eSignaure Law

Employee Onboarding using Electronic Signatures

Employee Onboarding using Electronic Signatures

Employee onboarding is a crucial focus of organizations in 2021 as pandemic has completely wiped off the traditional onboarding process, forcing every task to complete remotely. It has resulted in the unexpected extension of the hiring timelines from weeks to months.

The onboarding process is the systematic transformation of promising candidates into top-performing candidates by following these steps:

Welcome Mail: If the employee is selected, the HR sends a warm welcome mail, onboarding forms & offer letters.

Offer Acceptance: Once the employee accepts the offer, the company will set up a quick call to review the form, policies & benefits.

Waiting Period: During the waiting period, the new hire may be open for offers from other companies. It is always a good idea to plan the waiting period during the employee onboarding process.

The Joining Day: This is the day to welcome the new joiners. HR managers must make sure that the new hire feels welcome & comfortable.

Coordinate with new departments: It is essential to introduce and notify your coworkers & managers about the new hire. You can start by scheduling an orientation session or welcome meetings.

Training & orientation:   This phase provides new hires with crucial information about the company’s teams, processes, and company policies.

Probation period: The objective of this period is to check if the hired employee is a fit for the organization. If the new hire meets the company expectations, then he is a confirmed employee. The probationary period may last from three to six months.

Electronic signatures have proved to be the most incredible helping hand to organizations. They are the quickest way to end enormous paperwork, ensuring authenticity and winning crucial employer trust to attract top talent, shorten their learning curve, and make them an inseparable organizational asset.

Moreover, worldwide electronic laws have reinforced the credibility and awareness of eSignatures, expanding its influence for employee onboarding and daily business operations in every possible sector of the industries.

Here are top reasons to use e-signatures for employee onboarding:

1) Aligns with a digital vision

In the digital age, organizations don’t want to survive. Instead, they want to thrive and ensure that their promise of thumping growth, cost savings, and employee productivity align with their digital vision. So, the entire focus is on digital transformation inside the organization and the results during its usage phase.

In 2021, it is evident that technology is not a choice anymore. It’s a no-nonsense necessity. If you fail to transform your business digitally, every second, a new competitor is ready to eat up your revenue and market share.

eSignatures are much easier to adapt and need comparatively lesser adaptation & implementation time than any other digital technologies in the industry.

Suppose you are a growth-hungry company eyeing digital transformation. Then you need to choose the best eSignature service provided by vendors who understand your business very clearly.

Once the eSignature solution integrates with your day-to-day business processes, you need a few clicks to complete business processes efficiently from virtually any device in real-time.

2) Speed and Convenience

Electronic signatures are much faster & process documents quickly than handwritten signatures, making speed and convenience one of the top reasons for using them in employee onboarding.

The current pandemic situation has delayed the joining of new employees due to worldwide travel and movement restrictions.

With eSignatures, one can rapidly share the employee agreement with the new hires in a blink of an eye. After that, they can conveniently sign it on a computer or any portable device, regardless of their geographical location.

Another critical point is that using e-signatures adds to the sense that your company culture is forward-thinking and geared toward efficiency. There is no need to print and store the online document as physical records. It helps you save good money annually as you don’t need to buy office stationery like ink and paper again & again.

Document tracking is another appealing feature of e-signatures.

Another important thing, you don’t have to run helter-skelter to get your document signed by new hires.

Even if the new employees have not signed the papers, you know about the esigning status due to the document tracking feature. You receive an immediate notification when the new employees sign the contract document.

These popular features of eSignatures make employee onboarding a breeze for HR departments.

3) Helps in Automation

Your new hires can complete the employee onboarding process remotely from anywhere using the eSignature application.

The HR department and the new hires do not have to depend on handwritten signatures, printers, scanners and the mail system to sign-copy-scan and mail the document.

The credit of the employee onboarding time getting lengthier goes to the above traditional document exchange process between the new employees and the HR department.

Electronic Signatures authorize you to send bulk onboarding documents to multiple new hires at the same time.

You do not need to remind other signees to sign the document as they get application notifications for eSigning.

Also, none of the parties needs to carry the physical documents. Once everybody has signed it, they are safely stored in the cloud storage.

You can reduce the signing process to a few minutes and clicks by automating the paperwork flow with eSignatures.

4) Centralized document management

Every human resource department has to get involved in document management after printing, storing, scanning, and uploading the documents of every employee.

It is one of the most demanding tasks as it takes lots of time to track and organize employee contracts.

The digital signature feature enables the HR department to centralize contract management and store the contract data in the cloud, accessible at any time via the eSignature dashboard.

There are multiple benefits of centralized document management with eSignature solutions:

Greater control: If files are stored in one central location, implementing controls related to retention and deposition becomes easy.

Efficient business operations: It actively encourages efficient operations because all files are located centrally, saving employees precious time to retrieve the HR data.

5) Decreased costs of printing and storage

HR professionals handle large amounts of paperwork every day, ranging from employee onboarding, transfer, contracts, performance appraisal documents, exit process, and many more things.

Using paper documents for newly hired employees can be expensive as company policy forms, confidentiality agreements, and employee handbooks are some of the crucial things that need to be reviewed by new hires. It is estimated that any HR department might be printing 50-100 pages per new hire. That’s a lot of ink, paper, and time spent preparing for a new hire’s first day.

Once you print these documents, you will have to find a place to store the published information that may inflate document storage costs.

Organizations using electronic signatures save huge on:

  • Paper purchase costs
  • Printing/photocopying costs
  • Paper delivery costs
  • Paper scanning costs
  • Paper storage costs
  • Paper disposal costs
  • Document retrieval costs

6) Security

Employee documentation can contain sensitive information from both the new hire and the organization, such as an employer identification number (EIN) and Social Security number (SSN). Those documents and credentials must be kept secure.

eSignatures use tamper-evident technology to detect any changes made to a document after each signature, lowering your risk of fraud. Furthermore, identity authentication tools, such as knowledge-based authentication, ensure that only authorized people access the documents.

These security measures ensure that confidential company information is challenging to duplicate, scan and edit.

Conclusion

eSignatures are a proven world-class technology allowing HR departments to complete the onboarding process efficiently, saves time & money while improving retention of employees.

Sign up for a free eSignature trial and see what LunarPen solutions can do for your business and help organizations in employee onboarding.

Frequently Asked Questions

Can you sign an employment contract electronically?

You can sign an employment contract electronically if you have an option to do so by the hiring company.

One can sign the employment contract and send them to the hiring company’s human resources in a matter of seconds using your smartphone, laptop, or any other portable device.

eSigned agreements save money and time by eliminating the need for printing, scanning, faxing, and overnight delivery.

You can send your eSigned contracts using the LunarPen App hassle-free anytime, anywhere.

How do you sign a contract virtually?

You can sign a contract virtually by following these steps:

–       Upload the sales contract document that needs your signature

–       Use LunarPen’s signed document sharing feature to share the document with a closed group of people

–       Fill out subject & message details to explain the agenda of signed documents to the recipients

–       Use the LunarPen interface to esign your document by inserting fields like name, initials, signature, signature date, and checkbox

–       Use customized options to draw, insert or upload your signature

–       eSign the documents and send them to the recipients

Are electronic signatures enforceable?

Electronic signatures are valid globally across every known company in the world due to the presence of eSignature laws like

–       eIDAS Act

–       ESIGN Act

–       UETA Act

–       IT Signature Act

These laws ensure that eSignatures are legal and enforceable in every country of the world.

What are the benefits of electronic onboarding?

Here are the top four benefits of hiring your new employees electronically:

Increase accuracy: Electronic onboarding places the information in the hands of the person who knows it best—the employee. It helps in increasing the accuracy of the signed documents.

Share documents quickly: You can share documents at the tap of a button using digital signature solutions as they are accessible on laptops, smartphones, or digital devices.

Create a personalized experience: Rather than sitting in a room with a clipboard filling out paperwork, you can spend more one-on-one time with your new hire and start interacting with them on a more personal level.

Ensure compliance: With electronic onboarding, you can ensure that no paperwork is overlooked when it comes to new employees. When compliance rules change, instead of actual processing paper, a simple click of a button is used to delete or add new paperwork.

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How to choose the best eSignature Service

How to choose the best eSignature Service

eSignatures are the gold standard for efficiency and simplicity in eCommerce, Banking, Insurance, Real estate, Finance, and other emerging sectors.

As per the latest market research, the valuation of the Digital Signature market was USD 2.03 Billion in 2019 and would reach USD 17.72 Billion by 2027, growing at a CAGR of 31.1% from 2020 to 2027.

E-signature software makes document processes speedier, efficient, and consistent for every task, right from closing sales contracts, team member onboarding, online banking, filing tax returns, esigning legal documents, and many more things.

The global adoption of e-signatures is accelerating at a rapid pace. The key factors driving the growth of the electronic signature market include a growing government emphasis on paperless bottlenecks, rising consumer demands for digital communication, and increased awareness of the legal acceptance of e signatures.

It is not easy to compare and choose an eSignature solution as many companies in the international market are claiming to be the top eSignature service provider.

In that case, you must follow this checklist to decide the best eSignature service for your organization.

1. Precise feedback from eSignature users

Ask for detailed feedback from eSignature users during the trial period- who may be employees from your company or the clients accessing the application to eSign the contract and agreements.

Different users may have different perspectives and views about the eSignature application.

An office team member will judge the application based on smooth user experience, time savings to focus on essential tasks, and convenience to use it on any device, any time.

The company must seek an answer to these questions from its employees before deciding about an esignature software:

  • Is it easy to use the application?
  • Do I need the training to use the application?
  • Does it help free employee’s time to do meaningful work?
  • Does it help in reducing the use of paper documents?
  • Does it accelerate reviews and approval processes?
  • Does it help track document signing progress?
  • Does it help eSign the documents from anywhere?

A client may have different views and questions about the e signature application:

  • Is it easy to use the eSignature application?
  • Can I trust the esignature application?
  • Is my eSigned document safe?
  • Would it save time in esigning the documents?
  • Are my eSignatures legally binding?

2. Is the eSignature application compliant with laws around the world?

The eSignature service must be compliant with major electronic laws like GDPR, eIDAS, and the ESIGN act.

GDPR

Suppose your business organization transacts with other companies globally and is looking to implement electronic signatures. In that case, you must ensure that the eSignature service provider demonstrates full compliance with the GDPR requirements.

eIDAS

The eIDAS regulation has two focus areas like Electronic identification (eID) and Electronic Trust Services (eTS), and must recognize three distinct signature types like

  • Standard electronic signatures
  • Advanced electronic signatures
  • Qualified electronic signatures

ESIGN & UETA Act

Two bodies of law in the United States govern electronic signatures and their transactions in the Global and National Commerce Act (ESIGN) and the Uniform Electronic Transactions Act (UETA). They are collectively known as the US eCommerce Laws.

3. Does your eSignature vendor understand your business?

Although all e-signature solutions help organizations remove the paper-based method of acquiring wet signatures, some vendors can fall short when it comes to being aware of industries’ specific requirements related to prospective clients.

In highly regulated industries, such as the eCommerce, finance, law, construction, and insurance, it is crucial to work with an e-signature provider:

  • Who understands the day-to-day challenges of your business
  • Understands how e-signatures can fulfill your business needs
  • Who knows how their services would streamline business operations
  • How would it help companies cut costs in their respective sectors?
  • Who complies with the regulations that are relevant to your organization
  • Who complements the way of work in industries of different sectors
  • Who provides cost-effective IT management

4. Security of electronic signatures

Data loss, breaches, malware, and viruses can harm your company’s reputation. You’ll need adequate security assurance when looking for an electronic signature vendor. You must check if they provide these security features:

User verification: User identities can be verified using ID cards, access keys, and digital certificates.

Audit Trail: The Audit Trail feature is a digital record maintained by the e-signature service.

Multi-factor authentication: Protects your document, ensuring that only authorized persons have access to them.

Document Verification: It ensures that a document remains unchanged after being signed. In case of edits to the document, the signatures are rendered invalid.

Secure storage: Please check if the esignature service providers use highly secure cloud storage solutions like Google cloud.

Security: To ensure that no one is spying on your connection, ensure that the service always utilizes an HTTPS connection.

5. User Privacy

The privacy of the data as a customer should be your top priority before finalizing an eSignature vendor.

You have to ensure that the esignature service provider provides complete privacy of your electronically signed documents.

Only invited employees should get the access and edit request to esign the document. There should be no scope of the document getting leaked outside the company network and accessible to uninvited employees.

It would be of great help if you seek answers to these questions from the service provider:

  • What type of user data is collected by them?
  • Are they collecting any personal user information?
  • What do they do with such sensitive information?
  • What are they doing to protect this information?
  • Is the collected data safe from leakage?

6. Scalability

You want your company to keep growing and moving forward, and hopefully, you want to keep using the same resources you have now in the growth journey.

It is also true for eSignature apps; you have to ensure that the application use evolves with your business.

An excellent way to check this is to:

  • Look at the service packages offered by your eSignature app
  • How many users can be added by the company?
  • Package wise advanced features & functionalities

Additionally, you must seek an answer to these questions:

  • Is the digital signature scalable to meet the needs of the company today and in the future?
  • Would it allow continuous modernization of your business?
  • Is this application usable by other departments of the company?

7. Cost-Effectiveness

Is it justified to spend money on an eSignature application? How would it benefit the company in the long term and help streamline the day-to-day business operations?

To answer these questions, you must compare the features, benefits, annual pricing, user reviews, and ratings of different eSignature services before actually investing in a new one.

The cost-effectiveness of a software application is not only about the cheapest pricing but a combination of

  • Ease of use
  • Convenience in using the application
  • Positive impact on business efficiency
  • Improvement in employee productivity
  • Business hour savings after using the software

8. The flexibility of the application

It is advisable to use an e-signature solution that merges well with its existing processes and workflows.

eSignature buyers must ask themselves:

  • Would the application support employees work from home?
  • How many portable devices are supported by this application?
  • Would it support the business if the number of employees increases?
  • Would there be future updates for the software?
  • Can the software adapt as per your organizational changes?
  • Would the vendor be able to adapt to your ideal process map?
  • Is it possible to make quick & easy changes in your processes in the future?

9. Support

You will always need good, responsive support from the e signature service provider if there is any problem in using the application.

A good practice is to immediately reach out to the customer or technical support representative during the trial period and check out if they provide active support if the problem arises.

Another good way is to read customer reviews and ratings and check out the responses from other customers.

Most of the eSignature companies offer a free trial to use their applications. Use the trial period to thoroughly test the electronic signature application for user experience, task completion speed, and security of the eSigned documents.

Sign Up for a LunarPen FREE account to confirm the checklist items and start using the best e signature service today.

Conclusion

Asking yourself these questions before finalizing an electronic signature software will help you choose a solution suiting your business needs. Follow this checklist to select the best eSignature service for your organization.

Reach out to our experts to get started with electronic signatures today.

Frequently Asked Questions

How do I choose an electronic signature solution?

You can decide the best eSignature software based on the below factors:

  • User experience
  • Ease of use
  • Data privacy
  • Security level
  • Law compliance
  • Compatibility
  • Customer reviews
  • Responsive support
  • Value for money

Is LunarPen legally binding?

Yes, electronic signatures created using the LunarPen application are legally binding. It adheres to eSignature laws like the ESIGN Act, eIDAS Act, and the GDPR law, allowing any company to do business globally.

Can I get a free electronic signature?

Yes! LunarPen lets you use electronic signatures for free. You need to SIGN UP for a free account.

How can I send my signature for free?

Follow these simple steps to send your signature for free:

  • SIGN UP for a free eSignature account
  • Create or upload your document that needs your eSignature
  • Choose the email IDs of the persons necessary to sign the document
  • Use the LunarPen interface to eSign your document
  • Receive esigned documents by email
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How eSignatures are Saving Our Planet

How eSignatures are Saving Our Planet

Take a minute and look around you; You will see tonnes of papers in our daily lives.

It isn’t easy to imagine a world without paper!

We use paper for data storage, print newspapers, magazines, keep track of transactions, and so on. Students use it for studying, research with books and notebooks, as well as extra notes. Offices use it for printing and storing different records physically. If you visit a post office, you can see that every collected mail is paper made.

According to the researchers, human activity led to the destruction of 15 billion trees every year, reducing the green cover on our planet by 46%.

A paper may appear harmless to you! But in reality, it has caused more significant environmental damage to our planet:

  • Deforestation: 9,541,559 hectares of forest were cut down or burned globally in 2021, which has a whopping 11.3% contribution to global emissions
  • Pollutants: Paper & pulp industries are responsible for producing 100 million kgs of harmful contaminants like SO2, H2S, CIO2, CO every year
  • Waste disposal & recycling: Paper waste disposal & recycling is the main problem as 40% of the total waste is paper waste contributing to 71.6 million tons of waste annuall

Now let’s look at some of the official use of paper:

  • An average employee uses 10,000 sheets of paper every year
  • Sending details on paper costs up to 31 times the original price (printing, copying, postage, storage, filing, recycling, etc.)
  • Each year 7.5 billion documents produce 15 trillion copies of the original documents.

The most prominent observation from the above statistics is that the more you use paper, the more demand is created in the paper industry to produce them every day.

What if we reduce our paper consumption, go green to save substantial operational costs, and transform your company into an eco-friendly company?

How to achieve this feat superfast? The answer is using esignature applications.

Here is how esignatures are saving our planets:

  • Get rid of storage concerns

A standard piece of paper uses cellulose wood fiber strengthened and glued together by strong hydrogen bonds. Suppose the storeroom having paper documents is exposed to hot, moist, and wet conditions. In that case, they are easily destructible—such concerns associated with paper storage force organizations to keep the paper documents in temperature-controlled environments. As paper documents take huge space, such document storage facilities come at mammoth annual costs.

Businesses using eSignatures don’t have to worry about storing paper documents, as documents are stored in electronic format using secure cloud storage managed by third parties like Google, Microsoft & Amazon.

Companies using eSignature solutions save huge costs (power, rental & maintenance bills) associated with the storage of physical documents and make a remarkable contribution in reducing the toxic fumes emitted by power plants, preserving natural resources, and protecting habitats from degradation.

  • Eliminate paper wastage

Some documents are printed, copied, and mailed multiple times to fulfill a company’s requirements, but employees often print unwanted copies of the papers unnecessarily.

It also happens that people require several copies of the document for different purposes and carry document copies with them. The best examples are students using temporary notes for their examination, doctors’ prescriptions for illness, old newspapers, paper bills after shopping, paper envelopes used for mailing paper documents, and many more.

When the purpose of these documents is over, then they are thrown off in the dustbin.

The result is excess paper wastage.

Electronic signatures enable users to sign documents electronically rather than print, sign, scan, and return them by mail.

Companies can actively put a curb on paper wastage using eSignature systems and help our environment breathe better.

  • Reduce harmful emissions from vehicles

An important use of paper is to sign essential contracts and agreements.

There are several instances when the new contract has to be sent to an individual for signature and then sent back to the company. Often, the parties associated with the contract or agreement must travel to a familiar location to complete the deal. They have to use train, flight, personal, or transport services to travel or send the paper documents to the owner or receiver.

If you are using transportation services to travel, send or receive the contractual documents, you actively contribute to multiplying the greenhouse gases responsible for climate change, extreme weather conditions, wildfires, droughts, and a lot more.

eSignatures reduce harmful emissions from vehicles by esigning essential contractual documents without moving out from your location.

  • Get rid of plastic ballpoint pens and refills.

Plastic ballpoint pens are everywhere. They are at home, work, and school, but they are just as polluting as plastic bags and straws because as the ink runs out, you have to throw it away.

All disposable plastic pens and refills contain toxic materials like lead, end up in waterways, landfills, and other places with the harmful content trickling down to the soil and the groundwater table, causing considerable damage to the natural reserves and aquatic life.

As ballpoint pens are not biodegradable, they are a big nuisance for the environment as they can take more than a century to decompose. Nowadays, we have already started seeing the ill effects of plastic in our environment, like microplastics found in fruits & vegetables and plastic getting into the gut area of animals.

eSignature helps you get away from the daily issue of writing documents with a plastic pen. You can create and esign the documents online. If businesses use eSignatures, they can minimize stationery expenses in the workplace. Secondly, they can do their bit in ensuring a greener environment by using fewer plastic pens wherever necessary.

  • It helps reduce electronic waste.

Several electronic products come towards the end of their product life, are irreparable, and have to be thrown away. Offices use computer monitors, printers, scanners, copiers, fax machines, and many electronic devices. Such old hardware can be recycled and disposed of properly. But if not done correctly, they have a horrible effect on the environment as they are non-biodegradable and can lay as indestructible waste on earth for centuries.

How?

When electronic waste is warmed up, toxic chemicals are released into the air damaging the atmosphere, causing colossal damage to human blood, kidney, and central nervous systems.

Organizations using eSignature solutions have significantly less dependability on external hardware devices for the daily task of printing, scanning, and mailing the documents. Employees can use the electronic signature application to create-edit-eSign-Email the documents. It eliminates the need for printers and scanners and helps the companies to do their bit in safeguarding the environment from e-waste.

eSignatures reducing carbon footprints and protecting the environment are not the only benefits of eSignature solutions.

Here is how your business can benefit from eSignature solutions

  • Legally recognized

eSignature applications are lawfully recognized by countries worldwide as the ESIGN Act and the eIDAS Act. These laws help your organization to do business globally.

  • Improved Customer experience

You get instant access to services using eSignature solutions. Waiting time to activate a service like opening a bank account, shopping online, or SIM activation reduces from weeks to few hours, resulting in improved customer experience.

  • Increase in productivity

eSignature technology helps increase productivity as it lets you focus on essential tasks by avoiding time taking activities like printing, scanning, copying, and mailing physical documents.

  • Positive return on investment

You get a lot of direct savings after switching business operations to a paperless workflow. 81% of digital signature users saw a payback in 12 months or less, and 25% saw ROI in three months or less.

CONCLUSION

Are you looking to make your business greener and eco-friendlier in 2021? Learn here how LunarPen benefits your business to achieve swift digital transformation. We are the global leader in eSignature applications and help business organizations manage proposals, NDAs, contracts, and agreements. Our mission is to assist you in digitizing processes in which we are experts while maintaining the protection, confidentiality, and legality of your business operations at all times.

Frequently Asked Questions

How do electronic signatures hold up in court?

Electronic signatures will hold up in court as long as they authenticate the documents. The best way to ensure authentication is to use the LunarPen e signature solution backed by different esignature laws like the IT Signature Act, eIDAS Act, and the ESIGN act.

Are electronic signatures safe?

Electronic signatures are safer than a wet signature as the esigned documents are accessible on the cloud. The encryption technology makes it impossible to duplicate and use the signed documents for illegal purposes.

How do I convert my signature to a digital signature?

You need to follow these simple steps to convert your signature to a digital signature:

  • Use a piece of paper to do your signature
  • Scan the signature using a scanner app
  • Crop to capture the signature and save it
  • Copy, paste & use the saved signature for a new document.

How are digital signatures verified?

One user generates the digital signature, and another user checks the signature. The signatory and the verifier each have a private and public key for the completion of each operation.

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Industries That Can Benefit From eSignature Solutions

Industries That Can Benefit From eSignature Solutions

Moving fast in business is crucial for survival! You move slowly, and the rising competition devours your market share. eSignature solutions help companies to minimize delays with paperwork and move things faster. They cut the turnaround time by 90%, which means a document can be signed and shared online even before the ink dries on the paper. Apart from these benefits, they allow businesses to work smartly, save money, boost productivity without using the costly, time-consuming age-old processes.

Investment in eSignature service is the best bet for organizations that want to blast past these issues and speed up their digital transformation journey.

Here are the industries that can benefit immensely from eSignature solutions.

eCommerce Industry

Is there anything familiar between eCommerce and electronic signatures? Both have closer ties with each other and are dependent on the internet for smooth business operations.

The sole credit of the eCommerce industry getting into a monstrous growth phase (USD 4.28 Trillion worldwide), breaking national boundaries, and reaching genuine customers goes to electronic signature solutions.

eSignatures have entirely changed the way eCommerce companies do business with customers.

Here is how they complement each other!

Every order on an eCommerce website is like an online business contract initiated when the buyer places an order. The open contract is closed when the buyer acknowledges the product receipt with an electronic signature.

The plan of using an eSignature application is evident here.

Its use means genuine company representatives are delivering the ordered product on behalf of the company, and there are minimal chances of the order getting duplicated and misplaced.

Another critical point is that if a business is present in other geographical locations, the company needs not seek the customer’s signature on a physical document as consent to the contract. When you esign the document using an eSignature solution, you can instantly use it as an agreement signed by both parties.

You are miles ahead of the competition in a tough eCommerce market as your customers get the impression that they are doing business with a trusted company.

This way, eSignatures provide a critical way to boost online branding, gain positive word-of-mouth marketing, and enhance Customer Experience (CX).

Banking Industry

Implementing eSignatures in the banking industry can save an astonishing 1.3 hours per transaction! As they are efficient and track documents very fast.

Banks adopt eSignature solutions in daily business operations to offer a better customer experience and digitize their processes.

Here are some ways banks can benefit from using e-signatures:

Minimize transaction time: It allows banks to process a good number of transactions within a short period

Ensures document security: If your bank uses esignature solutions, you don’t have to worry as esigned documents are stored securely in the cloud storage.

Streamline Internal process: Banks can eliminate all time-consuming steps involved in paperwork as you don’t have to print, scan and mail the documents.

Improved customer loyalty: eSignature solutions give clarity, transparency & excellent efficiency in a bank’s internal processes allowing customers to reach them for more services, thereby improving customer loyalty.

Telecommunication Industry

If an industry has truly capitalized and received immense competitive benefits from electronic signature, then the credit goes to the telecommunication industry.

When the world embraced 4G technology, they needed to acquire customers in mass numbers to justify the infrastructure costs.

But the biggest Achilles heel of this industry was manual document processing as companies received connection requests from lakhs & lakhs of applicants every day. Activating these connections in a few hours and providing them the selected services at the right time was like daydreaming.

Then the telecom industry adopted eSignature technology, which completely changed the scene. Here is how it has benefitted from electronic signatures:

Fastest Customer Acquisition: Process KYC documents in a matter of minutes instead of days.

Pleasant Customer experience: What is more pleasing than seeing your applied services getting activated before your own eyes? You apply for a sim today and enjoy voice and internet services the same day.

Contract Signups and renewals: B2B customers sign their contract online on a paperless document with real-time approvals on contract and eForms.

Tamper-proof documents: Digital signatures are tamper-proof as they use highly secured encryption technology.

Ensures compliance: Electronic signature confirms to ESIGN, eIDAS and IT signature act making it suitable for intercontinental business.

Here is a live example of Reliance Jio using electronic signatures to acquire 20 Million customers in a month.

Insurance Industry

Insurance is the second industry after telecommunication searching for new customers to add to its business. The more customers, the greater is the month-on-month revenue.

But the main challenges faced by them are reducing costs, increasing turnaround, and profitability.

To overcome these challenges and remain relevant in the market, these companies have started deploying electronic signatures as a proven solution to acquire online customers securely, build engagement and grow customer loyalty.

The benefits of implementing eSignature for the insurance industry are:

  • Sign new/existing insurance policies with speed and accuracy
  • Super convenient for clients as they can quickly sign and retain copies of their signed policies
  • Get new customers with ease leading to more significant improvement in productivity of field agents
  • Reduce chances of errors by securing your insurance document flow
  • Get a considerable return on investment (ROI) by saving paper, mailing costs, and back-office processing
  • Boosts up brand image in the market as an eco-friendly company
  • One of the most significant benefits of eSignature is that it helps reveal the identify the signer
  • It helps save your office space as you don’t need printing and scanning machines

Construction Industry

Do you know that the global construction market would grow to USD 8 Trillion by 2030? There is an incredible opportunity to be a part of this boom and climb the ladders of success.

The construction industry has tonnes of paperwork- contracts, material sourcing, paid bills, unpaid bills, builder-customer agreements, employee records, bank agreements, construction project management, and a lot more.

According to a recent study by the World Economic Forum (WEF), full-scale digitalization within ten years is capable of producing annual global cost savings of USD 0.7-1.2 Trillion (13-21%) on Engineering & Construction and USD 0.3-0.5 Trillion (10-17%) in the Operations phase.

Electronic Signatures are an essential weapon in swiftly ensuring the digital shift.

You can barely escape from paperwork! Whether the construction company is a smaller company or a larger company, contracts and agreements form part of everyday work. The most important thing is to keep all the records safe for years & years, preventing them from misuse and getting destroyed.

LunarPen eSignature applications are born to handle these situations pretty well.

Here is how LunarPen eSignature helps the construction industry:

  • Stores all documents in one place and keeps construction industry contracts completely secure
  • Eliminates the risk of construction project delays by getting required signatures from engineers, managers, and contractors
  • Process construction company documents in the most efficient way by uploading, eSigning, and emailing the documents
  • Prevents forgery of essential documents and contracts as online documents are accessible only to authorized users

Law Firms Industry

The law firm industry is worth USD 300 Billion a year. It provides expertise on various practices, including business law, criminal law, commercial law, tax law, intellectual property, and real estate.

It involves loads of paperwork hassles that are always a pain and needs due care for document creation, usage, security, and storage.

Paperless electronically signed documents simplify the process of document signing and increase document safety.

Here are the main benefits of electronic signature in the law firm industry:

Time Management: LunarPen eSignature application saves a lot of time doing manual tasks like printing, scanning, mailing, and storing the documents.

Cost savings: It considerably reduces the amount of paper needed for printing, scanning, copying, and mailing documents.

Security: It offers the highest level of protection than a paper contract due to encryption technology, allowing verification of every signer and maintaining the chain of custody.

Client conversion rate: It allows to increase the conversion rate for retaining new clients by signing with the organization immediately at the first intake.

Use from anywhere: Your clients won’t have to take work off to come in and sign documents that are essential to their matters. They go to their email and can review and sign their documents quickly.

Protects confidential documents: It helps protect personal information with secure electronic storage. Your clients will love how fast and easy it is to sign documents with eSignatures.

Legally Enforceable: Electronic signatures used for signing online documents are legally enforceable by law.

Conclusion

The growing list of companies and industrial sectors using eSignature solutions is undeniable proof of its adoption in day-to-day business operations. Take the name of any industry, and you can see the way companies are using this technology to speed up business processes, boost productivity and win consumer confidence. Electronic signatures are a dream come true for companies trying to reduce operational costs and increase market share without constraint on a company’s existing resources.

Frequently Asked Questions

What are the three benefits of a digital signature?

The three main benefits of using electronic signatures are enhanced security, lower transaction costs, and speed.

What is an eSignature example?

Examples of electronic signatures are

  • Using an ePen to create a signature on a touch screen device,
  • Using your fingers to draw your signature on smartphone or tablets
  • Using the mouse to remove your name as a signature on desktop or laptop
  • Signature at the bottom of your email
  • Typing your name as a signature
  • Scanned images of a signature

Is email an electronic signature?

The components of an electronic signature are

  • Your name
  • Name of company
  • Role in the company
  • Contact details
  • Website URL of the company
  • Your photo or a company logo

What is the symbol for electronic signature?

An S-signature is an electronic signature formed by forwarding slashes that include any non-handwritten signature (i.e., electronic or mechanical).

Posted by Lunar Pen in eSignaure Law, 0 comments
Why e-Signatures Should Be a Part of Your Digital Transformation

Why e-Signatures Should Be a Part of Your Digital Transformation

Do you know that the global spending on digital transformation will exceed 2.4 Trillion USD by 2024, making it the number one priority for a company’s IT initiatives in the world?

Companies’ efforts to transform digitally have begun, and by 2023 the digitally transformed organizations are expected to contribute to more than half of global GDP.

But important research shows that only 8% of the global companies have achieved their targeted business outcomes from their investment in digital technology. It means over 90% of companies still struggle to live up to the promise of a technological business model.

So, why is it that a large number of companies are failing to transform digitally?

Incorrect goals, lack of clear strategy, and failure to adapt to new changes are crucial reasons for its failure.

What is Digital Transformation?

Is this only about getting rid of physical paperwork and documentation?

Digital Transformation is the process of integrating digital technology into crucial business areas to optimize its speed, security, and reliability, thereby completely changing the way you do business and deliver values to the customer.

A digital transformation strategy is a key to help a company grow and provides an excellent opportunity for core business functions like marketing, human resource, and finance to move away from traditional processes, automate these areas, enabling leaders to focus on broader business opportunities.

One of the critical elements that must be part of the transformation is eSignatures.

However, in 2021, still, esignatures are not widely used in different industrial sectors despite numerous benefits like cost savings, time savings, productivity boost, and overall customer experience.

One good news for you, the current pandemic is forcing small, medium, and extensive business organizations to digitize their process and maintain an online business presence in the market.

These are the top reasons why eSignatures should be a part of your digital transformation:

  • Improves User Experience:

The pandemic led to the unexpected closure of a large number of private and public companies. Collaborations, agreements, signatures, and multiple manual processes came to a grinding halt. After a hiatus of more than a year, businesses had tons of pending paperwork, unclosed requests, and incomplete processes.

eSignature removes the excess load from your work by transforming physical processes (Print-Sign-Scan-Mail) into digital processes (Create-eSign-Email) without any dependency on manual paperwork.

Digital processes followed by eSignature do not depend on the physical availability of a person to print, sign and mail the documents. You can electronically sign online documents on secure cloud storage solutions on your own trusted device from anywhere. Organizations adopting eSignature in their daily business processes have complete peace of mind as there are no chances of pending paperwork getting stuck in the absence of office closure. It has helped improve the user experience as it allows businesses to continue operations with ease and gives a competitive edge over other players in the market.

  • Empowers people to work in new ways

Employees using eSignature applications do not need an office presence to execute crucial business processes. It keeps moving your business forward regardless of your company in any part of the world.

Here are the examples of how professionals in different industries have left old ways and adopted new working habits using eSignature solutions.

Digital Transformation in Healthcare: Doctors don’t have to depend on physical documents to hand over prescriptions and sign patient records and other documents. Increased use of electronic signatures has helped doctors prepare and share prescriptions digitally, reducing huge paper loss, theft, and tampering. Now healthcare can be speedily delivered to patients with faster document approvals, faster document sending, and faster document receiving.

Digital Transformation in Insurance: Customers can sign the necessary documents, anytime and anywhere in seconds, to get insurance policies. After customers choose to buy a policy, they can use an electronic signature to complete the process quickly. The procedure can be done with any digital device almost immediately from home or anywhere else.

Digital Transformation in Banking: With e-signatures, employees and consultants spend more time developing customer connections and less time doing business. Earlier, it took so much time printing & filling KYC forms, entering information, copying, and then scanning the image or documents back into digital format. Electronic signatures have freed bankers and employees to talk with customers and give them the needed value.

  • Complete User Control

No technology in the world gives the customer more power to check

  • Who VIEWS the document?
  • Who EDITS the document?
  • Who SIGNS the document?

There are numerous policy guidelines for the use of eSignatures.

  • The organization must provide a detailed and up-to-date statement of all requirements to the user.
  • The second rule is to inform the user that they have the right to withdraw their consent at any time.
  • The third one is that the consumer will face no legal or financial consequences.

These guidelines provide the user with more control and protect them against coercion. The use of eSignatures helps your users to know that they care about their best interests. It promotes excellent communication and interaction between the company and the customers, which is an important way of gaining feedback.

  • Saves time

By using the LunarPen platform, organizations can complete approvals and agreements in hours instead of days. It helps avoid all the time wastage and the manual work done to prepare, approve, print, and sign the documents as they can be created, edited, and stored online securely on cloud applications accessible only by authorized users.

Companies using LunarPen can track the status of signed documents putting an end to these questions:

  • Where are the documents?
  • Who has not signed the documents?
  • Why have they not signed the documents?

So, no more wastage of valuable business hours if

  • Your office is closed
  • Signer is absent due to leave
  • Printing/Scanning machines not working
  • Desktops/Laptops have crashed

Professionally, this is what organizations want – save significant time in daily business operations and serves clients quickly without any delay as time is money.

The most significant benefit of digital transformation is helping companies meet their business deadlines and serve their customers at lightning speed.

  • Improvement in Employee productivity

E-signatures boost productivity by empowering sales and simplifying operations. According to the Forrester study, signing onboarding documents online would save a typical organization 49,000 worker hours over three years and 2.5 hours per new hire.

Now an employee can work peacefully on a project without distractions as there are little chances of him leaving the current work and searching old project documents from a massive pile of paper.

Here is how eSignatures improve employee productivity:

  • Employees don’t lose time due to document collaboration issues
  • Helps in streamlining workflows to execute processes quickly
  • Uses new age storage methods to optimize productivity levels
  • Get eSignatures from the right parties on time
  • It helps achieve your aim of a paperless office
  • Improves online collaboration of employees
  • Ensures working on a project with complete focus
  • Top Security

According to a recent study, the digital signature market is expected to grow by USD 2.77 Billion between 2020-2024, at a CAGR of 27 percent during the forecast period. It means that in a few years, a large number of professionals will use esignatures for online business transactions questioning digital signature security.

Security is the biggest barrier in adopting digital signatures as businesses are increasingly worried about document forgery, data leakage, and increased risks of fraud.

Compared to traditional paper documents that are easy to forge and copy, esignatures provide a way to sign documents digitally and officially, thereby making them suitable for safer online transactions.

Not all electronic signatures are built with the same level of security. But these are what distinguishes a safer eSignature solution from the riskier ones:

Certificate Authority (CA): eSignature is associated with a third-party certificate authority (CA) to verify that a valid signature has been added to the document.

Audit Trail: Uses audit trail to store the record about the users who have viewed, edited, and accessed the document. It ensures information integrity at all times and can be used as valid legal evidence in any court of law.

User Authentication: Instantly verifies and authenticates your customer identity from any location, anytime.

Compliance: Complies with regulations like ISO 27001, HIPAA, PCI DSS (SP) Level 1, UETA & the ESIGN Act.

Conclusion

eSignature is a boon for organizations trying to provide efficiency, transparency, and security in the digital process not found in traditional signatures. eSignature offers many benefits in the digital transformation journey of an organization, like improving employee productivity, safety, enhancing customer experience, maintaining compliance, and a lot more. Companies adopting electronic signatures will find themselves one step closer to the digital future.

Click here to learn more about eSignatures and how you can quickly adopt this technology without any further delay.

Frequently Asked Questions

What is an eSignature example?

An eSignature example includes

  • A signature created using your fingers on the touch screen of a smartphone, tablet, or any digital device
  • Using a mouse to draw a signature on a laptop/desktop screen
  • You are using a keyboard to type in your signature or uploading and using the scanned image of the person’s ink signature.

Is there an app for electronic signatures?

Yes! The LunarPen eSignature app provides an easy way to upload, eSign the document, and share it with trusted sources.

Do electronic signatures hold up in court?

Lunarpen Electronic Signatures meet all strict requirements defined in the United States and Europe for safety and authentication. Your documents are legal and enforceable in a court of law.

What makes an electronic signature legal?

There must be a signer’s intent to accept and execute the agreement to qualify as a legal electronic signature. It requires the signer to take affirmative action like using a mouse or a touchscreen device to draw their signature, uploading a scanned signature, or using the keyboard to type your name as a signature.

Posted by Lunar Pen in eSignaure Law, 0 comments
How to Improve Customer Experience with Esignatures

How to Improve Customer Experience with Esignatures

Customer service is an opportunity to exceed your customer expectations – John Jantsch

Did you know that investing in customer experience initiatives has the potential to double your revenue in 36 months?

Don’t be surprised!

Another research by American Express found that 86% of customers are willing to pay more for a better customer experience (CX).

What is customer experience (CX)?

Is it about offering freebies, rewards, coupons, or heavy discounts to make a customer happy?

Not at all! – it is more about self-motivating the customer to do business transactions with the brands in speedy and convenient manner.

So, let’s redefine customer experience, which is “Creating an emotionally satisfying, positive experience with your brand or business, that leaves the customer feeling happy and satisfied that they did business with the brand.”

Why is customer experience important?

We all know companies have everything – the latest technology, lavish showrooms, the costliest hardware & products in the world to attract a customer.

But is it sufficient to build a lasting bond with the customer?

Did we forget an essential ingredient?

Yes!

Sometimes companies stop conveying human emotions connected with customer experience.

An excellent customer experience can be due to multiple reasons found helpful by a customer like helping finalize a product quickly, offering excellent competitive pricing for the products, or exceptional after-sales service to make a customer happy.

A positive customer experience:

– Increases brand loyalty

– Improves brand image

– Better customer engagement

– Boosts organic business growth

– Helps stand out in the competition

– Ensure positive word of mouth publicity

Improving customer experience with electronic signatures

eSignatures significantly improve customer experience by providing blazing fast access to customer services like esigning documents, KYC, customer approvals, Tax return filing, legal services, HR services, and many more. They are popular in the industry for their speed and simplicity. As for businesses, they reduce paperwork, cut short the time in signature and approval of the contracts, workforce hiring, limit purchases of printing devices, and storage of physical documents.

So, how do eSignatures improve customer experience?

  • No more waiting time to access services

According to a study, eSignatures reduce the average document processing time from five days to 37 minutes.

If you want to purchase a mobile sim, apply for a banking loan or sign a crucial document, you don’t need to sign a physical document and wait for weeks or more for the company’s confirmation and access to these services.

You get instant access to the needed services by signing in electronically from your own trusted device and complete the service formalities in no time. The application is instantly verified and accepted by the company. You get full access to the applied services the same business day. Apart from this, it saves you from the lengthy hassles of printing the application & identity document, self-attesting, and mailing it to the company for verification and confirmation.

  • Fully secure to use

Using a physical document for daily business activities brought in many issues like managing, storing, and keeping it safe from getting stolen or forged for misuse. There were frequent cases of the stored documents getting lost or leakage of the customer details.

In contrast, the esignature technology does document management systematically as all your documents are present in the cloud, with no chances of confidential data getting leaked or lost. You can share the document within or outside the professional network safely and securely.

Is eSigning a document safe?

An eSignature solution uses

  • Advanced Electronic Signature (AES) to ensure protection against forgery
  • 256-bit HTTPS advanced encryption is complicated for hackers to breach security

These eSignature security measures confirm that no one is spying on your connection.

Customers or businesses can fully trust esignature solutions to sign online contracts securely, initiate service or key announcements without doubting the source and authenticity of the signed document.

Ensuring a secure business environment helps reinstate customer faith in a brand, encouraging them to do more business transactions without the fear of their identity or confidential data getting stolen for misuse.

  • It helps track your documents

Physical documents are challenging to track. You have to constantly follow up with different stakeholders in the company or with new partners or clients on phone calls, emails & physical visits to know the signed documents’ status and remind other people who have still not signed it.

eSignature helps you make this task easy. Here is how you can easily track and esign the documents using LunarPen

  • Create or upload a document
  • Add signers’ email to decide who receives the document
  • Use LunarPen app to add eSignature box, date & time
  • Send the document for eSignature
  • Use the LunarPen interface to eSign your document
  • Track your document online

Now, no more wondering where the documents are, no more chasing them down, and no more delays. You can track the live status of your documents anytime.

  • Enables self-service for faster response

Customers want a solution for their problems, and they want it fast. The most important attribute of customer experience is fast response time.

How can you respond faster to a customer?

By customer self-service. Do you know that more than 40% of customers prefer self-service over human contacts?

In 2021, self-service is not a choice. It’s an absolute necessity.

It empowers your customers to explore service and find answers on their own.

How eSignature provides Self-servicing benefits to customers in 2021?

  • Faster service: You don’t have to rush to the printer & mail department for printing-scanning-mailing the physical document. One single tap on the eSignature app lets you speed past the create-sign-email cycle in minutes.
  • Less room for error: Even well-trained, experienced professionals make errors in creating and signing a document. When you use eSignature solutions, you create online documents with a lesser probability of mistakes in a shorter time.
  • Customer Satisfaction: As you use eSignature apps on your own, it gives you total command, confidence, and satisfaction in knowing, experiencing, and using the app features.
  • Simplify and modernize the sales process

A traditional purchasing process involves showing multiple product options to the customer. Based on the customer choice, a contract or agreement is worked out between the customer and the business to supply the product and complete the sales process. It is a lengthy process where many terms and conditions are negotiated & renegotiated between the parties before signing the actual agreement.

It’s time to modernize the purchase process!

What if you get a customized agreement, mutually agreed by both parties, without the stress of paperwork?

An eSignature solution helps you eSign the contractual documents instantly using digital devices. You don’t need to travel to sign a document, plus you get a super thrilled and delighted customer impressed with the speed and experience of the digital purchase process. It significantly improves the customer experience as they get the privilege to use the latest technology to execute essential business operations.

Case Study

Amway utilized the speed and efficiency of eSignatures to register new distributors for its products and increase revenue in European markets.

Challenge

The biggest challenge to expand in the European markets was to acquire new independent distributors. As a part of the process, contracts were printed, signed, and sent to prospective distributors for review and then sent back to Amway.

However, multiple contracts were returning to the company with missing information and signature. Returning a document without a signature meant a lot for the company, which meant that contractual terms were not acceptable to the distributor. In that case, the contract had to be sent back to prospective distributors for confirmation again. Apart from this, several agreements were lost in the mail, forcing the company to restart the contract process from scratch.

The manual process wasted a lot of business time, created confusion, and increased loads of manual paperwork.

Solution

Amway decided to change the distributor onboarding model from offline to online model using the esignature solution. It made the contractual signing process faster as distributors got the flexibility to sign contracts on the move using a mobile device.

The expectation from the eSignature solution was to increase the number of signed contracts with the distributors, boost company visibility, revenue, and brand image in the market.

Results

In the first year of deployment, the company signed contracts with 90,000 new distributors.

Results were mind-blowing:

– Improved registration experience for Independent Amway distributors

– Contract completion improved from weeks to seconds

– 50% reduction in administration

– Lowered distributor attrition during registration

The simple, intuitive process gives new independent Amway distributors a positive first impression and significantly reduces the number of potential distributors and prospects leaving the company.

Conclusion

eSignature is a valuable digital tool to boost customer experience and plays an undeniable part in the customer journey to transform a new customer into a qualified lead to generate a sale.

Our suggestion for businesses is to work on a dedicated customer experience strategy that will satisfy customers and turn them into advocates for your product.

At LunarPen, we help businesses build customer trust and loyalty using eSignature solutions.

SIGN UP for a FREE account to make eSignatures an integral part of your business strategy.

Frequently Asked Questions

How can digital customer experience be improved?

One can improve digital customer experience by following these steps:

  • Deep dive into the customer journey to gain insights
  • Observe and analyze customer behavior
  • Check user feedback through multiple channels
  • Gather important suggestions by the customers
  • Try to implement actionable suggestions
  • Focus on self-service to enhance customer experience
  • Take feedback from the customers after changes

How do you measure KPIs for customer experience?

It would be best if you used these KPIs to measure customer experience:

Net Promoter Score (NPS): It consists of two questions and gives only one customer experience-related number needed by the company to know the customer satisfaction level.

Customer Satisfaction (CSAT): It uses a scale from 1 to 5 to know customer satisfaction. 1 Star means the lowest, and 5 star means the highest.

Customer Effort Score (CES): It has different answers to judge customer experience starting from Very difficult, difficult, Neither, Easy, Very Easy.

Churn Rate:  It shows the number of lost customers that have stopped using your product or services.

Retention Rate: It is a measurement of how a business retains customers over a period of time.

Customer Lifetime Value (CLV): It shows the total amount of money a customer would spend on a product or service during their lifetime.

How do clients sign contracts electronically?

You need to follow these easy steps on LunarPen App to sign contracts electronically:

  • Upload the document from a device or cloud storage
  • Add email ids if you want the signature of other people
  • Add eSignature text box, date, time, and further details in the document
  • eSign the document using a smartphone, tablet, laptop, or other devices
  • Email the document to the recipient

What are the four main areas of digital transformation?

A CEO should focus on these areas of digital transformation:

  • Employee Empowerment
  • Customer Engagement
  • IT infrastructure modernization
  • Innovation of products and services

Posted by Lunar Pen in eSignaure Law, 0 comments
eSignature Laws

eSignature Laws

Do you know electronically signed documents have the same legal rights due to valid eSignature laws in comparison to the documents signed by a ball pen? Despite this, people suspect if they are permissible by law and are hesitant to use esignatures because they believe it can be forged, misinterpreted, and copied quickly. The hard reality is handwritten signatures can be easily duplicated using different methods adopted by fraudsters like simulation, tracing and freehand. In contrast, electronic signatures have many security and authentication layers to protect the esigned documents along with court-admissible transaction proof backed by the law.

The popularity of esignatures has risen since the year 2000 as world powers have put them on par with handwritten signatures by introducing laws making them legitimate.

To recognize the enforceability of e-signatures:

– India recognized esignatures under the IT Act
– USA recognized ESIGN and UETA
– EU recognized eIDAS Act

Let’s look at the esignature legality in these countries of the world

INDIA

In India, the Information Technology Act 2000 grants the same legal status to electronic and digital signatures as handwritten signatures in Indian law.

Electronic signature

Defined under Section 2(1)(ta) of the IT Act, 2000 as “Authentication of any electronic record by a subscriber using the electronic technique specified in the second schedule and includes a digital signature.”

Chapter III Electronic governance of the IT act grants legal recognition to electronic signatures and electronic governance.

Digital Signature

According to section 2(1)(p) of the Information Technology Act, 2000, a Digital signature means “authentication of any electronic record by a subscriber by means of an electronic method or procedure in accordance with the provisions of section 3”

Section 5 of the Information Technology Act, 2000 gives legal recognition to digital signatures.

Chapter V of the IT act provides these details about securing electronic records and electronic signatures.

Secure electronic record: Where any security procedure has been applied to an electronic record at a specific point of time, then such record shall be deemed to be a secure electronic record from such point of time to the time of verification.

Secure electronic signature: An electronic signature shall be deemed to be a secure electronic signature if –

  • the signature creation data at the time of affixing the signature was under the exclusive control of signatory and no other person.
  • The signature creation data was stored and affixed in such an exclusive manner as may be prescribed.

In case of digital signature, the ―signature creation data means the private key of the subscriber.

How to know if an esignature is valid in India?

Under the IT Act eSignature law, an electronic signature must meet the following requirements to be deemed accurate and lawfully valid:

  • An electronic signature must be unique for each signatory.
  • The signatory must have control over the data used to produce the electronic signature when signing.
  • Any tampering with the affixed electronic signature or the document must be detectable.
  • An audit trail records all the steps taken during the signing process
  • A certifying authority (CA) must issue the signer certificates authorized by the Controller of Certifying Authorities under the IT act

eSignature IT Act impact on business

Saved up to 1.3 hours per transaction in preparing, reviewing & negotiating documents

  • Improved document security & reduced time spent on documents from hours to minutes
  • Faster sales cycles with ready-made templates & document tracking features
  • $11 cost saved per transaction after switching to digital signature
  • Massive reduction in operational expenses by the banking sector

USA

The ESIGN Act was declared a law on 30 June 2000 and defined electronic signature as an “electronic sound, symbol or process attached to or logically associated with a contract or other record and executed or adopted by a person with the intent to sign the record”.

The most significant takeaway for contract compliance is that the signature’s electronic representation must be aligned with a contract or other document and adopted by the signatory, by any act, with the intent to be bound.

Following federal preemption, ESIGN law allows esignatures in all fifty US States where the federal law applies. It means it affects people who do online business in these states. The regulation applies both to electronic signatures and electronic records. If the federal government’s law does not apply, every State has electronic signature laws, most of which follow the UETA act.

The UETA Act centres exclusively on electronic business, commercial and government contracts. Compared to the ESIGN law adopted by the US states, the UETA act followed a state-by-state basis. Every State has the power to accept or reject the guidelines present in the act. If there is a conflict between ESIGN and UETA Acts, then the state law is abidable. Right now, forty-seven states adopted UETA, excluding New York, Washington, Illinois, Columbia, Puerto Rico and the Virgin Islands.

How to check compliance with these Acts?

  • There must be explicit consent to do business electronically
  • Electronic signatures are valid only if parties intend to sign
  • An electronic signature must be associated with the signed document
  • The electronic signature must be attributable to the person signing the document
  • An esigned document must be in the form of an electronic record that the recipient can retain at the delivery time.
  • Presence of checks and measures to know if the document has tampered

Impact of ESIGN Act on businesses

  • Revolutionized the real estate industry by eliminating clunky transactions & customer pain points
  • Armed with electronic signature on tablets, field sales executives observed a 50% reduction in the average no of meetings to acquire new customers.
  • HIPAA compliant eSignature in the healthcare industry made it easy to manage patient records

Impact on the banking industry

  • Reduced the application time from 8 days to 24-48 hours
  • Annual scanning and imaging costs decreased by $1 million
  • 90 per cent reduction in document errors
  • 80 per cent of document handling costs eliminated
  • The entire workflow reduced to just 4 steps
  • Manual back-office operations no longer required

European Union (EU)

The eIDAS act (electronic IDentification, Authentication and trust Services ), also known as Regulation (EU) No. 910/2014 is established by the European Commission to achieve a Digital single market.

It recognized three signature types as electronic signatures, Qualified electronic signatures, Advanced electronic signatures and defines

electronic signatures are “data in electronic form attached to or logically associated with other data in electronic form.”

A qualified electronic signature is an advanced electronic signature created by a suitable electronic signature creation device based on a qualified certificate for electronic signatures.

An advanced electronic signature means an electronic signature that meets the requirements set out in Article 26 of the eIDAS Act.

The purpose of this eSignature law is very clear from the first paragraph of the act “Building trust in the online environment is the key to economic and social development. Lack of trust, in particular, because of a perceived lack of legal certainty, makes consumers, businesses and public authorities hesitate to carry out transactions electronically and to adopt new services.”

The regulation seeks to enhance trust in electronic transactions by providing a common foundation for secure electronic transactions between citizens, businesses and public authorities to increase the effectiveness of private and public online services, ecommerce, online companies in the European Union.

How to check compliance with eIDAS Act?

Electronic signature: The electronic signature must be

  • Applied by the person associated with the signature
  • Involved in a manner that demonstrates the intent of the signer
  • Associated with the document or data the signer intended to sign

Advanced Electronic Signatures (AES): It must

  • Be uniquely linked to the signer
  • Identify the signer
  • Be under the sole control of the signer
  • Detect changes to the data after the application of AES

Qualified Electronic Signature: It must be

  • Created using a QES creation device
  • Supported by a qualified certificate

What does the eIDAS Act mean for businesses in the EU?

The growing use of electronic Identification schemes (eIDs) will save EU businesses worth 11 Billion Euros every year. It also benefits industries throughout the EU.

Financial Sector: One of the biggest beneficiaries of this act is the financial sector allowing eIDs and trust services to use KYC for quick onboarding of the customers. Thanks to eIDAS solutions, all processes are done online in a highly secure manner.

Retail Sector: Examples of how the online retail sector uses eID and trust services:

  • Customers buying restricted or high-value products use eID for thorough identification tests.
  • eSignatures & etimestamps save money by streamlining the processes improving document tracking.
  • Use of certified website authentication certificates to increase consumer confidence in online retail websites & prevent data phishing.

Transport Sector: Examples of how the transportation sector used eID and trust services:

  • Customers use eID and trust services to prove their identity, provide a safe log-in to the service
  • eTimestamps highlight transparency where several carriers are involved
  • Use of eSeals on essential documents to verify their origin & integrity while reducing reliance on paper-based documents

Lunarpen eSignatures comply with all eSignature laws with strict protection and authentication standards. It is legally valid for doing all online business transactions safely and securely.

SIGN UP Now to be a part of LunarPen family.

Conclusion

We have observed and understood eSignature laws in all of these countries. If we notice, the meaning and usage of electronic signature laws are altogether the same in every part of the world. These laws are designed with only one thing in mind- to make life easier for people, cut short the steps in manual processing of services, increase digital adoption, and ensure faster alignment with everyday activities supporting tremendous business growth. eSignature laws are the stepping stones to digital transformation- your gateway to a limitless world.

Frequently Asked Questions

Are electronic signatures legally enforceable?

Electronic signatures are valid in India, the US & other major countries of the world as eSignature laws are enforceable in the form of the IT Act, ESIGN Act, eIDAS Act, and a lot more. These laws are responsible for making eSignature valid in each of these countries.

What is the law on electronic signatures?

Every country has its eSignature law clarifying the definition and usage of electronic signature and digital signature. You can read the above for detailed information about different eSignature laws.

Is LunarPen eSignature legal in Europe and US?

LunarPen eSignature is fully compliant with the eIDAS regulation in Europe and the ESIGN Act in the US, making it legal to do business and online transactions in both of the countries.

Is an electronically signed document legal?

As per the different eSignature laws in the world, an eSigned document is legal if it meets the defined conditions described in each of the laws.

What constitutes a legal electronic signature?

A legal electronic signature must have evidence of the signer’s intent and consent to sign the document. This is made possible if the subscriber takes positive action such as using an ePen, Smartphone, Tablet, mouse, or a keyboard to create the eSignature and electronically sign the document.

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Top Business Challenges Solved by E Signature

Top Business Challenges Solved by E Signature

Creating, signing and organizing physical documents are a never-ending task. All of us have been through the time-consuming process of mailing and retrieving hard copies of vital documents such as applications and contracts that include your actual handwriting signature. If copying, mailing, and using multiple paper sheets with separate copies weren’t bad enough for the world and the environment, imagine what would be. In that case, the business is also extremely risky and vulnerable in terms of the authenticity of those signatures.

Since the conventional contract signing process is both time-consuming and expensive for the firms and the customers, Electronic signatures, which substitute traditional signatures on paper, are being proposed or adopted by a growing number of businesses.

An electronic signature solution has the power to change the way you conduct business and pave the way for improved profit and creativity.

Discover these top business challenges that you can solve with esignatures.

These days’ people are unwilling to wait even for a minute to get things done. They instantly want results in their hands after making payment for the business solution. Modern business practices help deliver quality products on time securely without compromising on the customer experience.

Here are the expectations from modern business practices:

–         Speed

–         Security

–         Authenticity

–         Easy usage

–         Reduces the process steps

–         Provides a competitive advantage

–         Eliminates physical presence of a person

eSignatures complement modern business practices in a big way as they are easy to integrate seamlessly into organizations’ existing business processes. You don’t need to dust off your printer cum fax machine to copy and scan the documents or send someone around the town to sign a stack of papers.

Say goodbye to all the manual delays and errors in creating, editing, authenticating, and signing the documents. By using eSignature apps, businesses can complete their contract deals quickly and safely by going online.

  • Document Traceability:

You get a call from the top company management to find out the details of a particular document. Finding that one document in a pile of thousands of documents is an arduous task and a sheer wastage of employee productivity, potential, and business hours.

What if you could find the required documents in a matter of a few seconds without involving your employee?

eSignature helps you trace and ensures transparency, reliability, and evidential validity of your paperless records deposited in secure cloud repositories without having to sweat or divert your attention away from your primary task.

Choosing the correct electronic or digital signature solution means that you and your clients can email, accept, and monitor documents by notifying them when the recipient opens and signs the documents. As a result, both parties will go ahead with the business deal’s execution in no time.

  • Enhance Security:

Using electronic signatures removes the need to chase piles of paper and ensures enhanced security for the signed documents as one of the critical elements of using esignature is the ability to prove the signing party’s identity. You cannot use an electronic signature app without verifying your identity. In the case of a contract or agreement, it also shows that both parties agree by the esigned contract.

The eSignature app lets you keep track of the identity of the person accessing & reading the document and instantly notifying whenever the verified receiver signs it. This additional oversight is essential for the protection of personal information.

Electronic signatures use a digital storage solution backed by data encryption mechanisms, user authentication, and secure repositories to hold contracts which are a better option than storing them in a filing cabinet. It prevents the stored document from getting stolen, copied, getting tampered or damaged due to mishandling.

How can businesses use electronic signature apps more securely?

Businesses can use the e-signature network to deliver documents to various clients for signing. One must assign the document a name on an electronic signature app, upload it, and add signer information. However, before sending the contract to the recipient, you must use text boxes to indicate places on the document that the client must sign with either initials or signatures.

To sign online documents, the customer can use a smartphone or other signature recording devices or apps. When your client has finished signing and clicks the Finish button, the sender gets a message stating that their client has completed the paper signing process.

  • Status of the documents

Now you don’t have to waste time in follow-ups with the customer for knowing the document clearance status. The dilemma stage to speak, call, remind, communicate, schedule or reschedule a meeting with the customer for signing the document is over.

Using an electronic signature or a digital signature, you quickly track if the client or the customer has signed the document or is still pending.

The document status monitoring feature is helpful for business users who have hectic schedules. Furthermore, you can check where each document is in the signature process at any moment.

signature proces

  • Improving speed:

The manual process of gathering signatures is a daunting task. You must run from door to door to meet the clients and seek their appointment for signing the documents. Sometimes you may even have to waste an entire day waiting for the client. It affects employee productivity in a big way as other prioritized tasks take a backseat.

On the other hand, an electronic signature solution helps you to circumvent the inefficient download-print-sign-scan-email loop. Without ever leaving the submission, you can receive the signature in seconds and the paperwork returned to the requester. Consequently, the turnaround period shortens.

  • Customer Experience

96% of customers say customer service is vital in their choice of loyalty to a brand.

Companies that excel at customer service have 1.5 times more committed staff than less customer-focused companies. Employee participation improves by 20% on average in businesses that enhance their consumer service.

90% of CEOs agree the customer has the most significant effect on their company.

How electronic signatures improve customer experience?

eSignature allows you to:

Simplify the purchasing process:

The consumer signs the contract using electronic signatures as soon as they agree on your product or service, without any delays or waiting.

Customer loyalty skyrockets when they save hefty travel costs and do not have to fly to sign a contract, mail signed documents back, or print and scan a signed document to deliver by email.

They can log in to the esignature app in seconds from any computer or portable device online and complete the contract without being physically present.

Modernize the purchasing process:

You meet customers’ digital needs by using electronic signature solutions. Customers have become accustomed to the speed, convenience & safety of digital transactions.

You won’t have to go through any more time-consuming paper procedures for electronic signatures as all formalities are completed electronically in just a few minutes. It projects a new and forward-thinking vision of a business that values its customers’ time.

Conclusion

Electronic signatures are gradually bringing much-needed changes in business processes around the world. They have made daily interactions between businesses, individuals, and public organizations much easier.

It’s no wonder that esignatures are becoming an important part of the digital transformation strategy valuing business collaboration. To achieve a competitive advantage, it is necessary to implement an effective digital transition strategy. However, without an eSignature platform, no digital transformation strategy is complete. The advantages of esignatures include increased productivity and lower costs along with enhanced user experience.

Begin your digital transformation journey by implementing eSignatures today.

Frequently Asked Questions

What are the benefits of electronic signature?

You would be glad to know about these astounding benefits of electronic signatures:

  • Enhanced security for day to day business operations
  • Very easy to use and takes less time to implement
  • Paperless workflow means no need to print-sign-scan
  • Get access to centralized document storage
  • Better workflow tracking with esignature apps
  • Increase collaboration and get projects moving
  • Lower transaction costs due to fewer chances of human errors

Is electronic signature acceptable in businesses?

Electronic signatures, like handwritten paper and pen signatures, are legally recognized, registered, and accepted by companies all over the world. The audit trail, which is linked to the electronic signature, makes it more appropriate in the event of a legal dispute and provide a detailed record of the usage of electronic signature in the documents.

Can a company sign electronically?

Yes, a company can sign a document electronically through an appointed and approved representative.

What documents cannot be signed electronically?

You cannot sign these documents electronically:

  • Wills, Deeds, and Leases
  • Papers for adoption
  • Divorce documents
  • Orders of the Court
  • Notices of termination of work (leases, utility, etc.)
  • Repossession notifications
  • Foreclosure notice
  • An eviction notice
  • Notices of product recalls

How do I verify an electronic signature?

When you get a signed document, you may want to verify the signer and the signed material by validating the signatures.

Authenticity checking confirms that the signer’s certificate and its parent certificates are available in the valuator’s trusted identities list.

Document integrity verification confirms that the signed material has not changed since it was signed. If the content of the document changes, document integrity review confirms if the content changed in a way permitted by the signer.

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How are electronic signatures better than handwritten signatures?

How are electronic signatures better than handwritten signatures?

Companies generate a lot of paperwork! Too much of it reduces your business efficiency, slows down data collection, storage, and retrieval, increases chances of errors, & has security issues. As more and more businesses automate their processes, the need to evolve from a handwritten signature to an electronic signature becomes increasingly crucial, fuelled by customers’ digital presence, demanding the availability of services from anytime, anywhere.

Handwritten signatures are swiftly getting replaced by electronic signatures worldwide due to their ease of use, quick return on investment, time saved on manual processing, speed, security, and verification by governments, banks, and regulatory authorities.

You can see the sharp surge in popularity for electronic signatures compared to handwritten signatures as per the latest trending data from Google.

electronic signatures

Source: Google Trends

So, what makes electronic signatures better than handwritten signatures? Let’s find it out.

Supports Work from Home:

From public transport struggles to global health concerns, sometimes things get in the way of getting to the office and forcing you to remain at home.

How to make sure that your contracts and agreements do not get affected if you work from home?

Now, we live in an era when companies have made work from home compulsory. We look at some of the different ways that electronic signatures help keep your company going forward, no matter where you are or what department you work in.

–         Close deals much faster as you don’t have to rush to the client physically for esigning the document

–         Helps in employee hiring by automating & accelerating the employee agreement process

–         Improves governance by centralizing the storage & management of all signed versions of the documents.

How to use electronic signatures while working from home?

You only need to install the esignature app on your device, connect with other parties to use the same. You would be able to create new documents online by uploading or using readymade templates. After that, you add email ids of signees needed for esigning the document by drawing, uploading, or typing the signature. Finally, you can send the document securely to clients, colleagues and speed up business processes without being present in offices.

Money and Time Savings:

Do you know that an organization spends 15% of its revenue creating, managing & distributing paper files for documentation?

Going paperless and adopting e signatures in a business helps you in so many ways. It restricts resources, workforce, and hardware equipment needed for procuring, printing, scanning, and mailing signed documents. The frees up time, allowing you to focus on essential tasks, saves processing time, and increases business response time, encouraging more cash flow in the industry.

Digital processes help fast-track business transformation by automating document flow, minimizes repetitive tasks to replace the time-consuming processes involved in manual capturing of data, re-entering data on machines, scanning, and storing it. It helps your team serve the customers more efficiently and create memorable experiences for them.

Electronic signatures need fewer resources like ink, paper, and postage resources. They support instant digitization of the business approval process. You don’t need to be in the office to prepare and esign a document. All necessary documents are ready online and forwarded to other signees in the online network. Electronic signatures apps empower you to access and esign a document using tablets, smart phones & laptops. So, you save a lot of time spent getting the document signed and sharing it with respective stakeholders without delay.

Enhanced Security:

A handwritten signature can’t assure you that the original document is signed by a genuine person as fraudsters quickly forge the signatures. Also, it is difficult to identify and authenticate the original signature from the fake ones.

On the contrary, electronic signatures only allow relevant invited parties to esign a document. If an online form needs esignature from other signees, the signer adds the signees’ email ids to access and esign the record on an esignature app.

Here are the details of the secure process of sending a document for esignature with the LunarPen app

  • Receive an email notification to sign a document on the esignature app
  • Go to the email and view the document shared for esigning
  • Verify the identity of the signee before esigning a document
  • Please review the document before signing it
  • Draw, write, or upload the signature
  • eSign the document securely

Electronic Record:

It is not easy to track changes in the document with a handwritten signature.

eSignatures comes with an audit trail feature to track every change in the document and capture details of when the document is opened, changed, viewed, and signed by a verified user. Audit trails maintain system activity and user activity records. It assists in detecting performance problems, flaws in applications, and security violations.

LunarPen audit trail helps you with all the tools to access, edit, send and sign the documents securely using the industry standard 256 bit HTTPS encryption. You can track all the details of the document right from

  • The time on which a user created the document
  • When the signee receives the document
  • When the signee consents to esign the document
  • When other stakeholders receive esigned document

Saves Environment

Around 40% of the world’s harvested trees produce papers. Even though the paper is recyclable, an A4 size paper requires 10 liters of water per sheet and emits methane, a greenhouse gas on rotting. Industry research firm Gartner estimates that as much as 3% of a company’s revenue is spent on paper, printing, copying, scanning, storing, transporting, and maintaining information files. Now you can realize the hidden costs of doing a handwritten signature.

Using an esignature for official work ensures:

  • No chopping down of trees for paper production
  • No paper wastage due to electronic transfer of data
  • Protects natural habitat of animals and earth’s natural biodiversity
  • Minimal usage of natural resources like water for paper production
  • Reduction in carbon footprint as esigned data is accessible from anywhere
  • Reduces electronic waste as you don’t have to buy printing machines

Indestructible Documents

Documents with handwritten signatures are prone to destruction due to mishandling, workplace accidents and can be easily lost, damaged, or forged. This forces the company and its workforce to leave the current prioritized task, trace the document, start every related business process from scratch, and waste valuable business hours.

Electronic signatures give a massive advantage to your business:

  • It is difficult to destroy documents in electronic format
  • Secure cloud servers ensure data is never misplaced
  • eSigned information is challenging to tamper and duplicate

Conclusion

There are many crucial business processes requiring signatures, such as the approval of contracts, invoices, and employee evaluation forms. Handwritten signatures slow down these processes as they are dependent on the exchange of paper and the signatory’s presence. Now you can see why electronic signatures fit better in modern business practices than handwritten signatures. They flawlessly integrate into an organization’s business processes and don’t depend on geographical boundaries and a person’s physical availability. They complement businesses in need of digital transformation, speed, safety, and security. Use the LunarPen to Fastrack and turnaround day-to-day business processes in a single click.

Frequently Asked Questions

Is an electronic signature an original signature?

An electronic signature is just like an original signature done by the signer on an electronic device rather than on paper. Pens create physical signatures, while ePen, mouse, tablet, and smartphone create electronic signatures. They have the same legality as that of a physically signed document. As many as 60 countries have passed laws to make electronic signatures fully legal and permissible by law. e-signatures are legally valid in India for over 18 years. The Information Technology Act (IT Act), passed in 2000, granted e-signatures the same legal status as handwritten signatures.

What is the difference between a digital signature and an electronic signature?

Key differences between a digital signature and an electronic signature are:

Usage: Digital signatures are used for securing a document from tampering while an electronic signature is used for verifying a document

Signature creation: You have to seek permission from a certification authority for using a digital signature While an electronic signature is done as per the intention of the signatory.

Authentication: Digital signatures use certificate based digital ids while an electronic signature verifies identity through email, OTP, phone pin etc.

What qualifies as an electronic signature?

The ESIGN act defines electronic signatures as “An electronic sound, symbol, or process, attached to or logically associated with a contract or other record and executed or adopted by a person with the intent to sign the record.” The versatility of its definition allows LunarPen to offer multiple solutions to capture an electronic signature using a smartphone, computer, or any portable device.

A qualified electronic signature (QES) includes all the secure features like

–  Ability to identify and link its signatory

– Allowing the signatory to access & control keys for creating an electronic signature
– Identify if the data is tampered after its accompanying message has been signed

What does an electronic signature looks like?

You have the sole authority to decide the look and feel of your electronic signature. Most electronic signatures look like handwritten signatures. When you create an esignature with LunarPen, you have the option to

  • Draw your esignature using mouse
  • Type the esignature with a keyboard
  • Write signature on the touch screen
  • Upload esignature into LunarPen account
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Best Practices of Electronic Signature Security

Best Practices of Electronic Signature Security

Electronic signature security is one of the top concerns of digital transactions as more and more businesses empower customers to make secure and faster transactions on the web. When you collaborate with an eSignature vendor, don’t look for an eSignature service that is ESIGN compliant or has a particular security specification. We recommend you to take a broader view of the e-signature security that also addresses:

  • Selecting appropriate authentication levels
  • Making esigned documents tamper-proof
  • Easier verification of esigned documents
  • Reliability of records independent of the vendor
  • Verifying vendor’s track record of protecting customer’s data
  • Creating trusted experience through white labeling

Such a focused multi-directional strategy protects the organization’s reputation, reinstates customer confidence, and reduces the risk of non-compliance fines in electronic signature security.

To identify the esignature security requirements against which you should evaluate solutions, you should proactively check these security best practices before finalizing and working with an esignature vendor.

Best practices for implementing Electronic Signature Security

Identification, Authentication, and Attribution

Identification: The identification process identifies first-time applicants using two types of information:

  • Personally Identifiable Information(PII) like Driving license, Aadhaar Card, Passport number
  • Nonpublic Personal Information(NPI) like credit score, income, social security number

You get Verified PII or NPI information through third-party identification services. In this case, look for an e-signature solution provider that smoothly integrates with third-party identity verification services to establish genuine esignature users’ identities.

Authentication: Once a signer’s identity is verified, organizations issue electronic credentials to the users to facilitate secure digital transactions. The organization dealing with high-value, high-risk business transactions use robust multi-factor authentication services to ensure a safe environment and protect identities, data, and digital lives.

In this case, look for an e-signature solution that easily integrates with authentication services and offers a wide range of authentication options for a smoother user experience like:

  • User authentication through user id and password
  • User authentication using secret Questions & Answer (Q&A)
  • Using e-Sign sessions for verification of email address
  • Uploading identification images for e-sign transaction

Attribution: Use the attribution process to prove the identity of the person who clicked to apply an esignature.

One of the quickest and cost-effective ways to establish attribution is to use affidavits.

Take a case where the signer has to click a button to e-sign a document on the agent’s device. Just before handing over the device’s control to the signer, the device handling agent or representative gets an affidavit text confirming that the signer has received the esignature device. The affidavit text successfully captures the transfer of control as a part of the audit trail.

Another easier way is to send a one-time passcode (OTP) via SMS text to the signer’s Smartphone for gaining access to the e-sign session.

Document and electronic signature security

The security of electronic signature and the esigned documents are equally crucial for a signed contract.

There are several points for consideration:

  • Electronic signature and the esigned documents must be secured using the digital signature security technology that creates a digital fingerprint of the signed document ( called a hash) used for verifying the integrity of the signed records. If there is an attempt to tamper with the documents, the electronic signature is visibly invalidated.
  • If signers esign a document on different days, then a comprehensive audit trail should include each signature’s date and time.
  • All electronic signatures, timestamps, and audit trails should be embedded directly within the document rather than stored separately in the cloud.
  • It must be easy to verify that there are no changes in the signed record, independent of the vendor.
  • One should avoid e signature solutions that require you to access servers to verify the signature or documents. It can pose significant problems for you if the subscription services stop or the e signature vendor goes out of business.

LunarPen uses audit trails to store and track every change in the document starting from tracking the date of signing a document to change signs in the document and retrieve data anytime for legal purposes.

esign a document

eSignature solutions

Cloud Security

eSignature solutions are available both on-premises and in the cloud.

The on-premises esignature solution runs entirely within the company’s network without the need for any external connection to keep the data on-site. On the other hand, a growing number of companies are adopting cloud storage to access documents for esignature transactions as it is speedy and cost-effective. However, it comes with several security risks like data privacy, shared servers, data leakage, and lack of data backups.

It would be best to look after esignature vendors that provide tailor-made secure storage solutions as per the organization’s need.

LunarPen understands these security risks very well and has partnered with leading cloud infrastructure service providers like Onedrive, Google Drive, and Dropbox to access documents securely and send them for e signature to respective signers and signees in a few seconds.

These cloud solutions follow world-class SSL and Perfect Forward Secrecy (PFS) encryption systems. With PFS, a user can’t reuse a private SSL key for sessions that have occurred in the past. Even if an unauthorized person gets access to the SSL key, it isn’t easy to decrypt older traffic, making cloud solutions highly safe for day-to-day business transactions.

esignature service providers

Use white labeling to safeguard signing service & customers against phishing attacks

Enhancing customer experience is the prime focus area of digital transformation. Organizations often depend on third-party solutions to support their day-to-day business process. A slight mistake ruins customer experience, leaks confidential information, and endangers the company’s finances that can tarnish its image.

So, a company must safeguard itself, its clients, and the brand name by ensuring a safe and transparent online transaction process.

The best practice is to white label the entire e-signing experience so that only your brand is visible across the transaction and not the vendor’s brand. White labeling prevents fraudsters from attacking your valuable customers through phishing emails.

Organizations should look for esignature service providers that enable the use of white labeling in esign process.

As a responsible esignature company, LunarPen recommends white labeling in every aspect of the esign process.

The best esignature solution service provider should allow you to

  • Use the company’s email servers to send direct emails and not through third-party service providers.
  • Customize the brand’s logo, theme color & visibility of header, footer, navigation bar,
  • Personalize the content, look & sound of email notifications
  • Customize dialog boxes and error messages

Case Study:  How Hackers used fake DocuSign email for phishing

Hackers used DocuSign documents to steal user credentials from all the major email providers.

The attack began when a user received an unknown email that appeared to be from DocuSign as it included its original company logo and the email content seemed like real emails sent from the company.

The email’s first line didn’t have any recipient’s name and only mentioned “Good day.”

Cofence, phishing detection, and response platform analyzed the email header. They realized that the threat source originated from an unknown domain narndeo-tech.com owned by Hetzner, a well-known web hosting service provider and data center operator in Germany.

Its researchers found an embedded hyperlink pointing towards six different options for users to enter their credentials and access DocuSign documents. Fake login pages were recreated for Ms. Outlook, Office 365, Gmail, and Apple iCloud so that users enter and reveal their original login credentials.

It is the best example of a phishing case where cybercriminals used a well-known company’s brand name to steal customer information using emails.

LunarPen strongly advises its users to be extremely cautious when using an external link on an email that asks them to share their user credentials.

If you are keen on learning more about the electronic signature security checklist, click here.

Conclusion

When businesses implement an e-signature solution, It is always advisable to take a broad view of the electronic signature security, starting from identification, authentication and ending with the solution provider’s ability to build trust and a smooth user experience.

Trusted service means stringent security measures. But at the same time, the security level of an esignature solution should not conflict with the customer experience. It is important to balance security concerns with the solution usability as over-engineering can negatively affect solution adoption and usability.

Frequently Asked Questions

What is an eSign document?

eSign document means an electronically signed document in PDF, Doc, Xls formats. Such documents are signed using an ePen, mouse, or finger movement on any smartphone, laptop & Tablet securely using an e signature app protected by 256-bit HTTPS advanced encryption.

What is the purpose of esigning a document?

Its purpose is to authenticate and quickly identify the person who has initiated the written communication and ensure a secure exchange of information between different parties. The esignature made by an individual on the document signifies knowledge, approval, acceptance, or obligation.

What are the benefits of an electronic signature?

These are the significant benefits of using electronic signature:

1) Save Costs: Save time in doing paperwork, printing, scanning, mailing, delivering, and storing the document
2) Save Time: Saves you from age-old rituals of paperwork. Going digital saves a lot of time, allowing you to focus on other essential tasks.
3) Legal Compliance: Electronic signatures are legally binded and acceptable all over the world.
4) Mobility: A significant advantage of eSignatures is helping businesses function irrespective of location & time.

How can I eSign documents for free?

Follow these simple steps to eSign a document for free:

Step 1: Click LunarPen to open a free account
Step 2: Create or upload a document using templates, Google Drive & Dropbox
Step 3: Use the signed document sharing feature
Step 5: Send the document for signature
Step 6: Use the LunarPen interface to esign your documents for free
Step 7: Receive signed documents by email

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