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Summary: Electronic signature software is a digital solution that allows electronic documents to be signed using electronic or digital signatures.
Electronic Signature Software
Electronic signature software is a digital solution that allows electronic documents to be signed using electronic or digital signatures. This software is used to certify the integrity of the documents being signed and to authenticate the people signing those documents.
Note, electronic signatures are not officially accepted in all jurisdictions or situations. For example, official documentation of companies in China still require the company chops as the authoritative seal of the company.
What are the pros and cons of using electronic signature software?
Electronic signature software has begun to replace ink and paper document signing around the globe in many applications because of its clear benefits. However, it also has limitations that keep traditional signatures in use.
- Pros
Legality
Around the world, electronic signatures have been defined and made legally acceptable by legislation. This includes the US E-Sign Act, which has been in effect since 2000.
Speed
Rather than sending documents through post or by courier, having them signed and then sent back, electronic signature software allows for nearly instantaneous signing. This can speed up customer service, help supply contracts (including employment agreements), and many other business activities that require signature authorization.
Convenience
Electronic signatures can be collected anywhere via mobile devices. The signature software also acts as a witness to the signing. This means that customers or business associates can review and sign documents at their convenience rather than having to travel to offices to give their signatures. Documents can also be tracked in real-time so that as soon as they’re signed, they can be seen by all relevant parties.
Accuracy
Most electronic signature software marks all points in a document that need to be signed and will instantly check if all fields are complete. If not, it will let the signer know immediately. This greatly reduces the headaches of incompletely signed documents.
Cost-savings
Speed, convenience, and accuracy all translate into cost-savings for businesses over traditional ink-on-paper signatures.
- Cons
Security
Different types of electronic signature software provide differing levels of security. Some of these are relatively easy for threat actors to falsify or misuse and, therefore, could cause security risks.
Storage
Some e-signature software solutions require that all documents be stored on their servers, which can cause issues. Storage space may be limited, costly, or vulnerable to hacking.
Recognition
Electronic signatures, as convenient as they are, are not recognized for all document types in all countries. This includes wills in the US, for example. Therefore, a combination of traditional and e-signature software systems may have to be used in tandem.
Compatibility
Different organizations may choose to use software packages that aren’t readily or fully compatible. This issue can also be compounded when older documents have been signed using outdated software that is no longer kept updated and safe.
Cultural views
In some cultures, a person’s signature is highly respected, and providing an electronic signature may not be seen as appropriate in some circumstances.
How does electronic signature software ensure the security and integrity of documents?
Different electronic signature applications offer varying levels of security. Simple electronic signatures (SES) use no authentication or identity verification and are easy to falsify but can be quick and convenient for low-risk documents. An advanced electronic signature (AES) uses verification to identify the signer and attaches a verifiable digital certificate to their signature. Actions on AES-signed documents are also logged. Qualified electronic signatures (QES) are necessary for documents that are the most high-risk and sensitive. These include the security of AES as well as extra identity verification by a qualified trust service provider. Electronic signature security standards are legislated by the ESIGN Act in the US and eIDAS in the EU.
What are the top electronic signature software applications out there?
There are hundreds of electronic signature software packages available on the market. However, many are not widely used and may present compatibility issues, while others lack the advanced security of more advanced programs. The top applications in use today include:
- DocuSign: DocuSign is the largest provider in the electronic signature software market. It provides document management and storage, advanced security, and supports multiple languages. It is also used by businesses around the world.
- PandaDocs: Designed specifically for sales teams, PandaDoc offers document automation, e-signatures, and analytics. It helps streamline the document workflow for sales professionals, making it a popular choice for sales-centric organizations.
- Adobe Acrobat Sign: This easy-to-use extension to Adobe Acrobat allows users to sign a limited number of documents in a free version or many more with a premium subscription. It integrates seamlessly with other Adobe products, providing a familiar interface and robust features.
- signNow: SignNow offers extensive features for document management and personalization/branding. It’s a relatively affordable alternative for use by smaller teams and startups.
- DropBox Sign: DropBox Sign combines e-signature software and document management with cloud storage to create an application that’s effective for managing large numbers of contracts and other signed documents.
