Balancing Compliance and Customers with E-signatures
Blog: Kofax - Smart Process automation
Digital transformation across the banking enterprise has been a focus of discussion in many industry forums over the last several years. 
While advances in omnichannel customer engagement have provided new revenue opportunities, the increase in compliance is proving to be a balancing act.
As part of ongoing effort to educate lenders, American Banker presented a special webinar, “E-Signatures Deliver: Expedited, Paperless Loan Originations Increase Compliance”
Here are a few key takeaways from this webinar you should know about:
- Managing Compliance
It’s no secret that trying to keep up with the rapid and continuous changes in banking regulations can impede your institution’s efficiency and profitability. Indeed, pending changes to the Home Mortgage Disclosure Act will add another 107 metrics to reporting alone, while changes to Regulation C and rules on the consumer’s ability to repay are also on the horizon.
Digitizing the loan process mitigates many of these challenges. Specifically, integrating e-signatures helps you eliminate several manual steps in the loan process, improving data quality for better compliance and reducing the incidence of fraud.
- Faster Loan Closures
A lengthy loan process can put transactions at risk. Consumer frustration over delays in processing auto and recreational vehicle loans has been cited as the reason some have backed out of a transaction or looked for another lender. Utilizing e-signatures can abbreviate the time between application and loan closure to just two to three hours.
The mortgage process is much more complex, creating, even more, opportunities for bottlenecks. An average mortgage can take 45 days to process. Digitizing the process can help you compress the timeline (under 21 days by some estimates), cut costs and improve customer retention.
- Keep Customers Satisfied
E-signatures optimize customer satisfaction by capitalizing on mobile and online channels. If your customer can conveniently engage and sign on their preferred device—whether standing in a store, inside a bank branch or sitting at home at their desktop—then you’ve enabled a self-service option that results in a positive interactive experience and a happier, more loyal customer.
One creative provider is Cetelem, a subsidiary of BNP Paribas, which offers financing solutions to retail consumers at the point of sale for high-value goods such as furniture or big screen TVs.
Store clerks can offer the financing solution and quickly handle the transaction without touching a piece of paper. By using tablet devices in the store, customers can review the contract and sign it immediately. The results have been significant: Cetelem has reduced paper by 1.6 million sheets per year, reduced sales processing time by 54%, and can send payment the day after the sale.
Tying it all together
If you’re convinced that e-signature would be a valuable addition to your product or service offering, consider these critical capabilities when shopping for the right e-signature solution:
Platform Power – E-signature is optimized when it’s part of a larger platform with complimentary solutions (e.g., BPM, analytics and CCM). Such platforms enable end-to-end digital business processes, interaction with customers, and quick deployment.
Globally Standard Technology – Your e-signature solution must be supported by standard global technology that can manage a wide variety of signature methods.
Custom Fit – E-signature is not a one-size-fits-all solution. It must be integrated into point-of-sale solutions, mobile applications, and on-premise deployments.
E-signature has come of age and will increasingly become a critical component within a broader digital platform that enables lenders to achieve their long-term business initiatives.
To listen to the September 13th American Banker web seminar in its entirety, click here.
Learn more how e-signatures can transform consumer loans, click here.
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