The Sins of the Contract-Signing Process

First, let’s examine the process of signing contracts. The traditional approach has many disadvantages that can negatively affect your customer experience. Why is it bound to fail?

• The traditional process is inconvenient. Customers need to book an appointment with their service agent at a physical branch—there are often problems with selecting the right location and time and reaching the branch. In the end, it is frustrating for your clients. It is also contrary to the optichannel banking approach.
• The traditional process is too long. Signing contracts is stressful, especially when the client has to wait for their appointment (for instance, because there was no suitable date to meet physically with the agent, so the signing had to be postponed). In the end, this builds a negative customer experience, which is later reflected in their engagement and loyalty.
• The traditional process limits your reach. If the client needs to be physically present to sign a contract, you won’t be able to acquire clients in locations where you don’t have physical branches. This means that your reach is limited—such a client will choose a competitor that is present closer to them or offers digital contract signing.

As you can see, the traditional contract-signing process has numerous sins—disadvantages that can affect your bank. Hence, you should embrace digital solutions with the power of eSignature.

What Is eSignature?

eSignature stands for electronic signatures—a digital indication of a person’s agreement to the content of a given document, as defined by the European Commission. It is divided into three different levels—each has more power but also more requirements to be valid.

Simple eSignature

A simple eSignature is nothing more than the most basic type of electronic signature. It can be as simple as a name written under one’s email, so it does not have much binding power in finance.

Advanced eSignature

An advanced eSignature is a more complex type of electronic signature. There is a set of requirements regarding it, namely:

• it has to be uniquely lined to and capable of identifying the signatory;
• it needs to be created in a way that the signatory can regain control over it,
• it must be linked to the document in such a way that if it is modified, the change in data can be detected.

Usually, this type of signature is generated using a public-key infrastructure involving certificates and cryptographic keys.

Qualified Electronic Signature (QUE)

This type of eSignature needs to meet all the requirements for an advanced eSignature, plus:

• it has to be created by a qualified signature creation device,
• it must be based on a qualified certificate for electronic signatures.

This is also the type that is usually used in banking.

How to Improve the Process of Signing Contracts with eSignature

The answer to the question in the title is simple: all you have to do is implement eSignature and use it in your digital banking services. Thanks to this, you will eliminate the sins, and enable your clients to conduct their business conveniently from the comfort of their homes.

But how can it be implemented in practice? Opt for a personal banking platform that already has this feature. For instance, the LiveBank platform is designed to let you operate as remotely as possible, and it includes signing documents with eSignature. Our solution is how you make your bank fully digital and embrace the power of online channels, so we highly recommend that you test it yourself.

The Takeaway

An eSignature might seem like a small feature, but it bears ultimate power. Thanks to it, you will be able to make your contract-signing process fully digital, reaching out to clients who live far from your physical locations and making the process much more convenient. Therefore, you should invest in it as soon as possible, as it will give you an edge against the ever-rising competition.

You may also read: The Role of Video Banking in Customer Experience

References:

1. https://ec.europa.eu/digital-building-blocks/sites/display/DIGITAL/What+is+eSignature