previous icon Back to blog
Nov 03, 2020
5 minutes read

Top 10 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 a time-consuming process, and thankfully, there's an alternative.

The Electronic Communications and Transactions Act (ECTA) of 2002 allows for electronic signatures in South Africa.

The legislation in South Africa follows the EU Directive on electronic signatures. eSignatures may be used as a signing form by any business operating in the South African market, and they are handled the same as handwritten signatures.

It's a mechanism to guarantee the integrity of an electronic document and to authenticate the author. The electronic signature can't be cancelled or reproduced on another document and is impossible to counterfeit. Since 1 July 2016 – the eIDAS regulation (electronic identification and trust services) became law – its minimum legal value is the same throughout the European Union. This regulation specifies that the qualified electronic signature has the same status and legal effects as its handwritten equivalent.

It's no surprise that digital 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 implementing electronic signatures here at CM.com, we've compiled a list of the top 10 advantages of using 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 sectors like banking and insurance, the electronic signature makes it possible to conclude sales outside business hours or subscribe to online offers 24/7. An electronic contract will always be ready to be signed in seconds, reducing the 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 use a scanner to send it. 

2. Lower Costs

According to a study conducted by CM.com, the electronic signature can lower operating costs by around R 1,4 million in a year or so if it is used via a web application or by R 1,6 million through the integration of an API (based on 500 signed documents per month and two signatories per document). Indeed, the paper management of contracts and other documents are more expensive compared to the use of e-signatures (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. A 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

According to the eIDAS regulation, the use of an electronic signature provides three levels of security: 

  • Standard: a checkbox
  • Advanced: the identity of the signatory is linked to the signature
  • Qualified: each signatory must first identify with a trusted service provider. 

While standard or wet, signatures are easily counterfeited, advanced and qualified e-signatures have a higher legal value and can be used for high-value and high-risk agreements. These categories of signatures make it possible to guarantee the identity of the signatory while conforming to regulations on the protection of data (GDPR and POPIA), which aims at greater transparency and responsibility when it comes to the sharing of personal data.

5. Increased Sales

Potential sales can break down at any moment, which is why businesses must ensure that the sales journey is as seamless and hassle-free as possible. Asking customers or clients to print, sign, and scan documents is likely to lead to a sales dead-end. Electronic signatures, on the other hand, help streamline the sales process. This is great news for sales teams, who reportedly spend as much as 21% of their time on admin. With e-signatures, you can reduce this figure, so your employees have more time to get those deals over the line. 

6. Mobile Friendly 

The number of smartphone users has increased by a staggering 73.9% in the last five years. Today, individuals use their phones to conduct research, shop, manage their bank accounts, and much more besides. People prefer the flexibility and portability of mobile devices. With electronic signatures, individuals can sign important documents wherever they are - they simply need to have their smartphone with them. 

7. Happier Customers 

Customers and clients appreciate speed and efficiency. Sending documents electronically gives customers the time to read agreements carefully at their own pace and sign them with the click of a button. By allowing clients to sign documents electronically, you show that you respect their busy schedules. With a smoother document signing process, they’ll be more likely to conduct repeat business with your organisation.

8. Lower Environmental Impact

An average office worker uses approximately 10,000 sheets of paper every year, and that’s without even considering the environmental impact of manufacturing printer ink. With electronic signatures, there are fewer printouts required and fewer trees that need to be cut down. 

9. Reduces Errors

A single error within the contractual process can be extremely costly. Paper-based systems, including traditional signatures, are more likely to contain typos and other mistakes. With e-signatures, however, automation and validation processes can greatly reduce the number of errors that go unnoticed - something that your clients will undoubtedly appreciate.

10. Go Digital-First

In the business world, first impressions matter. With electronic signatures, you can show your clients that you are a modern, digital-native company that is keen to embrace innovative approaches to doing business. Digital transformation has optimised so many aspects of the business world - why not apply it to your contract signing process too?

Transform Your Document Signing With Sign

To summarise, the digitalisation of services and processes is helping to accelerate trade in the world across 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.

Find out how e-signatures can transform how you store, manage and secure your documents

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.

Latest articles

Sign e-sign blog image new feature
May 03, 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?
Sep 21, 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
Aug 10, 2022 • 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.

blogimage-sign-verzekeraar
Feb 02, 2022 • Customer Experience

How to Easily Digitise The Insurance Industry With Smart Solutions

Consumers are not yet used to handling insurance matters online and mobile, yet they prefer it. This means that insurers need to be accessible everywhere and at all times, but they are not yet responding to this sufficiently. KPMG's research among 70 executives of international insurers shows that they know this all too well. They expect to lose a large portion of their sales to InsurTech or FinTech companies. However, this is easy to avoid without shaking up the entire IT landscape. With CM.com's intelligent solutions, insurers can easily and quickly take steps towards digitalisation. In this blog, you can read which steps.

sign-digital signature blog
Jan 19, 2022 • Sign

How Sign Makes Signing Your Rental Contracts Easy in Minutes

Real estate businesses are constantly in search of technologies that will help them sell properties more quickly and effectively. However, the COVID-19 global pandemic forced businesses to innovate and re-evaluate how they conduct businesses. In these unprecedented times with almost half the world on some form of lockdown, businesses across the globe are forced to look for practical solutions to complete transactions.

sign-digital-certificates
Sep 28, 2021 • Sign

How Digital Certificates Can Add Trust Into Your Contract Signing Process

As more and more everyday transactions take place online, whether they include individuals, corporations, or a combination of the two, it is more vital than ever to verify digital identities.

sign-wet-dry-signatures
Aug 12, 2021 • Sign

Weighing Up the Benefits of Wet and Dry Signatures

Businesses are increasingly adopting dry or electronic signatures to streamline contract processes, reduce their environmental footprint and lower costs.

blog-sign-candidate-experience
Aug 12, 2021 • Sign

How to Ensure a Smooth Candidate Experience Without (digital) Hurdles

We all understand the concept of “customer first” and for most businesses, providing excellent customer service is one of their top priorities. Despite the competition for fresh talent on the job market, this concept does not guide how people think and conduct throughout the hiring process. When it comes to HR and recruitment, a digitalised process may be the way of the future.

benefits-electronic-signature
Jul 27, 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.

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