Signatures play an important role for many reasons. They are the only way to give permissions or approvals. Be it a contract, an agreement or an invoice, signatures allow us to approve everything. They also provide evidence that the approval on certain action was given. Signatures do help in protecting both the parties from backing out of any deal in case any one of them disagrees.
Traditional Wet Ink Signatures
What do you think of when you hear about the word “Signature”? Ink on paper is all we still recall and connect with the terminology signature. A wet ink signature is valid when you physically sign on any document/paper as you physically approve/agree to it. A wet signature can be done by writing a name, symbol, a special character or even a name or company seal on a piece of paper that requires time to dry. But today, this isn’t the only option for authorizing a document.
The use of wet ink, electronic or digital signatures totally depends on each agreeing party. Since the ESIGN act became effective in 2000, digital and electronic signatures hold equal legal value as traditional wet ink signatures.
Drawbacks of Traditional Signatures
- Wet signatures slow down the business processes because of their dependency on the physical exchange of the contract paper.
- The process was cumbersome as it required the paper to be printed, signed, scanned and then shared with the other party.
- They demanded the signatory’s presence which was not always possible.
- The authenticity was questionable.
- It was very much prone to forgery.
- Environmental concerns due to paper wastage.
The above drawbacks as well as people moving towards digitization, e signing came into existence.
Electronic Signatures & How they are Superior to Wet Ink Signatures
An e- signature is basically represented as an image or a symbol that authorizes signers’ message, document or a contract. This works on password-based methodology or says lock and key methodology. This came into existence to overcome the loopholes of the traditional signing process. They are prior to handwritten signatures because of the following reasons:
- Enhance Security
- Easy Tracking
- Time Savvy
- More Authentic
- Speed up the process
- Eco- Friendly
Electronic signatures captured the global market speedily with the penetration of mobile phones and its use for day to day work. Still, e-signs lacked some security and authenticity which led to the emergence of digital signatures. This is a more advanced version of e signature and guarantees full security. It ensures legal compliance too. This is all because of the advanced technology called Blockchain technology. Apart from this, there were many factors that led this advancement to boom.
The Key Market Drivers of Digital Signatures
- Increase in demand for multifactor authentication across businesses
- The rise in demand for multi-level security
- Rising environmental concerns
- Demand for advance signing solution to avoid forgery
In addition to the above drivers, the digital signature market observed a compounded growth. It not only became trending but a necessity for all the businesses to go for the digital documentation process.
Trends of Digital Signatures
The global digital signature market value is projected to reach around US$ 6,128.0 Mn by 2026 with a CAGR of 28.77%.
Below is the graph depicting the global market size for the digital signature:
In 2019, The entire digital signature market valued around USD 3.72 billion and by 2025 is forecasted to reach around USD 6.93 billion, at a CAGR of 21.5%.
Not only this the adoption around different regions across the globe is Moderate as depicted in the below graph:
As you can see the above facts which show that the businesses are shifting from e- signatures to digital signatures for varied reasons like legal, security, authenticity and many more. There is much more which would be required in an e-signature solution in the future.
Future Needs: Cutting Edge Signature Solutions
With an increase in medium and large-scale organization, the documentation process would be more systematic and authentic with below cutting-edge solutions that would make a big difference in running an organization.
- Biometric Solutions: Use fingerprints, face, and IRIS to sign
- Live Signing Solution: Face to Face signing on video
- Aadhaar e-sign solution: Sign and authenticate based on Govt. Id
- Bulk Signing Solution: Automated PDF signing based on an algorithm
Make a wise decision and choose from the best solutions given above for your organization.
We at Cygnature are proficient in catering to all the future needs of your business and assist you in integrating the above-mentioned advance solution to your current working process. To know how we can help you ease your processes get in touch with our experts at firstname.lastname@example.org.