BHD Leon implements electronic signature

In an increasingly digital world where the financial sector is reshaping its customer experience systems, security is a core issue. That reality has prompted many banks across LATAM to adopt electronic signatures as a means of both expediting customer engagements while mitigating risk.

One of these banks is BHD León, a pioneer in the local financial sector in the Dominican Republic with more than 100 service points and 503 ATMs; a bank focused on transforming its remote banking services through Internet Banking. In this interview we spoke with Angela Nieto, Senior Vice President of Technology at the bank, about the implementation of electronic signature process and the benefits realized. We also spoke with Camilo Sierra, Regional Sales Manager, an expert in the implementation of electronic signatures to get his perspective.

What challenges led BHD León to implement the advanced electronic signature?

BHD León: As an institution we have always believed that our collaborators and clients are of primary importance. With the current pandemic, we had to take measures to guarantee the safety and health of all (such as distancing) while maintaining our delivery and access to service standards. That commitment prompted our decision to invest in adopting electronic signature technology.

In what processes or services within the organization was the electronic signature implemented?

BHD León: We integrated the signature application into many processes, including managing purchases and payments to suppliers, internal requests and approvals, loan restructuring, and others.

What were your goals?

BHD León: We had three critical outcomes:

• Reducing the impact of the pandemic and the fear of our clients to approach our offices.
• Reducing response times and security when sending approval documents.
• Eliminating the transfer to traditional branches to sign documentation.

How did the Coronavirus pandemic influence this process and decision-making?

BHD León: Without a doubt, it accelerated the development and opening of internal and regulatory bodies to allow this capacity to be adopted and remain as an agile and safe process to provide services to our clients.

What have been the strategic results after implementing this technology?

BHD León: It’s a recent change but we are already seeing positive results, prompting us to continue expanding and deepening the use of this type of solution. Both our clients and our collaborators have told us about their satisfaction and we are committed to continuing to provide the superior banking experience that characterizes us.

How did OneSpan approach this challenge and what solution was adopted?

OneSpan: I have known the bank for a few years and one of my priorities was to support their digital transformation and align our solutions with their security and customer experience goals. Prior to the pandemic, the bank was looking for a solution that would allow business continuity for internal processes and extend it to external processes. BDH León needed a remote tool that would allow their customers and employees to sign documents digitally, effectively, efficiently and in alignment with the local regulatory framework. That specification aligned perfectly with our OneSpan Sign product.

How did the process develop from a chronological point of view?

OneSpan: First, the solution was presented and then we determined where OneSpan Sign would fit according to the bank’s requirements. We encountered a barrier at the beginning: our solution was not approved within the local regulatory framework.  Local approval was necessary to give the bank peace of mind and certainty that the proposed solution was aligned and supported by the law. 

Once we obtained local regulatory approval, the next step was to identify internal and external use cases where the bank needed to have this solution in order to then plan how the implementation and the production were to be carried out. The decision was accelerated when the country entered a health emergency, making the project a priority for the bank.
With the support from the main shareholders and decision-makers, complying with the bank’s expectations, in less than one month, Banco BHD León became the first financial institution in the Dominican Republic to use an advanced electronic signature technology for both internal and external processes.

What conditions were found for the development of the project from the regulatory point of view?

OneSpan: From the regulatory point of view it was a challenge since at the beginning we found several opinions about the use and legality of it for financial institutions, which led us to approach INDOTEL, a government entity that as part of its responsibility endorses, enables and promotes the use of electronic signatures in the country.

INDOTEL gave us the critical criteria to achieve certification with them and have the necessary support to be able to promote our solution for different use cases and for different industries. Today we can proudly say that we are endorsed and enabled by the regulatory framework in the DR to promote the use of OneSpan Sign.

What levels of security does this technology include?

OneSpan: Our solution has different certifications and complies with the different regulations worldwide. Just to mention a few, OneSpan Sign has SOC 2 Type II security, FEDRAMP, HIPPA, GDPR, ISO, among others… that give our clients peace of mind about the management of their information, its confidentiality, and the necessary support from OneSpan.

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This blog and interview was originally published on FinTechAmericas.co on August 21, 2020.