Ciao!
November is coming to an end 🍂, but our desire to explore and inform about the amazing world of legal tech does not end. With this issue, we would like to recap the main themes around e-signatures. If you need any help, please do not hesitate to reach out.
Thanks,
Giulio Messori (CEO, Sweet Legal Tech)
E-signature 🖊 : why business need to start using it.
Electronic signatures have existed for over two decades, and somehow they never reached such importance as after the covid-19 pandemic outbreak. An e-signature is the digital equivalent of a handwritten signature, also called a wet sign. However, it provides more intrinsic safety, such as validating the authenticity and integrity of a message, software, or virtual document.
The first time we had an electronic signature was in 1977, with the invention of a cryptosystem called the RSA algorithm. This algorithm was invented by Professor Ronald Rives, Adi Shamir, an Israeli cryptographer, and Leonard Adleman, an American Computer scientist, in order to transmit data securely. This algorithm can be considered the first basis for the invention of electronic signatures, especially considering that right after the RSA, many companies started developing solutions based on the algorithm to create more accessible digital signatures. Since digital signatures have existed for so long, why did they gained more and more importance in the past couple of years?
We will try to answer this question with a list of improvements that e-sings can bring to your company.
📈 More efficiency, 📉 less costs
One of the main reasons for adopting a digital signature involves the safety of the process and the consequent boost of efficiency that it will bring to the company. Signing a digital document is almost as quick as signing it on paper. Still, time is saved, especially in handling the record: contracts can be managed faster when the documents no longer need to be scanned or printed and sent as paper mail. The document can be saved in a location where the right persons can access it if necessary. It only takes a moment to send an electronic document to the recipient in a much safer way. For example, once physically couriered, the document is entirely out of the sender's control. Important information can be lost, leaked, and, in a minor dramatic case, delay the entire process. With digital signature, you can empower your teams to prepare quickly and approve agreements so they can focus on the big picture. The mail e-signature software will integrate with your apps of choice, including Salesforce, Microsoft, Google, Zoom, and more. So, there will be no need to reinvent the entire work process.
🌍 “Whenever, wherever”.
As Shakira would say. Nowadays, in the contemporary business world, it is no longer necessary to jump on a plane and fly to the other side of the world just to sign a contract. Neither is it necessary to send an important document via email and have to wait at your desk for days. An electronic signature is also a fast and efficient method when papers must be shared across borders, for example, in connection with contracts or competitive tendering processes. The EU's eIDAS Regulation guides the European Union's electronic signature. A qualified electronic signature (QES) is valid in the European Union. It is legally binding and indisputable without separate evidence.
✨ As safe as it comes.
Utilizing an electronic signature provides a significantly higher level of security. They offer a more secure transaction and the possibility to have crucial information such as date, timestamp, identity authentication technique used, and IP address, proving all the details you might need of the signature.
"E-signatures provide a secure digital workflow that helps ensure a clear and predictable process with controlled access rights throughout the entire workflow."
(Loufman, 2022)
😀 Happier customers, happier life...
Consumers, partners, employees, and agents. All of them wish and expect a convenient, fast agreement experience. Allow them to sign practically, in less time, and anywhere they need any agreement on almost any device.
🌞 ...and a happier planet!
Anyone that ever signed a contract, whether a contract of employment or a mortgage, is familiar with this situation: infinite sheets of paper printed in multiple copies, a tired hand, and numerous appointments to sign each page. Besides being an exhausting situation for the person involved, it is also exhausting for the planet. So much paper is wasted on printing documents that will populate the already overflowing shelves of your office. Digital signatures are a simple, effective way to become more eco-friendly and "paperless", meaning reducing the amount of paper utilized in the company and replacing the traditional processes that require significant investments in paper. A document that has been electronically signed is also handled electronically. There is no need to print the copy; therefore, there is no need to think about physical storage. The document can be kept safely for a long time using various electronic workplace options. Cutting back on paper usage is a significant environmentally friendly move.
Beyond their value in remote working environments, electronic signatures are a much faster, more secure, and sustainable alternative to wet signatures. And yet, there are still multiple realities not utilizing them and not even knowing why they should! 😦
Hopefully, this article helped clarify the topic and helped you overcome all the fears and doubts that were stopping you from adopting a digital e-signature!
If you have any additional doubt, don't hesitate to contact us! 🚀
Sweet Legal Tech
Resources:
Evolution of Digital Signature | DrySign. (n.d.). https://drysign.exelatech.com/blog/evolution-digital-signature
Infographic: The History of Digital Signature Technology. (n.d.). https://www.signix.com/blog/bid/108804/infographic-the-history-of-digital-signature-technology
Louftman, D. (2022, May). Why Businesses Should Trust e-Signature. https://heinonline.org/HOL/LandingPage?handle=hein.journals/solicjo198&div=166&id=&page=
Rut, M. (2022, March 10). Create a Sustainable Business with E‑Signatures. OneSpan. https://www.onespan.com/blog/create-sustainable-business-e-signatures
Santosa, A., & Prasetyo, Y. (n.d.). How the COVID-19 Pandemic Affected the Sustainable Adoption of Digital Signature: An Integrated Factors Analysis Model.
Yousefi, Y. (2022, July 13). 8 Reasons Your Organization Needs E-Signature Now. DocuSign. https://www.docusign.com/blog/8-reasons-your-organization-needs-e-signature-now