eSignature for banking purposes is an inevitable facility every bank is set to present to its’ customers.
Just like the Mobile and Net Banking facilities, eSignature has been designed to bring in a paradigm shift to the customer experience in many conventional processes.
Banking organizations have been especially tech-savvy and early adopters of user-friendly innovation.
Axis Bank, one of the more popular private banks in the country has been one of the first banks to adopt this inventive facility.
The Indian government’s drive to digitize our economy seems to have inspired many an organization to digitize paper-bound processes.
The customer only needs to enter his Aadhaar and phone numbers to make an eSignature for banking purposes. An OTP is then sent to his phone from the UIDAI which when entered, validates his eSignature.
eSignature For Banking – How Will The Customer Benefit?
The customer’s interest is central to any business organization. eSignature has been envisaged to bring in a paradigm shift to the banking environment in these ways:
Imagine you are on a vacation and need to sign an important banking document failing which the process gets delayed much to your dismay.
eSignature comes to your rescue in such times as you can easily upload the documents online and eSign them from the convenience of your smartphone or computer.
2. Prevents Manipulation
There have been a plethora of cases where a physical signature has been forged to gain an unlawful advantage.
Since eSignature authenticates the identity of the signer with the Aadhaar card and a One Time Password (OTP), there is a minimal or no chance for a foul play.
3. Faster Approvals
Turned around times in processing eDocuments are naturally less time consuming than their physical counterparts. The conventional way to apply for a Credit Card in a bank involves this process.
- Approaching the bank during working hours
- Filing an application form
- Submitting photograph and hard copy of various documents
- Awaiting verification and approval from the bank for several days
Making an Aadhaar based signature on your online document simplifies the above process in a significant way.
The bank ascertains your identity through the Aadhaar card which couples as an eKYC (Know Your Customer).
This feature helps the bank or any institution for that matter to verify and possibly approve your documents in a much faster time.
eSignature For Banking – How Will The Banks Benefit?
Going by the way we have adapted to the convenience of mobile and net banking the mass acceptance of eSignatures and eDocuments seem like a near future formality.
The bank or a financial institution which until previously had to put up with a massive range of documents can now ease a lot of processes by implementing eSignatures with these benefits:
1. Easy Access To Information
Digitized information is naturally easy to procure. The RBI mandates every bank to receive the identity proofs, domicile information for most transactions; When a customer makes an Aadhaar based eSignature, all such information is readily presented.
Also, the eSignature is a legally accepted approval according to the IT Act 2000.
2. Secure Transactions
The eSignature carries the same security as a net banking transaction. A 128 bit SSL (Secure Socket Layer) encryption secures the document in all ways possible.
3. Consumer Happiness
A customer who gets empowered from the convenience of a eSignature is bound to feel delighted.
eSignature For Banking – The Future
Phone banking and Internet banking are classic examples of how the customer loves convenience.
Considering the benefits of an electronic signature stretches far beyond the banking process and the fact that it is as valid as a physical signature makes it safe it envision eSignatures taking over the Banking sector in the near future.