Like cheques, hand-written signatures are increasingly rare in a digitised world. These days it’s rare to have to sign documents in person, with everything from bank account applications and home conveyancing taking place via electronic means.
But digital document traceability is incredibly important for some businesses, such as lawyers and the medical profession, and this is only likely to increase. ESignatures, or electronic signatures, provide a modern and efficient solution to the needs of professionals and their clients who require a document to be signed but can’t, or don’t want to do so in person or create an analogue physical copy that could get lost or compromised.
These statistics from Statista show a steady upstream growth in eSignature usage into 2030. So, if you are a business and considering how best to use this technology, read on for some key points to consider.
What is an eSignature?
An eSignature is a legally binding signature used in official documents like a loan agreement or consent form. They are a lasting record of a signer’s intent.
Why do organisations use eSignatures?
ESignatures are convenient and cost-efficient. Instead of posting a document and waiting for it to be posted back, a document can be signed in minutes or even less. It takes little human resources, frees staff up for other things and reduces the need for physical storage to store documents.
ESignatures also reduce the likelihood of data loss or theft, though obviously, cyber attacks are still relevant. Reputable legal firms such as https://www.parachutelaw.co.uk/loan-agreement will have appropriate cyber protections in place to keep all of their client data and eSignature documentation safe.
Types of ESignature
ESignatures are used by highly regulated industries and in the UK they must be compliant with the Electronic Identification and Trust Services for Electronic Transactions Regulations of 2016. There are three types of digital signatures:
Simple (SES)
This type is for everyday transactions. It does not require ID verification.
Advanced (AES)
These are for higher-value transactions and require higher levels of authentication, such as two-factor authentication, or providing ID. These signatures create a digital certificate. An example of a common use would be an employment letter.
Qualified (QES)
This type is for highly regulated transactions. A QES offers the highest level of trust and is regarded as being equal to physical witnessing and attestation.