Legal protection allowing customers to sign loan documents and open accounts electronically has been in place since passage of the Electronic Signatures in Global and National Commerce Act 10 years ago. But e-signature has become increasingly popular among even the smallest of community banks, as a variety of technologies have taken much of the IT hassle out of the bank. The market for e-signature software is larger, but use of online solutions from software-as-a-service providers is becoming more prevalent, says Gregg Kreizman, research director at the Stamford, CO, market-research company Gartner Inc. Tom Gonser, VP at DocuSign Inc in Seattle, explains how his firm's online solution works: A community bank employee -- "Pat" -- with documents to sign logs onto the bank's DocuSign account on DocuSign's server using a Web browser and creates a new transaction, called an envelope. Once in DocuSign's server, documents are locked down so they cannot be tampered with, and the audit trail continues to monitor them.
with Interest T e c h T a l k Sign of the How it might work Tom Gonser, vice president at DocuSign Inc. in Seattle, Times explains how his firm’s online solution works: A community bank employee—“Pat”—with documents to sign logs onto the bank’s DocuSign account on DocuSign’s server using a Web browser and creates a new trans- action, called an envelope. Pat uploads all documents that need signatures into that envelope. E-signatures are catching on as the last stop in paperless lending Pat can also print documents right out of the bank’s applica- BY KATIE KUE H NE R - H E BE R T Many community banks use tion, using a print driver, which e-signature technology offered can be installed on the employee’s L egal protection allowing customers to sign loan documents and open accounts through their core processors, which contract with e-signature vendors for various applications. computer. Using this tool, Pat then selects “print” from the standard application menu and selects electronically has been in place Others contract directly with “send in DocuSign envelope” since passage of the Electronic third-party vendors, which pro- rather than a local printer. Instead Signatures in Global and vide a software-hardware combo of printing a paper copy, the driver National Commerce Act 10 (including digital signature sends the documents directly to years ago. But e-signature has pads), an online solution or both. the bank’s DocuSign system and become increasingly popular The market for e-signature into the envelope to prepare it among even the smallest of software is larger, but use of for signature. Both options a
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