Efficiency & Security on the Digital Highway

Banking Frontiers|June 2020

Efficiency & Security on the Digital Highway
Mr. V. Srinivasan, Founder & Chairman of eMudhra, advocates digital signatures as the next level of digital transformation:

Mr. V. Srinivasan observes that the question is no longer whether ‘Paperless’ is needed or not, but rather, what will be the time frame for societal paperless transformation

For the last several years, banking has been evolving in India from physical operations to paperless mobile interactions in an increasing number of departments allowing customers to access relevant systems through multiple Digital Identification methodologies like user ID, password, secure tokens, digital signatures, etc. However, a lot of these processes still involve paperwork and signatures which often act as an impediment to the progress towards Digital Banking. When we further put this in context of the Bank’s own back-end processes, one can imagine the magnitude of cost and efficiency savings that can be achieved, especially considering that an average bank may have anywhere from 300-700 forms that need signatures!

The value of leveraging digital signatures (or eSign) to go paperless has never hit home harder than during the past few months of lockdown. Mr. V. Srinivasan, Founder & Chairman of eMudhra, explains: “The global pandemic has taught us that going paperless is more than just being about efficiency and cost savings. It is a critical Business Continuity requirement that is instrumental in protecting enterprises from unforeseen scenarios like COVID 19. The good news is, technologies and legislation are already in place to propagate the progress towards a paperless society.”

THE IMPETUS

The Information Technology Act of 2000 widely promoted the use of Digital Signature (and eSign) to replace physical signatures. While it has been in effect for 2 decades, a great amount of technological ease has been brought thanks to the progress of technology and the flexibility of the regulatory framework. Perhaps, this is the reason that adoption has been rapidly growing YoY over the past few years as compared to the previous decade.

The introduction of eSign, a remote signing solution that makes digital signing quick, easy, and efficient (1 or 2 step process) have been a critical catalyst for digital adoption in India. When you pair that with the flexible commercial models that are often transaction based for organizations, enterprise adoption was bound to rise.

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June 2020