The use of e signature for financial services is quickly becoming the got to for many industries in recent times. The common industries such as automobile finance industries have actually started to understand the important impact of digital adoption that brings profitability and efficiency.
In this blog, we will be talking about the ways in which electronic signatures online actually help in the financial industry.
The important thing to understand here is that it takes a lot of time to buy a new car and one of the most pertinent reasons behind this is an abundance of paperwork that is required.
Once you start to think of the deals that can be streamlined if the time to complete was cut in half or even more, the implementation of electronic signatures in the financial industry will make more sense to you.
Numerous documents are interchanged between the customers and dealers within the automobile industry and even though the information on these documents is important, the time spent in filing them manually is not.
As the world adopts and uses the power of digitization, it has become even more important than ever to transition into the digital era while taking benefit of the options that this industry is capable of offering.
Instant gratification is expected by consumers and electronic signatures help the automobile finance business to adapt to these growing standards.
There is no longer any need for extra paperwork because all devices offer a suitable way to fill the ever-growing gap between the digital expectations of the customers and other company requirements.
In this case, the dealers must realize the need to digitize their processes for maximizing the cost of businesses and adhering to the speed and simplicity that these transactions can possibly reach with the devices.
The era that we are living in right now has made it possible to make digital transactions happen instantly. With the use of technological advancements, there is no need to be present in the store. Rather, one can engage in the financial industry anytime and at any place.
5 Uses of Electronic Signature For Financial Services
1. Significant Reduction in Errors
A financial industry needs many kinds of paperwork to be done because the investment made in the purchase is large. While completing this paperwork manually, one can easily miss out on a signature space.
Now think of the disappointment that you will possibly feel while completing this paperwork only to discover that some important spaces were missed.
This happens oftentimes and it ends up delaying the entire process and even leads to a loss of sales. In this scene, the implementation of electronic signature in the financial industry reduces the error rate remarkably while also improving productivity substantially.
Since there will be a reduction in the errors, the companies can actually close more deals without risking any customers. To put this in specific terms, the automated processes of creating an electronic signature in word document can also reduce the financial impact of human error.
These errors usually result in additional shipping costs or a loss of the customer completely. The functionality between online signatures and each financial company offers a seamless and successful sales interaction leading to an enjoyable experience for both parties.
Electronic signatures have a vital capability of being flexible. This means that you have the freedom to operate the electronic signature software anywhere you want. This aspect also widens a company’s capabilities because customers can actually engage in sales operations all around the world at an independent personal discretion.
Most importantly, the software is such that it offers an ease of testable, signable, and comfortable online documents that can be accessed easily.
Hence, making a move to electronic signatures makes a big difference in the ease of buying a car while creating simple sales for the auto retailer.
In the financial industry, e signatures are easy, quick, and more comfortable than going to the dealer, bank and wasting so much time and money in the entire process.
3. Preparing Contracts
There are several ways in which an automobile finance contract for e-signature can be prepared, and out of them all, one of the easiest is creating an electronic signature in PDF.
You have the option of either uploading or scanning an already existing template, changing the content to highlight some needs of the new buyers, and adding all the important signature fields whenever you feel necessary.
In addition, there is also an option to create an official contract from the beginning right within an application. While preparing a contract, you can very easily add multiple signers, signature fields, and form fields as well as the signing date, and the signer’s title.
You can also place a request for a compulsory attachment such as a photocopy of an ID while adding a relevant date of expiry for indicating the last date until which the documents must be signed.
4. Quick Sales
Financial companies are always in pursuit of revolutionary technologies that can help them in selling automobiles quickly and much more efficiently.
You can implement an e-signature for financial services while guaranteeing enhanced ways of production, management, and transmission of legal documentation that is involved in an automobile purchase.
Being an experienced automobile finance executive, one will most likely be able to appreciate the different auto-fill template features as well. It helps in giving you the freedom to complete your business tasks quickly, create better, and distribute better because the e-sign documents can be signed at any time, any place, and on any device.
The use of an online signature allows increased security for each individual transaction. Since there is a use of the digital process, real-time and automatic monitoring is possible which eventually ends in reducing the chance of fraud and the time taken to detect that fraud.
There is never a stage when the document leaves the control of an organization that holds the information and it also offers a clear audit trail history.
You can see the date and time at which the document was accessed and signed and from which IP address. In case you think that the document is challenged then you can quickly trace and reconstruct the events.
This process is very reassuring for financiers because they do not have to worry about any security problems while dealing with a customer. This enables the loans to be processed quickly and more dependably because all the information is clearly visible in all steps.
How Electronic Signature is Used in the Financial Industry?
1. Account Opening
In the United States, secure eSigning complies with the Patriot Act. With electronic signatures, applicants may create an account from anywhere, making your organization substantially more appealing to potential members, particularly younger members who have learned to anticipate fully automated processes.
According to the Aite research organization, when financial institutions offer entirely online account opening processes, new consumers are far less likely to abandon their applications in favor of another institution.
2. Loan/Credit Applications
Electronic documents and electronic signatures in the financial industry speed up face-to-face and online loan applications, enhance the customer experience, and greatly shorten the time between the initial interest of the customer and the formal acceptance of the loan.
The loan application process is faster and less sensitive to errors that need to be corrected (such as missing signatures, using electronic signatures), thereby reducing customer loss during the entire application process.
With a fully digital file system, it is easier and cheaper to comply with federal rules regarding the safe storage and protection of these files.
3. IRA and 401k Rollovers
Retirement rollovers can entail large sums of money. In order to entice rollovers, investment firms frequently tout their inexpensive account starting costs or brokerage charges.
Another method an investment firm may differentiate itself from competitors and simplify the onboarding process for new customers is to enable a simpler e Signing procedure.
Conclusion – Electronic Signature For Financial Services
It can be said that the use of e signatures for financial services will help in bringing the financial industry to an entirely new level. With the reduction of errors and added comfort, speed, security, and cost-saving capabilities, the advantages of adopting electronic signatures are very clear.
Hence, if you are in the finance business then take steps towards going digital and taking benefit of electronic signature in the realm of the automotive trail.