E signature technology is a method that provides legal, electronic versions of pen and ink signatures. Companies can utilize it to automatize signatures on documents and increase efficiency.
Authenticated digital signatures provide proof cryptographic that a document has been signed by the stated entity and hasn’t changed. They can be verified by comparing the signer’s public key to the digital certificate of the document. Certain eSignature services use passwords, codes, or PINs to confirm the identity. Others, such as DocuSign, use private and public keys to establish an authentication process.
Although e-signature technology isn’t foolproof it has significant security advantages which help businesses comply with the requirements of regulatory agencies. It is especially useful to use an eSignature system which provides context-based records of the history of documents in order to create a record that has worth and that can be legally enforced. This can include an electronic record of who verified the authenticity of the signature or trust paths between signers.
Alongside enhancing efficiency, implementing e-signature technology can also help companies reduce costs by removing paper and postage expenses. However, companies must be prepared for the typical resistance of team members to adopt new technology. Leaders should be prepared to educate and advocate for colleagues about the advantages of eSignature technology to ensure its adoption. Once employees are convinced, it’s easy to shift to a more efficient method of getting business done.