Top 5 eSignature Use Cases in the Banking Industry

Rather than requiring a handwritten signature, which usually means printing a physical paper form to then either scan, fax, or mail, industries are implementing the use of eSignatures. eSignatures can be instantly completed and sent through a single digital channel like a mobile phone, desktop, or laptop. In turn, in-person meetings and slow signing processes are eliminated. The simplicity and convenience of providing and collecting eSignatures results in reduced turnaround time, greater efficiency, and improved security and compliance, while simultaneously improving customer experience. Many industries rely on eSignatures to improve their digital experiences. In fact, 81% of business users consider eSignatures to be the most important with regards to their security compliant daily uses. These businesses include banking and finance, pharmaceuticals, healthcare, and government. Specifically, the banking industry has reinvented itself to become more digital with the use of eSignatures. There are many instances where such technology has improved the ways of banking. In this blog, we will discuss the top five use cases in the banking industry.

Top 5 eSignature Use Cases in the Banking Industry

1. New Customer Onboarding

Providing a completely digital onboarding experience involves allowing customers to open accounts and complete transactions easily -- anytime, anywhere. Rather than completing an account application in-person, which requires face-to-face meetings, multiple parties who are running on different schedules, and horrendous paperwork, customers would use eForms to eSign their documents. Not only does this make the lives of the customers easier, but also those at the bank. With eSignatures, parties are more likely to sign documents on time and quickly, thus reducing turnaround time. So, agents will not have to waste time chasing customers for missing information. Instead, they can use this valuable time to assist others and foster a more desirable customer experience. Furthermore, customer onboarding requires banks to complete the Know Your Customer (KYC) and Anti-Money Laundering (AML) processes. This is to ensure prospective customers are financially reliable. And in order to get such information on these people, documentation and signatures are required. So again, eSignatures are used, even before an individual becomes an actual customer.

2. New Credit Card Application

When applying for a new credit card, there is a lot of signing and paperwork involved. However, when applying online, all these processes become digitized. Retail and commercial customers can provide documents, complete forms, and provide signatures in one call to limit rework and speed up the process. As a result, there are shorter application cycles and reduced touchpoints to decrease the risk of losing prospects. Additionally, an Experian survey polled over 1,000 ages 18+, all with different credit scores and a different number of credit cards, to learn more about credit card experiences. More people than you’d think are unsatisfied with their current credit cards and are looking for a new one. Over half of the respondents were not completely happy with their credit cards, and 62% agreed there is most likely a better option out there for them. In fact, one in three respondents mentioned they were planning on applying for a new credit card. With so many people wanting to apply for a new credit card, it only makes sense to have an easy, simple process to do so. So, eSignatures come into play for banks yet again.

3. Loan Application

When it comes to loans, there are numerous different kinds -- auto loans, home loans, student loans, personal loans, and anything in between. No matter what kind, all loans require multiple signatures. In 2011, US Bank offered eSignature consumer loans in all 3,000 of its branches. The customer is simply authenticated for security purposes, then signs his or her name electronically. The bank’s goal in doing this was to create a better customer experience, improve efficiency, and save time and money. By successfully making sure the whole process could be completed electronically, loan applications became less tedious in the eyes of both the customers and the bank.

4. Adding and Removing a Joint Account Holder

A joint account is a bank account shared between two or more people, typically relatives, couples, or business partners who trust each other with their finances. It usually allows anyone named on the account to access the funds. Each specific joint account can be established with its own implications for how money can be accessed and what to do if a holder needs to be added or removed. Since there are multiple parties involved in a joint account, multiple signatures are required. Personal details of all account holders, such as proof of address and identity, are all necessary to open this type of account. And even once the account is opened, you may want to add someone, such as in the case of marriage. Or, in the case of a divorce or death, you may need to remove someone from the account. The requirement of multiple signatures from multiple people tends to lengthen any banking transaction. But with a multi-party eSignature solution, many people can sign instantly from any location. In 2019, Lightico partnered with Happy State Bank in Texas to help them improve efficiencies and accelerate processes for both their customers and themselves. Since the partnership, the bank had been utilizing Lightico’s mobile-first solution to speed up the collection of multi-party eSignatures and supporting documents on account openings. Happy State Bank experienced a 90% completion rate on account openings, a reduced time to process loans and loan deferral requests, and increased their customer interaction via digital channels 4x.

5. Mortgage Application

Although mortgages can be a complex topic, banks are working to implement new technologies so the application process gets easier. eForms, eSignatures, and eDisclosures are becoming more widely available within the mortgage transaction. Since mortgage discloses are so time-sensitive, it gives banks an even stronger reason to digitize the process. For example, Wells Fargo has already introduced a way to keep track of your mortgage application remotely. Wells Fargo’s LoanTracker is a series of digital features that gives a clear and convenient way to track your home loan progress from the application stage all the way to the end. You can also receive disclosures and upload required documents for loan approval electronically from any smartphone, computer, or tablet.

eSignatures: The Bottom Line

There are an endless number of use cases for an eSignature solution, whether it be in the banking industry, or any other industry. Almost all customer-centric businesses face quicker turnaround times, efficiency, sales, and customer satisfaction as they transform from heavy paperwork transactions to eSignatures. Learn more about Lightico’s eSignature, eForm, digital document collection, and electronic payments at Lightico.com.