eSignatures Streamline Document Workflows

It hardly seems that long ago when the document-signing process involved a manual workflow in which all the necessary participants gathered around a desk, each with pen in hand, for the wet-ink signature event. That process of finalizing documents and arranging for multiple stakeholders to sign them was arduous and prone to several challenges, such as scheduling conflicts, illegible or inconsistent signatures, errors, or last-minute changes to documents. It’s safe to say that the entire process was:

• Slow. Signing processes often required that documents be hand-delivered to signers who were in different geographical areas, a process that could take several days.

• Error-prone. Missing signatures, dates, or pages were common, resulting in the need to reprint and re-sign documents.

• Verification-dependent. Identity checks relied on in-person witnesses and a notary, depending on the type of document or for signers who were in different locations.

• At risk of insufficient validation. No built-in validation to ensure every field was completed correctly.

• At risk of noncompliance. Adherence to regulatory requirements was more difficult to verify without reviewing an audit trail.

• Storage-heavy. Documents were manually stored and managed, which required substantial physical space.

Aside from hurdles in the signing processes, there are other challenges with tracking and ensuring the validity of documents. For example, companies outsource business functions that involve expediting documents, such as purchase orders, expenditures, and project specifications. All of these documents need to be reviewed and approved by relevant stakeholders. However, there is no assurance that the documents haven’t been changed at some point. Also, the more documents get routed, the more difficult it is to trace their ownership and accountability.

Electronic signature (eSignature) functionality has alleviated the cumbersome manual signing tasks along with other common issues surrounding documents and records. The Electronic Signatures in Global and National Commerce Act (E-Sign Act), enabled in June 2000, permits parties to use electronic records in cases involving documents that require signatures, so long as all signatories consent to the use of electronic documents. eSignatures streamline document signing processes and help keep documents and signatures authenticated. 

eSignatures are a secure, automated method for signing digital documents, using different formats, including typed names, drawn signatures, or click-to-sign buttons. eSignature technology enables businesses to streamline their digital workflows and speed up business operation processes, from hiring and onboarding to supply chain tasks, such as drafting and approving standard operating procedures (SOPs), resource allocation planning documents, and purchase orders. 

Key features of eSignature technology include recipient authentication, tamper-proof files, and audit trails. Organizations can then store documents in a secure online archive, easily accessible to all parties for a predetermined length of time set up by the agency or business unit that oversees the specific document. 

Businesses in various industries are recognizing the value of eSignature platforms due to their enhanced security, traceability, ease of use, and validation. A Fortune Business Insights research report revealed these statistics on eSignatures: 

• 70%-80% of U.S. organizations have adopted eSignature processes as part of their digital transformation.

• 78% of law firms across the U.S. have adopted eSignature software as part of their remote working tech stack.

• 90% of financial firm customers choose to e-sign documents rather than using a traditional paper-based signature.

How eSignatures Are Useful

The convenience, speed, and efficiency of eSignatures have made them an essential part of an organization’s digital transformation and business operations. Some of the advantages of eSignature include:

• Authentication. Companies can quickly obtain legally valid signatures, accompanied by critical information through timestamps, including when and where documents were signed.

• Audit trails. A comprehensive audit trail can help prove the validity of the document and the authenticity of the signatures on it. It can also help assure that documents have not been altered after their finalization and signatures. 

• Convenience. Signers can complete document signature processes from anywhere on any device, removing geographic barriers and the need to schedule in-person meetings across time zones. 

• Non-repudiation. eSignatures provide evidence that document signers participated in a transaction, which protects all stakeholders against false denials of participation.

Types of eSignatures

The European Union (EU) electronic identification and trust services (eIDAS) categorized eSignatures into three types, where each type carries a different level of security depending on the type of document and signature requirements. 

• Simple electronic signature (SES). Offers a basic level of security. The SES level applies mostly to signatures on low-risk documents, such as a scanned handwritten signature or a typed name in an email.

• Advanced electronic signature (AES). Links to a specific signer, can identify the person, and is capable of detecting any subsequent changes to the data. This level is suitable for most business transactions. 

• Qualified electronic signature (QES). The highest level of security, based on a qualified certificate issued by a qualified trust service provider and created using a qualified signature creation device. It has the same validity as a handwritten signature.

How eSignatures Differ From Digital Signatures

The terms electronic signature and digital signature are commonly used interchangeably. While the two signature technologies overlap, they are different. An eSignature is a method for electronically signing a document, such as a signer typing a name into a PDF or using a touch screen to sign on a tablet. The most basic eSignature can include a photocopy of a handwritten signature, a typed or drawn signature, or even clicking an “I accept” button. Common documents that use eSignatures include contracts, agreements, and some legal documents.

A digital signature uses a form of encryption. Digital signatures rely on certificate-based technology from a third-party called a certificate authority. Digital signature users are assigned a private key that converts the document into a code called a hash value, which contains information about the document and when it was digitally signed.

Typically, a digital signature ranks as a more secure form of eSignature that uses encryption methods to ensure the following:

• Actual proof that the identity of the signer is legitimate.

• The document has not been altered or tampered with.

• That the signature can be attributed to the issuer and signer.

A digital signature is recommended when documents have a higher security risk. This method ensures that if a document is changed, the signature is invalidated. This adds a layer of security beyond what an electronic signature uses, enabling digitally signed documents to be legally binding.

Security has been top of mind from the onset of eSignature technology. While eSignatures are faster and easier, users of the eSignature tools justifiably question how secure the process and documents are. Some of the potential security risks for eSignatures include:

• Identity or credential misuse. Someone signs with stolen, shared, or compromised credentials.

• Social engineering. The signer is confused and tricked into signing the wrong document.

• Weak or incomplete validation. The signature is properly placed, but certificates, timestamps, revocation status, or trust chains are not checked correctly.

• Loss of context. Information about who signed and under which process disappears.

While these are legitimate concerns, eSignature technology can be highly secure with the right risk mitigation strategies. Documents that contain eSignatures are accompanied by document security functionality, which has the ability to verify the authenticity of a document. For example, document stakeholders can employ a feature called evidence-based authentication to prove the authenticity of an eSignature by routing the document through an account that is controlled by the signer.

Other security measure include:

• Locking a document once the signing process has begun. This means that the document cannot be altered in any way. However, if the document needs to be changed, all existing signatures on it become invalidated, and the revised document must be signed again.

• Functionality that secures documents after they have been routed through all signers, which prevents it from being changed.

eSignature Audit Trails

Audit trails are automatically logged records of activities completed on documents, transactions, and workflows. Audit trails contain a variety of readily accessible information, including:

• User identity

• User actions

• Timestamps

• Authentications on documents

• Document and workflow changes

• Evidence of eSignature workflow completion

• Length of time documents are viewed

Audit trails are particularly important for eSignature tasks as they track and record the transactions, workflows, and metadata of all e-signing activity to ensure its authenticity. They also make it easier to review user interactions with documents. For companies that need to comply with any type of legal or regulatory guidelines, audit trails are vital because they maintain comprehensive and consistent records that often need to be accessed without advanced notice.

In the course of transitioning to modernized technologies, more organizations are leveraging artificial intelligence (AI) for a variety of business functions, such as document analysis and verification, finding obstacles in document workflows, and most of all, speeding up document signing tasks. Forms and applications that used to take several days to review and process can now be completed much faster with real-time identity verification and automated workflows. This is particularly important where speed and accuracy directly impacts business performance and customer satisfaction. AI is transforming operations involving eSignatures by: 

• Transitioning the eSignature process from a signing event to an intelligent, risk-aware, and fully automated business process. 

• Generating detailed audit trails of the signing process.

• Employing AI algorithms to detect and prevent fraudulent signatures.

• Incorporating functionality that automatically enforces essential processes embedded into workflows, such as validating signer eligibility, analyzing documents for sensitive content, capturing timestamps, or managing document expiration.

Now that more people are working from remote offices and locations, it’s more challenging and time-consuming for organizations to set up and efficiently expedite operational workflows, such as routing documents to gather stakeholder signatures within a short timeframe. The ultimate goal of a workflow is to efficiently complete the tasks while minimizing errors, delays, and miscommunications.

Vasion Intelligent Print Automation (IPA) modernizes print environments, consolidates end user printing and output management, and enables intelligent document workflow automation in a cloud-native architecture. Every document that passes through the platform can automatically be routed to an eSignature workflow without the user having to leave the current application. This eliminates the need to set up workflow steps for documents already open and ready to print. With IPA, users can:

• Create short or complex, error-free document workflows, enabling people to immediately sign documents from anywhere at any time.

• Create task lists with required actions for users to ensure workflows are managed correctly and keep moving.

• Maintain visibility of workflows and the location of bottlenecks.

• Eliminate the task of manually reviewing documents to ensure that no signatures or initials have been omitted.

Automatically route documents to workflows, eSignatures, or secure storage without having to learn new tools and processes. See how it works for yourself.