E-SIGNATURE AS THE DOOR TO DIGITAL TRANSFORMATION

By Ernesto Cárdenas Salcido

All industries are taking steps to digitalize and standardize processes, which not only reduces costs but also opens up new areas of opportunity. The Covid-19 pandemic has accelerated this need and in the changing conditions, the electronic signature (e-signature) represents the first step to digitalization.

Digitization implies modifying processes, procedures and technologies where resistance to change can be considered “normal” (derived from the human factor) and it is one of the reasons why not all companies have started or accelerated their digital transformation. Therefore, in addition to driving change from top to bottom of corporations and investing on training, an adaptable mindset is required.

Digital transformation should be done in an incremental way for which the digitalization and electronic signature of documents is as a quick-start and easy to implement change, in addition to serve as a door to other technologies, it allows corporations to maintain operations.

The Fintech industry is a paradigmatic example of digital transformation. Its objective is to take advantage of technology to transform the industry and one of its traits is to provide financial services focused on clients, in an agile, simple and reliable way. The focus on the customer will become one of the main differentiators of digitization because users will be able to compare different options and change between competitors with ease. In this sense, it is likely that market participants that do not digitize and seek to provide better services to their customers will simply fall behind. It is important to mention that the client focus extends to all industries and is therefore not exclusive to the financial sector.

Another aspect of competitiveness is the reduction of costs, where special consideration can be given to e-signature as it has immediate economic benefits. The following example illustrates the costs of using wet signature as opposed to e-signature.

In conclusion, digitization is no longer something “desirable” and has become a necessity. This process implies a mindset change where betting on training and soft skills, the circumstances of the “new normal”, the constant improvement in the user experience and strong digitalized competition are all factors that must be taken into account. In this context, the e-signature represents an excellent first step to digitalization with high impact and low implementation costs, in addition to allowing companies to continue doing business remotely.

Bibliography:

Harvard Review. Digital Transformation Is Not About Technology

Mckensey. Digital transformation: Improving the odds of success

Delloite. Part of the Future of Financial Services series