Digital Signatures as a Driver of Digital Transformation
Many companies still print documents to sign them and send them back to the other party. This is often a cumbersome process that can be avoided easily with digital signatures. It not only saves time and resources, but also supports legally binding document workflows, because PDF documents signed with a qualified electronic signature can be legally valid as well. In this article, we highlight five key benefits of using digital signatures.
Let us clarify: Digital signature and electronic signature - the same thing?
Digital signatures prove a document’s authenticity and are a specific implementation of an electronic signature. A digital signature uses cryptographic methods to uniquely identify the signer and ensure that the document has not been altered after signing.
There are several types of electronic signatures. Three important ones are:
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Simple Electronic Signature (SES)
This can be a scanned handwritten signature, an image, or another digital mark attached to a document. Although it is less secure than other signature types, it is accepted in many everyday scenarios.
Examples: offers, purchase orders, privacy statements
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Advanced Electronic Signature (FES)
Advanced electronic signatures, which include the digital signature, provide a higher security level than simple electronic signatures. They require clear identification of the signer and use cryptographic methods to ensure document integrity. They are therefore often used in legal and business transactions with elevated security requirements.
Examples: rental agreements, purchase contracts, non-disclosure agreements
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Qualified Electronic Signature (QES)
The qualified electronic signature is the highest level of legal recognition for electronic signatures. It is based on a digital certificate issued by an accredited certification authority. QES meets strict legal requirements and is used in legally binding documents and transactions with particularly high security standards, for example in public authority documents or contracts. QES is legally equivalent to a handwritten signature in many jurisdictions.
Examples: bank account opening, loan agreements
In this article, we use digital signature and electronic signature as synonyms, even though from a legal perspective and under the current eIDAS regulation, the terms are defined more specifically.
The handwritten signature as a visual element
Digitally signed documents often include a handwritten signature image that visually confirms the content. In theory, any visual marker could appear at the end of a contract. Legal validity comes from the underlying digital process running in the background. Even if it is mainly visual, the handwritten look still makes contracts feel complete to the human eye.
Five benefits of using digital signatures
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A valuable trigger for process improvement
Companies introducing digital signatures often need to review internal processes and legal workflows. This can reveal blind spots and uncover optimization potential in other digital business processes.
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Resource savings
Companies using digital signatures reduce paper, printing, and shipping costs and move faster toward a paperless office. This also benefits the environment.
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Time and cost efficiency
If contracts and other important documents no longer need to be printed and mailed around the world, digital signatures save a significant amount of time. If documents later need to be digitized again for long-term archiving, there is no media break because everything is already digital. This saves not only time but also operational effort.
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Greater security and integrity
Digitally signed documents are tamper-evident and trustworthy because the sender can be clearly identified. This is achieved through cryptographic methods that ensure authorship and integrity of signatures via digital keys. The encryption and decryption process runs in the background, without additional effort for signing parties.
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Versatile use across industries
Digital signatures are used in many sectors. Banks and insurers use them for processes such as lending and account changes. Public institutions use them for funding applications, building permits, and tenders. Companies use them in supplier contracts and hiring workflows.
Digital signatures accelerate digital workflows
Digital signatures significantly speed up business processes. They allow documents and transactions to be handled quickly and seamlessly online, making workflows more efficient. The result is a positive domino effect that drives further digital transformation across organizations.
Further information:
Securing documents with digital signatures - Part 1, Part 2, Part 3