Why eSignature and Remote Document Collection are Critical for Banks During Coronavirus

As the coronavirus continues to rage on across the world, large swaths of the population are taking a significant economic hit. They are turning to their banks to refinance their mortgages, defer loans, and make other modifications due to sudden hardship. To add insult to injury, the coronavirus is making it nearly impossible for customers to submit needed signatures or documents at a physical branch. And that’s where eSignature solutions and remote document collection come in.

eSignature solutions for banks: Universal adoption is long overdue

Even before the coronavirus hit, banks were increasingly turning to eSignature solutions to satisfy their customers’ digital expectations and to reduce turnaround times. The electronic signature market is predicted to grow from 1.2 billion in 2018 to 5.5 billion in 2023, representing a CAGR of 37% during this period. Customers also largely prefer having the option of providing an electronic signature instead of a wet signature. This is true across all demographic groups, but particularly among Generation Z customers, who are in many ways the best barometer of key societal shifts. In a Lightico survey of Generation Z banking customers, 75% of respondents said they dislike going to a branch. Another 73% dislike the amount of physical paperwork they need to fill out in order to complete a banking task. And perhaps most dramatically of all, 82% would consider moving to a different institution if it provided superior digital solutions. It’s not just younger banking customers who yearn for eSignatures and other digital services. 77% of low- to middle-income respondents cited a better mobile experience as the number one factor that would push them to switch banks. This comes as little surprise considering that they are the most likely income bracket to have internet access through a smartphone only, and not through a laptop or desktop. But regardless of age or income, overall consumer preferences have been steadily moving in favor of fully digital customer journeys. Then, the coronavirus hit –– and digital transformation experienced an acceleration.

The coronavirus has made eSignature adoption essential

As the coronavirus drives people into their homes and away from public spaces, eSignature solutions have gone from being a consumer preference to an urgent requirement. Providing a wet signature or delivering documents to a physical bank branch is now nothing short of a health hazard. In fact, a Lightico study conducted in March 2020 found that 82% of Americans are concerned about going to their local bank branch due to the coronavirus. Another 70% report using more digital channels such as apps and websites to get things done. Many banks have started to close branches or limit working hours to safeguard their employees and customers’ wellbeing. But unless banks adopt digital solutions to fill this void, business continuity will be impeded and customers will start losing faith in the financial institutions they have entrusted to protect them. There’s another very good reason why eSignature solutions are indispensable during this crisis: urgent servicing is needed due to consumers’ growing financial instability. 56% of banking customers now say they are concerned about their ability to pay back loans in the coming months. Large numbers of people will need to defer their payments, apply for forbearance, or refinance their mortgages –– without the ability to safely visit a branch to submit documents and sign in person. Thankfully, eSignatures and remote document collection are now well-established technologies, and have the same legal weight as wet signatures and physical paperwork. Our society was already moving in the direction of fully digital banking services; the coronavirus has simply accelerated it.

The benefits of remote eSignature and document collection

Banks who choose to adopt effective eSignature software and digital document collection today will reap the benefits long after the current crisis is over. Once customers experience the effortless convenience of eSignatures, they will find traditional paperwork even more frustrating and annoying than they did before. Here are a couple of ways an eSignature solution can help banking institutions and their customers, regardless of what’s going on in the world. eSignatures are proven to:

• Save over an hour per transaction by removing the friction that comes from collecting and reviewing documents (overall, 80% reduction in turnaround time)
• Save an average of $20 per document
• Grow revenue by over 20%
• Improve security, as digital documentation cannot be forged, stolen, or lost like physical paperwork
• Reduce the need for hiring additional frontline staff thanks to more efficient and streamlined processes

eSignature solutions are easy to implement via APIs

Banks that are still on the fence about implementing an eSignature solution might be concerned about a lengthy or complex integration process. It’s natural to be reticent about taking on new projects in the midst of a crisis. Fortunately, the best eSignature solutions make this a non-issue. That’s because they use APIs to plug into legacy systems, ensuring faster ramp-up time and ROI. Banks can keep their existing CRMs, workflows, third-party applications, and agent toolbars; the eSignature fits in seamlessly and causes zero disruption to other business-critical systems.

The bottom line: eSignature solutions are the future of business

Even once the coronavirus has retreated and banking customers are free to venture outdoors, it’s highly unlikely they will want to return to traditional ways of handling transactions. After all, why should they waste their limited time on going to a bank branch when they can complete the vast majority of tasks and processes from their smartphones? The banks who succeed in quickly adopting eSignature and digital document collection technology during the coronavirus outbreak will win over customer loyalty at this critical juncture. These banks will remain competitive and relevant even with the influx of digital-first neobanks and fintechs. Customers will remember which companies made their lives easier (and which made them harder) during their moment of greatest need. And that loyalty won’t be easily swayed, even once the crisis has passed.