Importance of Digital Signature

Published: 12 October 2020

Reading time: 3 minutes

Today’s fast-moving digital environment enables enterprises to operate more efficiently, gain competitive advantage and serve customers better than ever before. Digital signatures provide technical advantages over traditional contract-signing methods and are fully enforceable in court. Digital signatures, like handwritten signatures, are unique to each signer. When you, the server, digitally sign a document, you add a one-way encryption of the message content using your public and private key pair. Your client can still read it, but the process creates a “signature” that only the server’s public key can decrypt. The client, using the server’s public key, can then validate the sender as well as the integrity of message contents.

Compared to a handwritten signature, a digital signature much more difficult to forge as long as the keys used to create it are kept secure.

Importance of digital signature in corporate businesses

Switching to an e-signature solution from the traditional signing method empowers businesses to spend less money on paper, pen, administrative staff salaries, bulky file cabinets, cranky file servers, postal/courier services and even rent.

Legally Defensible
It is important to ensure that the authenticity of crucial business documents is never compromised. Digital signatures involve the employment of stronger security measures with biometric signatures capturing systems backed with encryption techniques to ensure the authenticity of a signer. Digital signature is valid and legally binding and defensible in court systems as compared to the traditional manual paper signatures.

Entrepreneurs are able to obtain multiple signatures from their customers among other third parties faster and efficiently. By and large, digital signatures are more time saving unlike the outdated manual way of getting documents signed.

More control of your documents
Keeping your business documents under your control is highly recommended lest they fall into the wrong hands. Unlike the traditional paper signing method, digitally signed documents are easy to track. The advantage of being able to track your documents within the shortest time possible enables you to actually send polite automatic reminders to all the recipients who have delayed to sign any particular document effectively.

Improved efficiency
The traditional method of signing documents involved so many hassles including scanning, printing, sending via email/post/couriers and delayed deliveries of signed business documents. In short, digital signatures lead to greater efficiency in both multi-transaction contracts and internal contracts.

Advanced Security
Business documents are confidential and should be kept safe at all times. The use of audit trails and digital encryption reduce the risks of your documents being altered, intercepted or even destroyed by malicious schemers.

Time-stamp and easy auditing
Other than being non-repudiation, digital signatures need time-stamping to keep track of when documents were signed. This helps in preventing false submission of electronic documents by imposters. Additionally, digital signatures help improve record-keeping practices.

Improved Reputation
Customers, partners, and vendors will enjoy doing business with you knowing that you use advanced technology to get things rolling efficiently and conveniently.

Enhanced Corporate Social Responsibility
Modern businesses are required by law to adhere to the set of global environmental impact standards. Using digital signatures shows that your business cares about the environment through awareness. Going paperless shows other companies that you are not afraid to make a positive impact on the environment.

Better Time Management
Time is of great essence in business. Unfortunately, companies who are yet to embrace digital signatures waste so much time handling, storing, signing and managing manually signed documents or contracts. The inefficiency involved in traditional paper documents signing can easily be overwhelming for businesses. Digital signatures, on the other hand, lead to better time management skills since businesses can since contracts can be prepared and signed promptly.

Better Customer Experience
Digital signatures are convenient, time-saving and efficient making it possible for businesses to serve their customers more efficiently. Providing improved personalized services makes it easy for customers to engage with your business more easily, and quickly.

Digital signatures are a safe and efficient way to get signatures on your contracts and other important documents. You can easily make them part of your business. Contact us for personal demonstration!

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