On June 30, 2000 President Bill Clinton electronically signed the Electronic Signatures in Global and National Commerce Act (ESIGN Act) into law.
Fast forward to 2017 and the use of electronic signatures has become commonplace. Consumers expect it, industries embrace it and financial services appreciate the compliance and enforceability it affords. In fact, businesses are shifting their focus beyond just the signature, and capturing the full value of the digital transformation of their processes.
The ESIGN Act set the foundation for today’s digital ecosystems for financial services by facilitating the use of electronic signatures and records in interstate and foreign commerce and ensuring the validity and legal effect of electronic contracts.
Exponential Growth…Massive Room to Grow
According to an article from the Electronic Signature & Records Association (ESRA), “The usage of electronic signatures across the world has grown by leaps and bounds in the recent past across virtually every public and private sector. Consumer purchases, business to business transactions, and government bureaucracies – to name just a few – have driven the implementation and usage of e-signatures, spurred on by friendly legislation and acceptance in a number of key legal circles.”
“Electronic signature usage has grown exponentially over the past few years – with massive room to grow.” – The Path to Mass Adoption of Electric Signatures, ESRA
Taking eSignature to the Next Level
It is imperative to ensure the authenticity and preservation of the original, digitally signed contract. Buckley Sandler’s Margo Tank echoes this sentiment in a 2016 recap of legal cases in the eSignature world:
“How do you establish that you have the authoritative copy of a document that it is indeed the authoritative copy when you are challenged?…The courts are also focusing on the system reliably establishing proof of control, which copy is the authoritative one, and record integrity… You have to have a transferable record, as required by law…”
As we noted previously, for an electronically signed document to meet the greatest standards to be enforceable, admissible and negotiable, specific process must be in place—which includes establishing an “Authoritative Copy” and depositing that document into an electronic vault.
With our solution, eSigned documents are bound with a digital tamper evident seal that identifies the final document as the original and ensures compliance and enforceability. In addition, electronic vaults are extremely valuable for businesses as they provide an audit trail that follows documents throughout their entire lifecycle and controls access.
We are excited for the continued digital transformation of today’s financial ecosystems and look forward to providing world-class technology to support it. Happy National ESIGN Day!