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Published August 08th, 2016 by

Paperless Signing Made Easy With Digital Signature Tools

Paperless Signing Made Easy With Digital Signature Tools

Going paperless isn’t just about emptying your file cabinets or throwing away your printer in the bin. It is embracing a more time, space, and cost efficient system of document management. Going paperless deals with opening up our minds to something that will revolutionize how we approach the term “efficiency” in the workplace. It is more than freeing up your desk with clutter, but your mind as well. Many times, office workers get their down-times from sorting and looking for files from rows of storage cabinets, and also, from printing and bringing tons of paper works for signing on their bosses’ desks.

For decades, business analysts have actually seen that the world should be gearing towards a paperless office. Yet there are skeptics who find insist a familiar method is more convenient to use. Some of the reasons why the use of paper is most common in businesses are the following:

  1. Paperwork is needed for government compliance.
  2. Paper documentation is needed as a legal necessity.
  3. Paper documents imply permanence and formality.
  4. Paper documents are tangible; therefore can be trusted better.
  5. Paper is cheap (but with long term cost consequences).

But actually, going paperless has more long term benefits than paper. Some of it deals with something that is actually logical in the first place.

  1. There is reduced clutter in the office desks.
  2. Documents are accessed faster.
  3. Digital document back up and storage using the cloud is an excellent disaster recovery measure.
  4. Cost efficient in many ways like not having to buy additional hardware, paper, ink and file cabinets.
  5. It is also time efficient and convenient, which doesn’t require bringing tons of paperwork while business traveling or in meeting with clients outside the office.
  6. Through paperless documents, your business system becomes scalable without the cost and hassle of upgrading or downgrading hardwares.
  7. A streamlined workflow is better achieved using electronic documents because of a faster way of exchanging, sending, receiving and storing it.
  8. It is environmentally friendly.

In 2012, a research said that at that time, about 35% of its company respondents have already adopted and reaping the benefits of paperless systems in their businesses. With the flourishing of the digital technology in almost all aspects of human lives, there is no doubt that the time has also come for paperless systems to spread even more.

What Is a Digital Signature?

In a paperless business model, we are dealing with electronic documentation and its associated processes. This makes integration of methods and systems easier, which also cuts a significant amount of time from consolidation and analysis of reports. With plenty of benefits that positively affect the way businesses operates, the use of a public and virtual network as its gateway and storage venue also increases its risk for unauthorized access and illegal document tampering. For a better understanding, it is best that we differentiate paper, electronic and digital signatures.

In general, paper, electronic and digital signatures altogether are used in order to authenticate a document or a transaction. They also imply the identity of its creator, and all are recognized as a valid proof or evidence should legal circumstances require its presence in the court. However, each has its own distinct features, depending on the purpose it is used.

A paper signature, or a wet signature, is created when a person puts his or her own unique mark on the document. A traditional way of writing a signature is to make a cursive or stylized version of the actual name of its creator. The term “wet” is used because the method utilizes ink or wax (when used as a seal) to write it, and then waiting it to “dry”. Handwritten signatures are also legally binding, and is most commonly used among the three.

On the other hand, electronic signatures come in many forms. The most common is a captured image of the real handwritten signature that is just converted into a digital form and embedded in the document electronically. It signifies compliance or agreement to what was written or indicated in the electronic document in question. Other forms of electronic signatures are the following:

  1. A name, with basic details like work position and contact number below it, which is usually found at the end of emails.
  2. An image of a handwritten signature affixed to an electronic document, that was made to look like it was signed personally.
  3. A PIN, or a personal identification number used in debit or ATM cards, input to authorize a payment or a cash withdrawal.
  4. Ticking an option to agree on the terms and conditions check box.
  5. The original handwritten signature that is personally signed on a handwriting recognition capable device and its software, that is automatically captured, verified and embedded in the electronic document.

Digital signatures are more complex in nature than both paper and electronic signatures. Instead of a visible mark or a cursive handwriting, a digital signature is created using cryptography – which results in a unique mathematical string of codes, which cannot be deciphered by ordinary logic, and without the use of the corresponding keys.

One of the key advantages in using digital signatures is its specialized and high level of protection and verification process of securing electronic documents from unauthorized access and alterations. It also makes use of a third party certification that issues a separate security protocol called a digital certificate. Another is since it is digital, and an enforceable way of authentication, it can be integrated with automated systems and still be effective.

How Does a Digital Signature Tool Work?

A digital signature software is an online based tool used to create digital signatures and embed it into an electronic document. Digital signature tools often integrate with electronic management systems (EMS), for an automated workflow in securing business documents.

A digital signature software should first apply for a digital certificate to a third party entity called Certificate Authority (CA). A digital certificate acts like an ID issuing agency, which validates the use of digital signatures by embedding information and details about the identity of its creator, including the corresponding public key that will be used to decrypt the digital signature. This can help the recipient in verifying the document from a separate entity, which is an authority and governing body that implements strict compliance standards for the use of electronic documents and signatures.

A digital signing tool adheres to the top of its level data encryption technologies, which incorporates a secured and dynamic seal to electronic documents that makes it resistant to forgery or document tampering. A private key, which should be kept confidential at all times, enables the encryption of the document prior to sending online to the intended recipient. Its corresponding unlocking key is called a public key, which can be shared with many and is primarily used in decrypting the document back to its original form.

A specialized step involved in digital signature softwares, called hashing, is a term that is often used interchangeably with encryption. The simplest difference between the two is that when encrypting a document means it can be reverted back to its original form using the right key. On the other hand, hashing the contents of a document would be impossible to bring it back to its original state. The main use of hashing is to store critical information in its current state like passwords. The system, instead of storing the actual password, will then store the its hashed version. This way, when a hacker is able to retrieve the hashed password, it will be futile in decrypting or using it. Hashing is like a security check – wherein when the user inputs the password upon prompt, the system hashes it and compares the hashed password with what was stored. If they match, then the access attempt will be successful.

Who Uses a Digital Signature Tool?

Digital signature software offer security solutions to many organizations and industries, including the following:

  1. Financial services

Digital signature tools are used with tracking and serving evidences of delivery of financial transactions and services. It also significantly improves loan processes by automating the system used for documentation verification.

  1. Insurance

A digital signing tool is beneficial to insurance businesses in shortening their processing and approval time for application and claims. This includes an efficient and fast digital signing option for its customers on the web, in order to accommodate more volumes of customers at the same time.

  1. Government

Government agencies usually process a significant number of electronic documents and paper works pertaining to contracts, progress reports for government projects, correspondences, supplier and service provider transactions. All of these require multiple signatories before execution, which are time consuming in the process. Digital signature software eliminates the use of paper transactions, and upon migration to paperless systems, can also make the processes automated. Concerned signatories can also effectively sign multiple copies and documents through it. A digital signature software can also encourage collaborative document signing and management, which makes it more effective in gaining better control and transparency in business transactions.

  1. Education

Digital signatures are particularly useful in automating authorization on student transcript of records, scholarship grants, and enrollment transactions.

  1. Legal services

A digital signature enforcement tool can help legal firms in creating an online signing platform where users can sign important contracts and legal agreements without the hassle of visiting the legal office, which is often multiple times and with long hours of waiting. Sending contracts electronically can make more effective cross checking for the client, which he can do at a time that is most convenient for him to do it better. Even the signing  and returning the contract back to law firm can be done in the same digital signature platform that makes the process fast and easy to execute.

How to Choose the Best Digital Signature Tool Provider

Choosing from among the sea of, or even from the top digital signature tools available today can be downright intimidating and exhaustive. One should carefully evaluate his business needs and priorities, as well as its budget and implementation preferences. Choosing the best digital signature tool provider should be given sufficient time and deliberation, in order to make smarter decisions that should positively impact your business.

Client feedback can be seen to be one of the strongest points to consider in choosing the right tool and provider for you. Check out these digital signature tool reviews here.

Jeev Trika

Jeev is an executive leader with successful experience building research portals which recommend the best products and services in various highly competitive verticals.

Our rankings are completely independent, transparent, and community driven; they are based on user reviews and client sentiment. These digital signature software companies had to earn their way up and didn't just pay their way up.

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