Advances in technology have been at the core of human progress. From the invention of the wheel to the production and use of electricity, we have seen great strides in human innovation. We are continually finding new ways to improve our lives. Electronic signatures are one such advancement that has become more prevalent in the digital world.
Today, electronic signatures are commonly used in electronic documents and records. However, like any new component to an old system or paradigm, electronic signature has its share of misconceptions that many believe. Let us debunk some of the common misconceptions about electronic signatures for a better understanding of what it is.
Common Misconceptions On Electronic Signatures
1. Electronic signatures are not as effective as handwritten signatures.
Many people think that electronic signatures are not as effective as handwritten signatures as they lack a physical component. It is not true.
There are three critical elements of electronic signature that make it just as effective as handwritten signatures.
The first element is authentication. In this case, users need to verify the identity of the person sending them a document before they can open or sign it. Authentication can be done through various means from providing a password to scanning their fingerprints.
The second element is non-repudiation which prevents either party involved in the transaction from disputing their participation. It is often seen as an advantage in the legal world where contracts need to be secure and binding, ensuring that only the parties involved can sign or void them.
The last element is integration with electronic records, which allows for accurate and secure storage of documents. It ensures that the document has not been modified at any point during its transmission from one user to another. Users may also receive notifications if they try to open a document that has already been opened or modified.
2. Electronic signatures are not legally binding.
When we enter into a contract or simply sign a document, we make sure that all aspects are enforceable in case of a court dispute in order to protect ourselves. It is one reason why electronic signatures are gaining more popularity by the day because they allow for all parties involved to be protected in case of an issue arising in the future.
According to the Electronic Signatures in Global and National Commerce Act (E-SIGN Act) of 2000, electronic signatures are equivalent to handwritten signatures, making electronic signatures legally binding.
However, since state laws vary, you should consult with your local government office for clarification on the legality of electronic signatures.
3. Electronic signatures are not economically viable.
While electronic signatures may seem like a huge investment in the short term, they are certainly more convenient in the long run. For instance, if documents are being sent to clients or other parties by physical mail, it can take several days before reaching their destination, which results in either lost time or expensive express shipping fees.
Electronic signatures help avoid these issues since all that is needed is an email address, a soft copy of your document, and an electronic signature software or application. You can also electronically sign using your mobile phones or other devices with internet access. Considering how easy electronic signatures are to use, they are certainly more economically viable in the long run, even when factoring in the initial investment needed.
There are also some other benefits of using electronic signatures without breaking the bank, such as document handling efficiency and shortened time to market. Electronic signatures can be integrated into any business process seamlessly without slowing down the workflow. If you want to go green and paperless, electronic signatures are definitely something you should look into.
4. Electronic signatures are a recent development.
In the last few decades, technology has made tremendous strides. Even something simple like having a document signed can be done with just an application installed on your computer and nothing else. It is certainly not far-fetched to say that electronic signatures will become the most popular form of signing documents, eclipsing even handwritten signatures.
Since electronic signatures have only recently become popular, despite being around for decades, many people are still unaware of what they are and their benefits. As a result, many continue to prefer handwritten signatures because it is something that has been trusted for centuries. However, as awareness of electronic signatures increases, so too will their popularity and use. It is an aspect that will become more valuable in the near future, considering the evolution of technology.
5. Multiple electronic signatures cannot be managed.
Since electronic signatures can be applied in various ways, they bring a lot of convenience and efficiency. One such way is to make multiple electronic signatures without having to get your signatories to sign physically. You can just tag each signatory in your document and pinpoint exactly where their signature is needed.
This method of signing a document ensures that only authorized signatories can access your document. If you ever face errors when trying to sign a document with multiple electronic signatures, it was probably because you were not assigned as an authorized signatory.
Conclusion
Everything changes with time and electronic signatures are no different. When electronic signatures were first introduced to the general public, many people did not fully understand what they were or their legal value. However, with an increase in awareness about electronic signatures and the growing use of technology in every aspect of life, it is only a matter of time before electronic signatures become the norm when it comes to signing documents.
Electronic signatures will continuously be an integral part of our lives and many businesses. According to Digital Signature Market, a research report about digital and electronic signature published by MarketsandMarkets, the electronic signature market is projected to grow from $2.8 billion in 2020 to $14.1 billion by 2026. The massive growth is because of the increasing number of countries legalizing electronic signatures, the constant increase of online businesses, and the benefits of electronic signatures.
Changes in the use of technology have allowed people to do more with less effort and time, which deeply affects businesses in many ways. If you want to stay ahead of the competition, one way is to use electronic signatures in your transactions.
Knowing the facts behind these common misconceptions about electronic signatures will help you remain relevant and adapt to the new technologies and methods of business transactions.