Digital transformation is playing an increasingly important role in the success of businesses, so it’s no surprise that more organizations are integrating technologies like electronic signatures into their workflows.
Over recent years, companies across various industries have embraced electronic document signing to boost efficiency, minimize errors, and deliver a seamless experience for customers, employees, and partners alike.
By using digital signature software, employees can automate repetitive tasks, freeing up time to focus on more strategic activities that require critical thinking and interpersonal skills.
What is electronic document signing?
Electronic document signing is a legal and secure method for getting documents signed without the need to print, scan, or mail them. An electronic signature platform allows organizations and their stakeholders to sign PDFs directly on their laptops, tablets, or phones with just a few clicks, streamlining the entire process.
Why should I switch to electronic document signing?
Despite the growing popularity of electronic signature tools and their ability to address common business challenges, some organizations are still hesitant to adopt them. This reluctance often stems from concerns about the legal validity and security of e-signatures.
In this article, we’ll debunk the myths surrounding electronic signatures and explain why embracing this technology is essential for driving business success in today’s digital world. Read on to discover how e-signatures can streamline your processes, enhance security, and help your business stay competitive.
Electronically signed documents are legally binding
Under the eIDAS regulation, electronic signatures carry legal effect and are admissible as evidence in legal proceedings. This means businesses can confidently use electronic signature tools to obtain signatures that are legally binding and enforceable, ensuring compliance with legal requirements across the EU.
Electronic signatures are secure
While not all electronic signatures offer the same level of security, those created using reputable e-signature software like Penneo Sign are virtually impossible to forge. Penneo Sign provides three levels of electronic signatures, each offering increasing levels of security:
Penneo Sign offers the following types of electronic signatures:
- Simple electronic signatures: These can be created by drawing, typing your name, or uploading a picture of your signature on the document. Penneo Sign ensures that the document remains unchanged after signing, making simple electronic signatures fairly secure.
- Advanced electronic signatures: These digital signatures can be created using MitID, BankID, or the Finnish Trust Network. They can verify the identity of the signer and protect the signed document from tampering. Advanced electronic signatures offer a high degree of security and are widely trusted.
- Qualified Electronic Signatures: These signatures can be created using itsme®, a secure digital identity available in 16 countries. They are legally equivalent to handwritten signatures and offer the highest level of security.
Electronic document signing saves you time and money
Electronic signature software automates many of the steps involved in the signing process, leading to greater efficiency and faster contract turnaround times. By eliminating the need for printing, scanning, and mailing, electronic document signing can also significantly reduce your business’s operational costs.
Electronic signing is easy and convenient
Electronic signature software offers flexibility to your employees, customers, and partners, allowing them to sign documents at their convenience. Whether on a phone, laptop, or tablet, they can easily review and sign documents with just a few clicks. It’s a simple and hassle-free solution for everyone involved.
Electronic signatures can be used for cross-border transactions
Electronic signatures are legally recognized across borders, especially within the EU under the eIDAS regulation. This makes them ideal for cross-border transactions, allowing businesses to sign contracts and agreements with international partners quickly and securely. By using electronic signatures, companies can overcome geographical barriers and streamline global operations.
What type of electronic signature should I use?
The type of electronic signature you should use depends on the specific legal requirements of your country. For instance, in Denmark, employment contracts can be signed using a simple electronic signature, while in Belgium, a qualified electronic signature is required by law for certain documents.
To ensure you’re using the correct type of signature, consult our Legality Guide, which outlines the signature requirements for various documents in Belgium, Denmark, Sweden, Norway, and Finland. This will help you stay compliant with national regulations and choose the right signature type for your needs.
Can any business benefit from electronic document signing?
The answer is a resounding yes. Businesses across all industries can benefit from electronic document signing in various ways. Here’s how it can help specific sectors and departments:
- Audit & Accounting: Auditors and accountants can streamline the signing process for engagement letters, annual reports, board documents, powers of attorney, and audit reports using electronic signature software.
- Property Management & Real Estate: Real estate agents and property managers can sign a wide range of documents electronically, such as rental and purchase agreements, addendums, and meeting minutes, simplifying the paperwork involved in property transactions.
- Legal Sector: Legal professionals can reduce the time spent collecting signatures for powers of attorney, engagement letters, promissory notes, and other legal documents, enhancing efficiency and client satisfaction.
- HR Departments: HR teams can automate the signing of employment contracts, severance agreements, letters of termination, and bonus agreements, speeding up administrative processes and improving employee onboarding.
- BFSI Sector: Companies in the banking, financial services, and insurance (BFSI) sector can benefit by getting loan agreements, leasing contracts, and insurance policies signed electronically, reducing turnaround times and improving operational efficiency.
How can you improve efficiency with Penneo Sign?
Penneo Sign is a cloud-based digital signature platform that helps businesses streamline their signature processes while ensuring compliance. It offers a range of features that allow you and your customers to sign and store documents securely and efficiently:
The platform offers various features that enable you and your customers to sign and store documents securely. Some of these features include:
- Automated document routing: Penneo Sign enables you to create customized signing flows based on the signer’s role. This feature ensures that the correct individuals sign the document in the appropriate order, making the process faster and more organized.
- Support for all types of e-signatures: Penneo Sign offers simple, advanced, and qualified electronic signatures, ensuring compliance with legal requirements while providing flexibility. Advanced electronic signatures can be created using MitID, BankID Sweden, BankID Norway, Mobiilivarmenne, and the Finnish BankIDs while qualified electronic signatures can be created using itsme®.
- Automated reminders: You can schedule automated reminders to keep signers on track and meet deadlines, saving time and reducing manual follow-ups.
- Customizable templates: Create and personalize email templates to add a unique touch to your communications, saving time on repetitive tasks.
- Restricted access to sensitive documents: eID validation ensures that only authorized recipients can access and sign your documents, adding an extra layer of security.
- Integrations & Open API: You can connect Penneo Sign with your existing software to reduce manual data entry and automate your workflows, improving overall efficiency.
With these features, Penneo Sign helps businesses improve efficiency, reduce errors, and save time.
Conclusion
In today’s business landscape, electronic document signing is essential for success. By adopting an electronic signature solution, your company can enhance the customer experience, save time, cut costs, and gain a competitive edge.
Implementing electronic signatures also supports your digital transformation strategy, positioning your business for future growth.
Want to learn more about how Penneo Sign can help you business succeed?