TECHNOLOGY
Why electronic
signatures are the
new norm in banking
What do ABSA and NLB, Lloyds TSB UK, the German Savings Banks, the French
Caisse d’Epargne and Unicredit have in common? They have all integrated
handwritten electronic signatures into their banking processes. By Rolf Schröder
T
Rolf Schröder
oday, nearly all kinds of forms can be signed electronically: applications
for account openings or new cards, loan contracts and transactions.
Paper-based document and contract signing processes are not only
inefficient, but also not environmentally friendly. Electronic signatures, on
the other hand, offer cost efficiencies, from cutting down on paper usage and
document storage right through to increasing productivity, thanks to a lower
administration burden. They also decrease the risk of fraudulent incidents.
As a case study, consider the Spanish Confederation of Savings Banks, CECA, which
installed electronic signature pads in more than 18 000 branches throughout Spain four
years ago. Since the installation of the e-signature technology, more than 300 million
documents have been signed electronically.
During these four years, CECA has also faced 38 legal incidents, 37 of which it was
able to resolve out of court, thanks to biometric data recorded by the e-signature pads.
When clients sign with the electronic pen on the pad or display, not only are images of
their signatures recorded, but also biometric data, such as the speed of writing and the
pressure exerted. CECA was therefore able to draw on this data to prove that the
signatures had been provided by the authorised persons.
In other words, in four years, CECA had to face only one real fraud case and thanks to
the biometric validation, was able to prove the case and support the fraud victim.
Using handwritten electronic signatures, banks can create a fully digital work flow, saving
massive amounts of paper, archiving space, and time spent handling documents. In fact,
the French BPCE group, the second largest banking group in France, expects to save up
to 365 million sheets of paper a year through implementing e-signature technology.
At the end of 2014, BPCE will have completed the roll-out of 25 000 stations equipped
with electronic signature displays.
There are currently over 10 000 Wacom signature pads installed in the South African
banking sector. Approximately 2 000 pads are integrated in banks in another eight
African countries.
There are also different e-signature products on the market for different applications.
For example, the difference between Wacom’s signature pads and signature displays is a
matter of what is displayed for the signature process. While the signature pads only show
a signature field, the signature display is able to present a full-size page. The technology
behind the pads and displays is the same for both product ranges.
Electronic signatures are legally enforceable and fully secure. They can assist in reducing
signature-process turnaround times, minimising paperwork bottlenecks and decreasing the
cost of paper processing and document storage. In today’s digital world, e-signatures are
the next step in creating a paperless, highly efficient financial sector.
Rolf Schröder is Key Account Manager eDocs at Wacom.
Edition 12 | BANKERSA
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2014/12/18 10:14 AM