3 Tools Everyone in Banking, Insurance, and Government Should Be Using : Record Automation, Electronic and Digital Signatures

Mary Ellen Power, April 21, 2014

Organizations in highly-regulated sectors like banking, insurance and government face numerous compliance challenges. If you've ever been told that your work emails will be audited not just for quality and appropriateness, but for legal purposes, you know what I mean. People working in these sectors can easily feel like they are constantly under the microscope of regulators. Electronic and digital signatures can help comply to these regulations.

This kind of pressure can be difficult to deal with, but the right technological solutions can alleviate this burden and make it much easier to overcome regulatory challenges. Three solutions, in particular, really stand out.

1. Digital signatures

Not to be confused with electronic signatures, which are also critical, digital signatures provide the functional encryption and decryption needed to keep data pertaining to electronic documentation safe. Firewalls and network protection schemes are great, but hackers are often a step ahead of the security industry. Encryption is emerging as a prime solution, and sometimes a mandatory one, because it ensures that data remains safe even if it is lost or stolen. Digital signatures provide this vital level of protection for data pertaining to key transactions performed via the web and in other electronic formats, making them a prime tool for organizations in banking, insurance and government.

2. Record automation

Manually documenting all of the processes that go into online transactions, like signatures, can be an incredibly time consuming process. Establishing a process that is legally verifiable depends on being able to track and record user activity when making an agreement. Depending on manual documentation can leave organizations prone to human error and processes that slip by without being completed. Automation removes this problem.

Automation is widely considered an ideal solution for many processes in highly-regulated industries. Organizations in these sectors can alleviate the human error that comes naturally when asking skilled workers to handle tedious documentation and records management tasks. Furthermore, automating these processes allows those employees to spend more of their time on high-level tasks, something that is incredibly important in industries where budgets are getting tight, which is pretty much everywhere in the contemporary economic climate.

3. Electronic signatures

Deploying e-signatures gives organizations facing regulatory challenges a unique opportunity to cut costs, improve efficiency and ease records management burdens. Many entities in banking, insurance end up handling so many transactions that involve signatures that the paperwork is staggering. Seriously, some government offices have had to be renovated because the weight of paper records are causing the walls to buckle. Save yourself some money and business disruption by turning to e-signatures to support your various agreements, licenses and contracts.

Electronic Signature

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Why chose electronic and digital signatures?

If you have some concerns that e-signatures aren't right in such a highly-regulated industry, you may want to take a close look at contemporary solutions that have been backed up in court and support best practices that make them a completely viable option. You may soon find that all of the problems that come with paper contracts and records are actually a bigger issue than dealing with electronic records. After all, plenty of businesses have lost data because papers stored in a filing cabinet were destroyed because of flooding. Paper-based documentation isn't not a cure-all, it is a comfortable solution because it has been around for such a long time. 

Electronic signatures are establishing themselves as valid alternatives that offer many advantages over paper documentation. Organizations may not have been using them as long as paper archiving, but they've been deploying e-signatures for long enough to move past the early adopter cycle and provide clear indications of how other companies can find success in this sphere.