Maintaining all the paperwork for your business can be quite chaotic, especially if you have new clients coming in every day and you have loads of documentation procedures with every contract. Recording loan agreements, investment details, appraisals, account opening information on paper can be too chaotic for credit unions as well. Paper processes and keeping a record of them all is apparently too hectic. Apart from the money which goes into all the paperwork, you really need to assign a big part of your office space for these files.

Many organizations and business models across the world, for this reason, have buckled down their engagements with paperless documentation. Digitalization has proved to be a savior for all these working giants and soon is catching up with the small-scale businesses.

The buzz around Electronic Signatures seems to have paved a long way since the feature's launch. They have dramatically eliminated the need for wet ink signatures, over the past few years. Many vendors have come up with their own software to make possible this vision of making businesses dependent on digital contracts entirely. This technology has its own perks and has altered the way of working for various credit unions.

Credit unions have a huge responsibility of member satisfaction as they function focusing primarily on nurturing their customer relationships. Members today want all the services to be accessible to them at the blink of an eye, on their mobile screens. In view of that, your credit union really needs to address these demands, as a tried and tested solution is available in the market today.

Let us look into the advantages and the possible loopholes which creep along with this technology and how it can affect your credit union.

Electronic signature software has made possible signing, approving, validating of documents and contracts, anytime, and anywhere, over any device without having to send across the physical documents over the mail. In fact, electronic signature software vendors have extended their product functionality over as iOS / Android applications, so, sharing documents over a distance securely and getting them signed comes in easy.

Here is a list of considerable PROS of using E- Signature software, that your credit union must check around:

1. Immediate

Instead of waiting along for the documents to firstly reach the recipient and then getting signed and depending on the other end for timely reverting back to the mail, is a time consuming as well as a hectic procedure to follow. To the advantage of your credit union, E- Signature software provides a quick transfer platform. Now, you can expect a faster turnaround, that is, within minutes of sending the link.

2. Saving All The Way

Paperless signing not only reduces the cost of printing and mailing documents over a distance but also saves up on the physical space required in the offices for the proper filing and arrangement of these contracts. E- Signature software have their own documents cloud where you can save all the agreements and signed applications, without having to physically document its copies.

3. Multiple Signature Flexibility

E- Signature software can handle document sending wherein thousands of signatures are required.

4. Workflow Tracking:

It becomes very challenging to track down where your document is stuck, in the process, if you are sending it through the paper. You do not have an idea, what might be hindering the flow, if it's something with the member or has the document got lost before reaching the member. The electronic signature software fixes this problem by allowing the sender as well as the executives to track down the signing process as it proceeds through the various steps, thereby ensuring transparency.

5. Security and Trust

Wet ink signatures have been in use since ages, and we all know how they can be misleading where ensuring if the signature was made by actual signer can be a difficult task. Most often, you can't really make out the signer's name through the conventional signatures. E- Signatures have solved this for us, and now your credit union can have all these information.

6. Improved Accuracy

Another major advantage is that this software can label documents fields with mandatory tags so that these fields are not missed out on while signing and hence it saves the sender of the efforts put in resending the documents for resigning.

Improved Productivity : While your credit union can save up on their time and money by skipping the possible business problems of spending enormous amounts on printing, postage, and allocating workforce for this process, which apparently gets solved by the use of electronic signatures, you can invest more of your available resources and personnel into more productive activities concerning your credit union.

7. Improved Member Relations

Members seek convenience and definitely dislike it when they have to visit the credit union branches just to sign forms. They are unsatisfied if the processing or loan sanction gets delayed. Digitalizing brings down all the waiting time and improves the member's experience with the credit union. They can sit back at their homes and still get their work done. In return, you can expect loyalty from the members, as they'll stick to a business which offers them comfort while ensuring security and quicker services.

Here is a list of CONS Credit Unions need to consider while opting for going electronically with the signatures-

1. Restricted Storage Options

Some E- Signature vendors require you to hoard your documents on their servers permanently and do not really give the authority of the documents and contracts to the credit unions. It is of concern to the credit unions where the personal information of its members is stored, which poses a situation of animosity.

2. Dependency On Vendors for Security

An inherent security risk comes along with the electronic signature utility. When the credit unions have to rely on the credibility of another service provider with their documents and personal information of the members; that becomes a major set-off.

3. Proprietary Software Use

Most electronic signature services today depend on proprietary software. This can prove to be troublesome for credit unions which do not want to be latched on to one particular vendor for its E- Signature services. This hampering of the freedom to switch between vendors can be a considerable drawback.

Solutions

Use of E- Signature for business prospects can have a lot of benefits for your credit union; if at all the above cons are taken care of. Choosing an electronic signature vendor which fits the security, as well as business-specific standards, can be the best possible trade-off solution.

Most e-signature products offer detailed information about their security standards and the technology they use. If security features concern you primarily when choosing an e-signature product, you should go for a product that offers advanced document encryption capabilities, secure access and authentication features, and non-repudiation.

The most basic type of electronic signature does not offer any kind of security against tampering, while other upgraded variants offer some basic tamper protection. There is just one signature technology that offers a high level of security—a specialized type of electronic signature called a digital signature.

For credit unions to be able to exercise storage control options, selection of electronic signature services which handover the document command to the union and allows them to digitally shred copies from the servers, can be considered.

To deal with the propriety software issue, credit unions can make a choice from the list of electronic signature vendors which adhere to the Digital Signature Standards set by the National Institute of Standards and Technology. These signatures are fastened to the documents, so the credit union can freely switch between vendors down the road.

Top Softwares for Electronic Signature Services

Here are a few Electronic signatures we feel are pioneers in their field:

1. DocuSign
2. HelloSign
3. OneSpan Sign
4. SignEasy
5. Adobe Sign
6. SignNow
7. Right Signature

Know more about these softwares in our blog Top Electronic Signature Softwares.

Conclusion

From the analysis of this write up we can safely articulate that use of Electronic Signature Products can result in a lot of savings when it comes to the union resources like time, money, efforts. Investing in the correct software for the same can be a tricky ride. Proper consideration of the standards governing your credit union is pertinent during making such decisions. Of all, security and budget should be primarily conceded. Once these cases are taken care of, digitalization is not a far point.