5 Use Cases of e-Signature in Banking

5 Use Cases of e-Signature in Banking

July 7, 2022
Connect & Support People

In banking, e-Signatures are an important aspect of the digital business strategy. This is because financial institutions are interested in removing paper from their business processes. There is no doubt that this approach can accelerate digital transformation.

However, electronic signatures in online banking do not only offer important advantages to financial services: Private and business customers also profit from using them.

Useful tool in a highly digitalized world

Electronic signatures are a special kind of signature that is used in internet banking. E-Signatures make it possible to conclude a legal agreement in a digital environment and are considered to be an equivalent to signing on a traditional paper document.

Different methods are used to express consent or agreement digitally:

  • Terms and conditions can be opened and confirmed by clicking a button.
  • Signing electronic documents works either by clicking a button or capturing one’s own signature.
  • Verbal confirmation is also possible due to an audio or video recording, for example during Video Banking.
  • Authenticating one’s own identity via an electronic identification solution.

Important advantages of this new approach are obvious: the use of the e-Signature in banking improves the customer experience, protects the environment and makes location-independent banking possible in the first place.

Electronic vs. digital signature

Although many people often use the terms electronic and digital signature in banking as synonyms, these are two different approaches.

  • Digital signatures are equivalent to the embossed seal on a paper document and are created on the software side. It allows a document to be uniquely identified. At the same time, this signature ensures that the document has not been altered or forged. It thus provides a method of guaranteeing integrity.
  • Electronic signatures are made via online banking and are equivalent to a signature on a paper contract. They link a person or group of persons to a document. Its purpose is to indicate the signatory’s intention and thereby create a binding agreement.

In summary, digital signatures prove that a document is genuine, while the e-Signature in banking certifies the signer’s agreement.

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Possible applications in everyday banking life

In everyday banking, there are numerous opportunities to use e-Signatures.

Case 1: Opening a bank account

Implementing electronic signatures to open a new bank account is the classic use case. This is because the digital account opening process offers financial companies immense potential. Instead of driving to the bank, customers open the account themselves using the necessary forms and an associated bank signature form. This saves time for both sides, enables account opening independent of location and time, and conserves capacities. Thus, electronic signatures are a win-win for bank branches all around the world.

Since customers from every business sector now expect a smooth online process, these options make it easier to attract customers.

Case 2: Private banking

The use of electronic signatures pays off especially for private users. Controlling one’s own wealth management via a digital sales process reduces paper documents and saves time.

One of the reasons for this success is that more and more people prefer digital interaction. At the same time, this approach equips bank advisors with all the tools they need for the best possible client interaction. Multi-channel client engagement is on the rise, helping many clients purchase significantly more financial products than before.

Case 3: Loans and credit

When it comes to lending, the electronic bank signature form is being used primarily for small business and consumer loans. The case of Erste Bank Österreich shows that this modern technical approach promotes business relationships. The use of e-Signatures in banking makes it possible to check loans and financing contracts more quickly and therefore offer a better service. This in turn increases customer acceptance and reduces the dropout rate for loan applications.

Case 4: Banking for businesses

Simplifying business with commercial customers is a particular concern for most banks. This is why they benefit from using e-Signatures in banking, as this allows them to provide services more quickly. This eliminates long processes of onboarding potential customers.

Case 5: Private construction financing

The complexity of the mortgage business makes this area predestined for digital transformation. That’s why e-Signatures are of utmost importance within this field. Customers want a high level of convenience and a faster process, which is easily achieved by using e-Signatures. In doing so, it improves the digital experience at home and allows financial companies to automate their own processes along the way.

Implementing e-Signatures cleverly with TeamViewer Engage

Numerous studies show that using e-Signatures is beneficial in banking. To ensure a smooth process, however, the right technical equipment is essential.

With Engage, TeamViewer provides the necessary basis for successful customer retention in the financial sector. In addition to benefits such as high security and GDPR-compliant data storage, it offers special features to successfully apply electronic signages. Combined with document co-browsing, it is possible to sign documents directly in a single seamless process.

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