Understanding Electronic Signature

Going into a branch or office to sign documents is becoming a thing of the past. Today’s eSignature technology empowers people to sign a variety of documents, with full legal effect. This is transforming the way banks and credit unions do business with their clients. Let’s take a look at eSignature and learn more about this disruptive technology.

What Is an Electronic Signature?

One of the main concerns in the age of digital documents is whether or not signing records online will carry the same legal weight as working with paper and ink.

Today, the answer is uniform across the country: electronic signatures are tantamount to ink signatures—if all parties to the agreement resolve to work with electronic documents, and demonstrate an intent to sign them electronically.

There are a few exceptions, depending on jurisdiction. The list of exceptions typically includes signing for power of attorney, wills or trusts, and declarations under oath. But for the majority of legal agreements, an electronic signature allows customers to sign and complete legally-binding documents from the comfort of their own homes.

What Is the Electronic Signature Act?

For the past two decades, since the enactment of the U.S. Electronic Signatures in Global and National Commerce (ESIGN) Act, eSignature has had the backing of federal law. The ESIGN Act, together with provisions from its precursor, the Uniform Electronic Transactions Act, requires that the electronic signature is processed through a system that:

  1. Records the process by which the signature was created, or
  2. Produces a statement, inserted in the signed record, showing the agreement became effective by way of electronic signing

The record must be retained and available for those entitled to possess the agreement.

Major Players in the Electronic Signature Sphere

DocuSign and Adobe Systems’ Adobe Sign have led for decades in the sphere of electronic document creation and verification. Smaller contenders, such as Vasco Data Security International, with its eSignLive, have joined in.

Liveoak users have the ability to synchronously edit and collaborate with customers to complete forms and applications. Once complete, representatives can guide their customers through the digital signature process via DocuSign which is integrated within Liveoak’s platform.

How Liveoak Uses eSignature to Streamline Financial Interactions

We help clients integrate a full System-of-Agreement into their current applications. Onboarding, and various transactions that once took days, can now be completed the same day, in minutes, right inside a live conference.

At the end of each conference, participants receive copies of t completed and signed documents, along with shared files, photos and identification collected during the conference. Further, each conference includes the System-of-Audit™, which is a comprehensive record of all actions taken by each conference participant.

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