it just doesn't make sense to deliver a poor experience.

sign-everywhere
Oct 25, 2021 • Sign

Sign documents on the go via SMS, email or WhatsApp Business

Digital signatures have become a key part of business systems – particularly as remote and hybrid working has risen in popularity. Sign offers unique benefits for your business that eliminates bottlenecks whilst reducing your organisation's environmental impact.

benefits-electronic-signature
Aug 05, 2021 • Sign

11 benefits of switching to Electronic Signature software

Has your business made the shift to using esignatures yet? If you’re curious about the benefits of electronic signatures for your business, you’ve come to the right place. In this blog, we’ll share the benefits of esignatures — plus everything you need to know about CM.com’s electronic signature product.

blog-sign-candidate-experience
Jul 02, 2021 • Sign

How to ensure a smooth candidate experience without (digital) hurdles

We all understand the concept of “customer first” and for most organisations offering exceptional customer service is one of the main business goals. But despite the battle for new talent on the job market, this principle doesn’t determine the way of thinking and acting during the recruitment process. Process digitalisation could be the future when it comes to HR and recruitment.

blog-sign-signatures
Mar 09, 2021 • Sign

Electronic Signature vs. Digital Signature: the key differences

Traditional pen-and-paper signatures are looking more outmoded than ever in the COVID-19 era, driving fresh interest in electronic and digital signatures. So what are the differences between the two terms?

blog-sign
Feb 03, 2021 • Sign

Introducing Sign 2.0: new UX design for e-signatures

Bringing you the latest exciting design enhancements, based on current UX insights

Is this region a better fit for you?
Go
close icon