Everything you need to know about electronic signature

Digital transformation has changed the dynamics of the business world. All companies must adapt to it to gain more market share. the cloud computing, 5G, the Internet of Things (IoT) and virtual reality are at the peak of innovations that promise to change the way we consume and interact with the consumer. In this movement, the electronic signature has experienced a dazzling Perseus in recent years.

In this tsunami of technologies, there is one which is essential for increasing business productivity and which is transversal for all segments: electronic signatures.

Alongside these technologies, we have Assurtechs, Proptechs, Fintechs, Regtechs. In this other article, I have dedicated over 2000 words to tell you everything you need to know about electronic signature.

Read carefully !

?? What is the electronic signature?

First, there is a wide range of electronic authentications involved in the same group of electronic signatures. Can we have :

• Digital certificates;
• Digitized signatures (on paper);
• IP recognition;
• biometrics
• Token;
• Authentication with login and password (for example, for Internet banking);
• Social authentication (with social networks, such as LinkedIn);
• Other

Electronic signature is a term that generally represents the type of authentication that replaces the autograph signature. In fact, it is the easiest way to authenticate a document, because it uses computer means to complete a document.

Currently, there is a strong increase in the adoption of this type of authentication around the world to formalize agreements between partners.

Now is the time to talk about the general benefits that this technology offers to businesses regardless of category, even with the state.

?? What are the benefits of using electronic signature?

The electronic signature can offer various functions depending on the type of uses. The most basic are used to authenticate a document, identifying the author. Its advancements ensure full integrity ensuring that the data message has not been altered.

Some of the most notable benefits of electronic signature include:

1. Cost reduction

A paperless office reduces investments in purchasing paper, printers, pens, toners, files and storage space. This makes a big difference in the results achieved.

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Therefore, the electronic signature is a source of savings for companies.

2. Effective and efficient organization

Document management is more efficient with the adoption of electronic signatures. It means saving time. Organizations waste time printing, launching, sending, or searching for documents in their physical files.

Also, it collaborates so that offices and teams are more organized, since all documents are stored in the cloud, being able to search for them at any time and by any means authorized by the security device. Only an online search is needed to retrieve a document and review it immediately.

This way you don't waste time or money and at the same time you have a backup.

3. Mobility

By digitally signing a contract, you have access to content anytime and anywhere with the support of a computer, tablet or laptop. It is therefore more practical than a paper document, because it is sent directly to the email of the signatory and can be transmitted at your convenience.

Instead, the paper signature is unique. For example, if the document is lost, you must create another one and start the process to sign it again, contacting the entity in charge to request a certified copy if it is registered. Otherwise, you lose the whole process!

4.Safety

Unlike paper documents, those with an electronic signature cannot be edited or modified.

Digital protection systems are very efficient and completely reliable, which is why this certification stands out above all for its reliability. In other words, the chances of fraud are zero!

5. Increased business productivity

In the case of companies, the electronic signature makes it possible to reduce a large number of steps and bureaucratic steps to execute or receive requests. By simplifying the authentication process, it is possible to speed up organizational processes and tasks to yield more dividends and deliver better business results.

6. User experience optimization

The electronic signature also significantly improves customer service in companies that use this technology to sell their products and services.

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For example, in banking institutions, electronic signature provides a platform where customers can perform all their procedures and orders digitally, which adds great convenience and security in transactions.

7. Disposal of paper

A concern that is addressed from various points in multiple industries is the excessive use of paper in their operations: in this sense, the electronic signature is a solution.

This digital certification method is changing the way transactions are carried out and through its use around the world, it can be the answer to reduce unnecessary paper consumption, becoming a sustainable process and a great ally of the 'environment.

?? Valid Agreement Types for Electronic Signatures

The Civil Code – as we will explain later – reinforces and guarantees the validity of contracts concluded by means of technological solutions such as electronic signatures.

For this, it requires the production of proof of the authenticity of the signatories, the integrity of the documents and the possibility of being consulted in the future, as provided for by the law on advanced electronic signatures. Documents and contracts are authorized to be signed with this type of technology, since the parties give their consent.

Here are some of the documents, contracts and resolutions that benefit from the electronic signature:

• Court decisions;
• Approval of quotes;
• Service provision contracts;
• Purchase-sale documents;
• Employment contract ;
• Income documents;
• Commercial notifications;
• Notifications of changes to the terms and conditions of use;
• Business notices.

An interesting observation to note is that different regulations around the world recognize the use of electronic signatures in different types of agreements. This provides cost savings and practical benefits for multiple operations.

This means that it is a system that is highly tested and accepted by the business community around the world, also providing multiple benefits and speeding up the internal processes of various organizations.

?? Basic electronic signature process

How to sign a document online? To perform a basic process of a simple electronic signature, it is necessary to follow the following steps:

• The signatory prepares and signs an electronic document.
• Thanks to the application used to sign electronically, a summary of said document is established, which is unique and does not allow editing, which is a guarantee of security.
• The application creates a summary of the transaction: this new document is precisely the electronic signature.

As a result of this whole process, a new document is generated from the original and the signer's keys, having the electronic signature following the same original document.

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But what makes a document valid to form an electronic signature? We will explain it to you in detail below.

?? Conditions for considering a data message as valid

The necessary conditions to validate the information and obtain an electronic signature are:

• The content of the data message is that information with which two or more parties sign an agreement.
• They negotiate and validate the content of said message: once accepted, it is signed.
• The parties agree to use the private key that generates the electronic signature.

Therefore, by signing electronically, the signers can be identified and it can be determined that the message has not been altered and that there is sufficient evidence to confirm the authorship of the signatures. On the other hand, the electronic signature has several types depending on its scope and purpose.

?? Types of electronic signature

Handwritten and signed documents are already obsolete for the world we live in. Electronic signatures are part of digital transformation, as they speed up processes and procedures, providing countless benefits to businesses. Today, there are 4 types of legal electronic signatures, namely:

1. The simple electronic signature

The electronic signature is a series of data in electronic form in a data message whose verification requires a user name and a password to be able to sign digitally.

2. Advanced signing

The advanced signature is the set of data and characters that allows the identification of the signatory, created by electronic means under their exclusive control. It is therefore only linked to the signatory and to the data that identifies him as such, offering the possibility that before any attempt to modify them, he can be detected. Thus, this type of signature has the same scope as the autograph signature.

The signature creation data correspond exclusively to the signer. This data must be under the complete control of the signatory. It is possible to identify any modification or alteration of the electronic signature once it has been made. It is possible to detect any alteration of the information integrity of the data message after the moment of signing.

Similarly, it differs from the simple electronic signature thanks to these elements:

• Functionality: satisfies the autograph signature requirement and belongs exclusively to the signatory.
• Authenticity: the identity of the signatory can be verified and its reliability guaranteed.
• Integrity: uses technological means to determine whether the content of the data message has been modified.
• Non-repudiation : the sender cannot deny authorship of the signed content.
• Confidentiality: only the signatory is authorized to decrypt the content of a document.

As you can see, you are obviously very protected with this type of signature!

3. Digital signature

The digital signature involves a set of data in digital form, which is transferred in a data message – attached or associated – in order to identify the signer and to indicate that the information collected is approved.

4. Biometric signature

The biometric signature is a signature made by the signer on digital devices, such as tablets or smartphones. Its objective is to identify the signatory, but it depends on mechanical, physical or biological parameters, such as the fingerprint for example. With this in mind, it is necessary to distinguish them from others associated with the electronic signature.

Keep reading!

?? Difference Between Electronic, Digital and Scanned Signature

Sometimes, some users may get confused about the difference between electronic, digital or scanned signature as they are very similar concepts.

At the outset, it should be noted that electronic signature is the representation of a handwritten signature. To start, imagine that you signed a contract on paper with a pen. The graphic image of your signature represents your consent to all of the rules in this document.

The electronic signature replaces traditional evidence – the graphic image made with pen on paper – with a new set of electronic evidence. The date and time of the signature, the e-mail address and the IP address of the signatory, among other data.

now the digital signature is one of the authentication models that an electronic signature can use: in addition to representing the signatory and recording the proof of his consent, this signature uses a unique digital certificate that contains asymmetric cryptography keys, because without them, it will not be.

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To decode the encrypted message, two keys are generated: one public and one private. The first is adopted to encrypt the message, while the second is used to decode it. Thus, it is possible to add a new level of reliability to the formalization.

Of course, the above concepts should not be confused with the digitized signature, which is the image of an autograph signature transferred to the digital medium using a scanner. In general, the digitized signature has no legal value, as it does not represent the original form of consent.

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