Difference between Digital Signatures and Electronic Signatures

Technological advancements have facilitated a faster, easier way of life. Technology has also improved the accuracy of business, but there are several things about which companies remain skeptical, one of which is electronic signatures. Although many companies prefer handwritten signatures, many business people question the value of electronic signatures/digital signatures and why to adopt them. 

Thus, it is imperative to understand the key differences between digital signatures and electronic signatures before adopting them for business use. However, before discussing the differences between the two, we will firstly look at their definitions. 

What is Electronic Signature? 

The electronic signature is a digital version of a wet ink signature, secure and legally enforceable. It does not incorporate any coding, however. It can be a symbol, image, or process attached to a message or document as a means of recognizing and giving consent to the information contained therein. This is widely used for verifying documents. In general, electronic signature validation is not done by trusted certificate authorities or trust service providers, so it is not usually permitted.  

Related Articles- Electronic Signatures: New Protocol of Verification of Quality Records and Documents

What is Digital Signature? 

With Digital Signature, you can create a secure signature that works with Electronic signatures while relying on Public Key Infrastructure so that you can encrypt documents digitally. You can visualize it as an electronic fingerprint that encrypts and authenticates an individual’s identity. It is used to make sure a document is secure. A digital signature is usually validated by a certificate authority or trust service provider, which is typically legitimate.  

The Key Differences 

The following are the main differences between an electronic signature and a digital signature: 

Reasons You Must Adopt Digital Signature for your Business 

These are five reasons why adding a digital signature to your business is a good idea:

1. Quick turnaround 

The process of signing and returning a document sent via email requires many steps for employees at companies using traditional signatures. Signing any document or contract utilizing this technique is as easy as clicking a button. By replacing paper approval with these codes, you can automate the process and save time. With digital signatures, you can sign off documents almost instantly, anywhere, on any device, be it a phone, tablet, or computer. 

2. Reduced costs 

In the long run, digitalization will save you money, even though it has a cost. Paper documents are no longer necessary with digital signatures. You will get rid of printing and shipping costs. Additionally, there will be reductions in expenses associated with filing, rekeying, archiving, tracking, and processing documents requiring confidentiality. In addition to reducing ecological waste, your organization will also save money due to drastically reducing paper usage by using digital signatures. 

3. Process efficiency 

These signatures are more efficient than regular signatures because they result in fewer delays. As a result, you can track documents and manage them more efficiently. In the past, the time between the time an employee requests a document and receiving it could take weeks. Because they eliminate physical paper, they also make organizing information and documents more accessible. Documents in digital form can be searched much faster and easier than documents in file cabinets or boxes. 

Besides being able to track documents better, you will also save time. You can easily find software that sends reminder emails to signers if a document is not yet signed. 

4. Improve security 

In addition, a digital signature ensures document authenticity because it is protected with a tamper-evident seal, which indicates if any of the document’s contents have been altered after signing. Signers can also verify and authenticate their signatures with the provision of PINs, passwords, and codes. 

With digital encryption and audit trails, you can protect yourself and your organization against fraud. 

5. Better customer experience 

Any business understands how important it is to achieve customer satisfaction. However, customer dissatisfaction can lead to negative reviews, which can negatively impact a company. When your customers sign vital documents online, you can guarantee convenience no matter where they are located. They allow your customers to transact with you anywhere, anytime, and efficiently. 

The main reason many companies adopt digital signatures is to keep their customers happy. There is no wait time, no fuss, and no paperwork. 

You can also benefit from digital signatures in several other ways. A digital signature is an example of a small thing that has a huge impact. This is an excellent opportunity for your company; simply upgrade to digital signatures, you won’t regret it. 

Expand your storage space 

Virtual servers connected to your computer network or the cloud eliminate the need for file cabinets filled with paper documents for storing digital files. Using that space for something else allows your office to save space. Furthermore, physical documents use up paper, which is not ideal for the environment.

Related Article: Uses of Digital Signatures in Modern Business Processes

In conclusion 

To increase the efficiency and security of their workplace, more companies and offices are using digital signatures. As a result, it is possible to save time, money, and space by implementing a digital Document Management System for your company, improving productivity, and reducing paperwork. 

Using digital signatures is also beneficial for the companies striving for quality and compliance – especially those associated with highly regulated industries. And, at Qualityze, we have a great deal for you. All our smarter quality solutions comprise excellent in-built capabilities, including digital signatures. 

For more information and a free demo, please contact our customer success team today on 1-877-207-8616 or write to us at info@qualityze.com, and we will be right there for you.