Digital signatures are broadly used today for the great benefits they provide to companies worldwide.
In this article, we will go through the main advantages of digital signatures and the reasons why they are a cost-effective investment for companies that are still relying on paper-based document processes.
1. Higher security
Digital signatures are built on PKI technology, a form of encryption through which the signature becomes part of the final document and cannot be modified or removed.
When signing digitally, the signers can identify themselves via electronic IDs. eIDs are more and more used to access public and private services online, so your customers will also perceive it as a trustworthy means of identification.
Moreover, when someone creates a digital signature, the time and IP are recorded in an audit trail embedded within the document. The only legal proof you need in court is the digitally signed PDF.
2. Legal compliance and wide acceptance
One of the great advantages of digital signatures is that they are enforceable in all EU member states. According to the EU’s eIDAS regulation, electronic signatures cannot be denied legal effect or admissibility as evidence in legal proceedings solely on the grounds that they are in electronic form or that they do not meet the requirements for qualified electronic signatures.
In the European Union, advanced and qualified signatures are considered the most secure type of e-signatures and can be used to sign various documents – from employment contracts and non-disclosure agreements to engagement letters and annual reports.
3. Time savings
Paper-based document transactions fill your day with manual tasks such as drafting, printing, scanning, and mailing. Not to mention it takes days or sometimes even weeks to get them signed and returned. And if a signature is missing, you need to spend even more time to call for answers, resend, and wait again.
Digital signing processes automate manual work and reduce the long wait to a few hours.
“With more than 3,000 contracts and agreements per month, we have calculated that we free up the equivalent of 385 hours of work with our employees. They can focus on servicing our customers and tenants instead of spending time on, for example, packing letters and stamping them.” – Thomas B. Skræddergaard, Head of IT at DEAS
4. Workflow automation
Paper processes require coordination, accuracy, and manual tracking. Especially when you need to ensure that the documents are signed in a certain order and data confidentiality is protected.
When people manage paperwork, errors can occur. Delays, mistakes, and the risk of violating policies are a natural part of the process. But they are cut out when using a digital tool that makes the workflow standardized, consistent, and error-free.
5. Happier end-users
Digital signatures also benefit your clients, partners, and stakeholders. Instead of physically visiting your branch, office, or store, they can sign from anywhere, on any device, and at their own pace.
And besides resulting in faster turnarounds, this better experience translates into higher satisfaction and customer retention.
6. Cost efficiency
By switching to digital signatures, companies can drastically cut costs associated with paper, printing, mailing, and storage. Physical document management not only demands materials but also requires space and time to archive and retrieve files. Digital signatures eliminate these expenses and the need for physical storage. Plus, with fewer manual processes involved, your company will reduce administrative costs and human errors, which further improves overall operational efficiency.
7. Attracting top talent
In today’s job market, professionals increasingly seek out companies that prioritize innovation and adopt digital-first practices. By integrating digital signatures and other cutting-edge technologies into your operations, you position your business as a forward-thinking, modern workplace. This not only appeals to tech-savvy candidates but also to those who value efficiency and streamlined processes in their daily work. Offering a more advanced, digital environment can help you attract and retain top talent who are excited about being part of a company that embraces technological advancements.
Conclusion
Incorporating digital signatures into your company’s processes provides numerous benefits—from enhanced security and legal compliance to significant cost savings and the ability to attract top talent. By automating workflows and offering a more convenient, flexible experience for users, digital signature solutions streamline operations and improve customer satisfaction. Ultimately, transitioning to a digital signature solution is a forward-thinking, cost-effective investment that supports both business growth and a strong, modern workplace culture.