previous icon Back to blog
May 27, 2020
6 minutes read

The Top 4 Business Challenges That Electronic Signatures Solve

Today, most everyone has gone through the timely process of manually sending and receiving hard copies of important documents like forms, contracts, and applications that require your physical handwritten signature and/or initials. If printing and sending multiple sheets of paper with different versions isn't already bad for the environment...when it comes to the validity of those signatures it's also highly insecure and risky for your business. With everything about the traditional document signing process being time-consuming and costly for both businesses and clients...businesses worldwide have started looking for solutions to collect signatures electronically "e-signatures"...

Summary: The History & Law Behind Electronic Signatures

Under the Federal Law, both The United States Electronic Signatures in Global and National Commerce (ESIGN) Act, and the Uniform Electronic Transactions Act (UETA) allow for electronic signatures to become *recognized as valid under the U.S. law (*only if and when specific criteria pertaining to the laws are met)....

What is the UETA Act?

UETA, a precursor to the ESIGN Act, was introduced in 1999 and has been adopted by 47 U.S. states, as well as the District of Columbia and the U.S. Virgin Islands.

What is the ESIGN Act?

The ESIGN Act is a federal law that was then passed in 2000 following the UETA Act. Under the ESIGN Act, legal recognition of electronic signatures and records are granted if all parties to a contract choose to use electronic documents and are willing to sign them electronically.

The Legal Landscape of The UETA & ESIGN Acts:

UETA and the ESIGN Act have solidified the legal landscape for the use of electronic records and electronic signatures in commerce by confirming that electronic records and signatures carry the same weight and have the same legal effect as traditional paper documents and wet ink signatures.*

Both laws provide the following:

  • No contract, signature, or record shall be denied legal effect solely because it is in electronic form

  • A contract relating to a transaction cannot be denied legal effect solely because an electronic signature or record was used in its formation

*The law for electronic signatures in most countries spell out certain types of documents or document categories for which electronic signatures are not appropriate. Each customer should work with legal counsel to identify categories of exclusion pertaining to each relevant country, but common categories of exclusion are wills and trusts, powers of attorney, and declarations given under oath.

Why UETA & The ESIGN Acts Matter:

Both UETA & the ESIGN Acts now serve as a mechanism to protect both the sender and recipient of the electronic document and signatures. These acts guarantee the integrity of an electronic document and authenticate the author of the electronic document. The electronic signature cannot be canceled or reproduced on another document, if attempted, it is therefore unfalsifiable.

Since 2016, the electronic signature has been one of the world's most innovative "process" evolving most rapidly from its traditional method to today's digital solutions. It is becoming increasingly indispensable in various commercial exchanges in banking, insurance, retail, human resources, real estate, and legal verticals and sectors and continues to grow!

The Top 4 Business Challenges & Problems that Electronic Signatures Solve
Answered by CM.com Expert, and an Industry-Leader in Mobile Business Operations & Communications:

1 - Saves More Time & Creates More Efficiency

Compared to the traditional "wet" signature, e-signatures save a lot of time as they allow for you to instantly send and distribute a document that requires a signature to one or more parties involved...digitally and in just a few simple 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 the processing time of the files. 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 facilitates the customer relationship while improving the rate of transformation.

In the human resources sector, e-signing makes it possible to sign a work contract quickly and remotely when necessary.

2 - Eliminates & Lowers Costs

According to a recent study conducted by CM.com, the electronic signature would reduce operating costs of € 68,600 (~$75,000) a year if it used via a Web application or € 75,500 (~$83,100) if used through API integration (*based on 500 documents signed per month and two signers per document). Not to mention, the costs associated with paper management of contracts and documents to need to be signed (and countersigned) is more expensive compared to e-signatures (where there is no need for costs associated with travel, shipping, paper, and the obvious...opportunity costs.).

3 - Easily Track Progress of Your Files & Signatures in Real-Time

Electronic Signatures make it possible to follow the stage in which the document is being signed, allowing files, as well as the contracts to be tracked for progress in real-time. Thanks to a digital certificate, it is particularly 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 have not signed the document. This tool serves as an indicator that informs everyone involved where each document is in the signature loop.

4 - Ensure Secure Access & Identity of The Signer

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. Nevertheless, this type of signature is easy to challenge. On the other hand, advanced and qualified e-signatures have a higher legal value and can very well apply to very high-value and high-risk agreements, for example the transfer of ownership of real estate. These categories of signatures make it possible to guarantee in a certain way the identity of the signatory while being in conformity with the European regulation on the protection of the data (RGPD), which aims at a greater transparency and with the responsibility of the economic actors.

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 is not the case in France. It is possible to create a signature certificate and a signature via any device thanks to electronic signature solutions in SaaS mode


To summarize, the digitalization of services and processes is helping to accelerate trade in France and Europe in many sectors. On a daily basis, the electronic signature facilitates interactions between companies, individuals and public organizations. Being able to choose the level of security adapted to the needs of companies also allows to rethink and modernize the way information and documents are accessible, managed and secured within organizations.

Start Streamlining Your Business' Operations & Enhance Security, Today!

Was this article interesting?
Share it!
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.

Latest Articles

engage-platform-effect-customer-service
May 09, 2024 • CM.com

Happy clients, happy agents: the platform effect in customer service

As a member of the customer service team, you stand on the frontline of customer interaction every day. In a world where customers demand quick and personalized service, long wait times, impersonal responses, or worse, incorrect answers, can quickly drive a customer away. Your goal, however, is to connect customers with your organization and deliver the best answers and service possible.

Engage peak moments in ecommerce end of 2023
Aug 03, 2023 • Customer Experience

Peak Moments In eCommerce: How To Keep Your Customer Service On Point

Customer service is essential year-round, but the pressure increases during the retail and eCommerce holiday season: sharply rising from November to December. More orders come in, which means more customer interactions.

mmc-msc-integrations
Jul 31, 2023 • Customer Experience

The Benefits of an Integrated Marketing and Service Solution

Consumers are nothing like the consumers of, say, ten years ago. They are more critical than ever before and have razor-sharp requirements. They expect speed, convenience, and reassurance right at their fingertips. Meeting these expectations is quite a challenge. Especially if the marketing and customer service departments operate independently, these departments need to work together seamlessly to serve today's consumers best.

Housing Association Image
Jul 12, 2023 • Chatbots

How chatbots can empower housing associations to deliver exceptional customer experiences

Keeping your promises to customers is important. We look at how automation can impact the entire customer journey for housing associations and their customers.

customer service team
Jul 07, 2023 • Customer Experience

The Future of Customer Service Starts with Multidisciplinary Teams

86% of consumers say good customer service can take them from first-time buyers to brand advocates. While excellent customer service is an essential focus of any successful brand, forward-thinking companies are forming customer-focused multidisciplinary teams to help create exceptional customer experiences.

benefits-electronic-signature
Jul 06, 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.

Return form customer about chatbot and personalization
Jun 17, 2021 • Mobile Service Cloud

8 Tips to Improve Your eCommerce Customer Support Experience

The rise of ecommerce has transformed customer expectations: Today’s consumers want a convenient shopping experience with the ability to quickly and easily resolve issues — the faster, the better. In this blog, we share 8 ways to modernize and scale your customer service experience and retain more buyers.

business-mess-enhances-your-customer-satisfaction
Jan 13, 2021 • Mobile Service Cloud

17 Ways Business Messaging Enhances Your Customer Satisfaction

The ease of communication between businesses and consumers weighs heavily on customer service. Emerging technologies offer numerous possibilities to start conversations with your customers. Conversational channels such as WhatsApp and Facebook Messenger are increasingly being used by companies to engage with customers. But how can you use these channels? To get you up to speed, we share some proven examples. Get inspired and enhance your customer experience today.

blog-sign
Jan 11, 2021 • Sign

Introducing Sign 2.0: New UX Design for E-Signatures

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