Digital signatures have been swiftly gaining adoption in recent years, which has enabled secure communication among enterprises and government institutions. Several organizations have transformed from traditional hand-written signatures to digital signatures that offer various benefits, such as time savings, reduced expenses, and overall improvement in operational efficiency. Specifically, the most significant changes in recent years have been the adoption digital signature laws in many governments.

Due to covid-19 pandemic, many regulatory agencies are permitted to use digital signatures for all transactions than required pen and ink. For instance, the Federal Reserve Bank, the Securities and Exchange Commission (SEC), and the Internal Revenue Service (IRS) have issued digital signature guidelines in the US. Thus, all parties involved in the digital signature transaction feel secure and confident about executing the signature digitally.

Further, with all the laws and regulations, North America is anticipated to have an increasing demand for digital signatures in the upcoming years. Alongside this, the surging utilization of e-signatures in multinational companies and small-scale enterprises to reduce online fraud, coupled with advanced technologies, drives the demand across the region. Globally, the heightening adoption of cloud-based services among organizations with increasing penetration of smartphones led to the extensive presence of digital signature solution providers. In fact, according to a recent report analysis by MarkNtel Advisors, The Global Digital Signature Market is projected to grow at a CAGR of around 28% during 2022-27.

Public Key Infrastructure: The Technology Behind Digital Signature

A Digital Signature is an electronic signature that securely facilitates a signer with a document in a recorded transaction. They use a standard, accepted format called Public Key Infrastructure (PKI) to offer high security and universal acceptance. Public Key Infrastructure is software, hardware, and procedures necessary to securely manage digital signatures. Each transaction comprises a pair of keys: a public key and a private key. The Public Key is available to all who must validate the signers' digital signature. On the other hand, the private Key is not shared and will be used only by the signer to sign the documents.

Cloud-Based Services: Reliable, Convenient, and Robust Security

Cloud-Based digital signatures have been a model for reliable, convenient, on-demand network accessibility that performs unique digital signature operations. Further, the data exchange between a signer and a signing-enabled cloud platform covers performance results, robust security, cost-effectiveness, scalability, flexibility, and unlimited storage. As a result, numerous organizations are adopting cloud-based digital signature solutions to leverage several benefits of the SaaS (Software-as-a-Service) distribution model. Thus, organizations obtain the freedom of adding or removing signers when needed.

Top Digital Signature Tools

Adobe Acrobat Sign

This is a cloud-based service offering secure, legal signatures in all device types. It integrates with existing applications, including Microsoft Office and Dropbox.

DocuSign

This is a standard service that ensures signatures abide by ongoing regulations. Its services comprise an expression signature for the primary global transaction and a European Union-qualified signature that complies with the internal European market.

Dropbox Sign

This tool assists signers in preparing, sending, signing, and tracking documents. The tool's unique features include embedded signing, custom branding, and embedded templates. Further, it also integrates with tools such as Microsoft Word, Slack, and Box.

PandaDoc

This tools offers software that allows users to upload, send, and collect payment for documents. Further, users can also be able to track document status and receive notifications in case of anyone opens it. Views, comments, or signs a document.

Sectors Deployed Digital Signatures

The Governments of many countries majorly publish electronic versions of budgets, public and private laws, and legislative bills with digital signatures. Further, it is also used in processing tax returns, verifying business-to-government transactions, ratifying laws, and managing contracts. 

Healthcare industries use it for easy and anytime data sharing, thereby keeping it confidential, enhancing cost and time savings, and improving treatment and administrative processes. Further, it replaces paperwork such as registration, patient consent for treatment, discharge documents, prescriptions, and invoices.

It also enables BFSI firms to streamline complex operational processes by offering customers improved security and enhanced TAT (turnaround time). Specifically, it aids accountants & tax specialists in instant accessibility of user signatures for various legal necessities.

Financial Sectors facilitate contracts, paperless banking, loan processing, insurance documentation, and mortgages complies with local laws and regulations.