In a world where standards and expectations for doing business are rapidly increasing, many businesses are prioritizing digital transformation and turning to software solutions to help modernize and keep up with their competition.
Key business documents, such as contracts, are increasingly being reviewed and signed digitally instead of by hand. Consider how many hands a document passes through before being submitted for internal approval, or external signatures. Configuring approval workflows with an e-signature step a is great way to speed up business operations by reducing bottlenecks and increasing visibility during these processes.
In the USA, various legal acts such as the ‘E-Sign Act’ are in effect to ensure a contract will not be denied legal validity on the basis that it is digitally instead of physically signed. How can digitizing help optimize processes? Let’s learn more about which type of electronic signature is right for your process by reviewing the common electronic signature types; simple, advanced and qualified.
Three security levels of electronic signatures
There are various distinctions between three types of electronic signatures. Within one department, different levels of signatures maybe be needed for different business documents. Document management software platforms can automatically route your business documents through the correct signature process based on a set of rules and logic. The best signature type can be identified based on considerations like the level of security needed, industry-specific compliance or regulations, and your company’s internal policies on such matters. Let’s dive in.
Simple Electronic Signature (SES)
For many documents a simple electronic signature will suffice. This signature level is not legally binding, so don’t expect it to protect against fraud. This signature type does not guarantee verification that the person signing is who they say they are. Perhaps you’d simply like employees to acknowledge they won’t heat up fish in the break room, or perhaps you’re looking to confirm attendance at a networking event. An SES can often be sufficient for similar business needs.
Advanced Electronic Signature (AdES)
When it’s required for a business to be able to identify the signatory of a document or the creator of the signature, an advanced electronic signature is needed. In the B2B world, this signature class is widely used for commercial contracts or HR related documents. The advanced signature has medium documentary proof. Many modern process automation software platforms allow for seamless integrations to a businesses preferred AdES provider.
Qualified Electronic Signature (QES)
For highly regulated documents requiring the most secure digital option for signatures, a QES is here to save the day. In these cases, the signer’s identity is required to be verified by one or more third-party trust service providers (TSPs). This verification process generally entails a login step before one can sign, making it possible to create an audit trail of the signature process. When used together, factors like these combine to qualify a signature as a qualified electronic signature, the legally-binding digital equivalent to a handwritten signature.
Interested in learning more about approval process automation or implementing digital signatures into your processes? Contact with one of our Business Process Specialists, or call to speak with an expert today.
