The development of fintech has completely changed how business is done around the world. With technology as the main driving tool, financial institutions are now able to provide financial services to their clients in several exciting ways. To cut the story short, fintech companies, as they are at the moment, cannot function without technology.
One such technological advancement that has allowed fintech companies the ability to provide flexible services to their customers is the electronic signature. an electronic signature in a financial institution is mostly used to authenticate digital documents. However, for a document that is signed with an electronic signature to legally valid, it must conform with the laws of the country within which it is going to be used.
What is an Electronic Signature
For financial institutions, an electronic signature is a tool that secures financial documents through the process of generation of a hash key whenever an alteration is made to a document. Each document that is signed electronically contains within it a private and a public key, which significantly improves the security of a document and ensures the authenticity of the source.
Benefits of Electronic Signatures in Fintech
Electronic signatures offer financial institutions a vast amount of opportunities for increased efficiency and cost management.
Improved Customer Relation
With the help of electronic signatures, banks can better manage the assets, and accounts of the clients. A financial institution can easily send or receive financial documents from its clients. Also, a client can remotely order a sale of an asset or withdraw funds from their account without being physically present through the use of electronically signed digital documents.
Improved Security
The use of electronic signatures to sign documents has provided financial institutions a better way of preventing fraudulent activities, which is mostly associated with hand-signed documents. The entire electronic signing process makes it extremely difficult for fraudsters to get their way.
Multiple Banking and Payment Options
With the help of the authentication process that is associated with the use of electronic signatures, many banks are now able to provide their clients with multiple online banking services and payment options. Now, a client can access their account, check their balance, and perform business transactions from the comfort of their home. Furthermore, a client can pay for goods and services through various financial options. All these advancements are possible because of the accessibility that electronic signatures offer to the fintech sector. More so, no financial institution can afford to not offer such services so as not to risk going out of business.
Increased Client Commitment
The more a financial institution perfects and expands its use of electronic signatures, the more likely they are to have committed and loyal clients. The clients of this age always demand more from their financial institutions as the pace of technology continues to move at an astronomical speed. Fintech businesses that can keep up with changing trends are more likely capable of retaining clients and attract new customers.
Tutorials:
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