What are the benefits of having an electronic or digital signature?

In today’s digital era, companies face the constant challenge of streamlining processes while maintaining security and legality in the management of their documents. Digital transformation is not just an option; it is a necessity to remain competitive in an increasingly technological and globalized market.

Document signing, an essential process in any organization, is still often performed manually, leading to waiting times, additional costs and the inherent risk of human error or fraud.

In addition, authentication and verification of these physical documents can be time-consuming and prone to legal complications. Therefore, it is vital to adopt tools, such as the Electronic or Digital Signature, that allow them to be more efficient. In this post, we define electronic or digital signature under the following concept: a form of document authentication that uses digital technologies to confirm the signer’s identity and guarantee the integrity of the document.. Although in some countries these terms are differentiated, in this post we will use them as synonyms.

What is an electronic or digital signature?

The electronic or digital signature is a mechanism to verify the identity of the signatory of a document and to ensure that its content has not been altered since it was signed. Based on digital certificates that use cryptographic mechanisms, the electronic signature provides greater security to the document, committing the signer to its content.

This process guarantees not only the integrity of the information exchanged, but also the mutual identification between the parties involved, be they individuals, companies or organizations. Among its main features are high security, non-repudiation and issuance by certifying authorities.

Is an electronic signature the same as a digital signature?

In many LATAM countries, the distinction is not always clear and the two terms are often used interchangeably or refer to the same thing. For example, in some countries, electronic signatures have legal validity and a regulatory framework, while digital signatures focus on data encryption and have no legal nature of their own. However, in other countries, these terms are interpreted inversely, where the digital signature has legal recognition and the electronic signature is used for less secure or formal processes.

Although terminology may vary among different jurisdictions, in this post we will use “electronic signature” and “digital signature” as synonyms. We define both terms as technological tools that allow documents to be digitally signed, giving them the same value as a handwritten signature and ensuring their integrity, authenticity and verifiability.

The impact of digital signatures on business

The implementation of electronic signatures in business environments has a significant impact. This technology not only facilitates document management, but also optimizes processes, reduces costs and improves security. Below, we explore five key advantages of implementing electronic signatures in your company.

1. Time and cost savings

One of the main advantages of digital signatures is the reduction of the time required to obtain signatures on documents. It is no longer necessary to print, sign by hand, scan and send documents physically. This not only saves time, but also reduces the costs associated with paper, printing and shipping.

2. More Security

Electronic signatures use advanced encryption technologies that ensure the authenticity of the signer and the integrity of the document. This means that any alteration to the document after signing will be detected, providing a much higher level of security than traditional handwritten signatures.

3. Efficiency in document management

With digital signatures, documents can be stored and managed digitally, facilitating their access and organization. This is especially useful for companies that handle large volumes of documents, allowing for more efficient management and reducing the risk of losing important documents.

4. Legal compliance

In many countries, electronic signatures have the same legal validity as handwritten signatures. This means that electronically signed documents are legally binding and can be used in legal proceedings. Regulations such as eIDAS (electronic IDentification, Authentication and trust Services) in Europe and the ESIGN Act (Electronic Signatures in Global and National Commerce Act) in the United States have established solid legal frameworks for the use of electronic signatures.

5. Environmental sustainability

By reducing the need for paper, electronic signatures contribute to more sustainable and environmentally friendly business practices. Less paper means less tree felling and less waste, aligning with corporate social responsibility initiatives.

Challenges in the implementation of digital signatures

Despite its many benefits, the implementation of electronic signatures also presents certain challenges. These include:

1. Resistance to change:

The adoption of new technology often encounters resistance from employees, who may be accustomed to traditional methods of signing documents. This rejection may be due to a lack of familiarity with the technology or a perception that the new system is unnecessary. To overcome this resistance, it is crucial to involve all levels of the organization from the beginning, explaining the benefits and providing support during the transition.

2. Staff training:

Successful e-signature implementation requires that employees understand how to use the new technology. This involves providing adequate training programs to ensure that all staff are trained to handle the digital signature effectively. Training should cover not only the technical use of the tools, but also security best practices and regulatory compliance.

3. Compliance with regulations and security standards:

Electronic signatures must comply with a variety of regulations and security standards that vary by jurisdiction. This may include compliance with specific laws on electronic and digital signatures, as well as information security standards to protect sensitive data.

Companies must ensure that their e-signature solution complies with all applicable regulations, which may require legal and technical advice.

Overcoming these challenges requires careful planning and a well-defined implementation strategy. At GeneXus Consulting we accompany and address the needs of our clients for an effective implementation of electronic signatures, ensuring that each step of the process is managed with efficiency and compliance.

LATAM Regulations

In Latin America, regulations on electronic signatures vary from country to country. Different LATAM countries have described specific legal frameworks to regulate the use of electronic or digital signatures, ensuring their validity and legal recognition.

Peru: the main objective of the law on digital signatures and certificates, No. 27,269, is to regulate the use of digital signatures, equating them in validity and legal effectiveness to handwritten signatures or other forms of manifestation of will.

Uruguay: Law No. 18,600 recognizes the admissibility, validity and legal effectiveness of electronic documents and electronic signatures.

Mexico: the Advanced Electronic Signature Law (LFEA) establishes that electronic documents and data messages with an advanced electronic signature will produce the same effects as those presented with a handwritten signature and, consequently, will have the same evidentiary value that the applicable provisions grant to them.

Colombia: Article 18 of Law No. 2,069 establishes the use of electronic and digital signatures as a tool to facilitate innovation and digital transformation.

Ecuador: in the Law on Electronic Commerce, Signatures and Data Messages, the Ecuadorian State recognizes the electronic signature as having the same validity and legal effects as a handwritten signature.

Chile: Law No. 19,799 on Electronic Documents, Electronic Signature and Certification Services establishes the legal framework for the use of electronic signatures, granting them legal validity comparable to handwritten signatures.

Argentina: Law No. 25,506 on Digital Certifications seeks to regulate and facilitate the secure and effective use of digital signatures within the digital context in Argentina.

Brazil: Law No. 14.063 provides for the use of electronic signatures in interactions with public entities, acts of legal entities, health and public software licenses. Its objective is to protect personal and sensitive information, and improve the efficiency and security of electronic public services.

Conclusion

The electronic or digital signature offers numerous benefits for companies, from cost and time reduction to improved security and sustainability. With solid legal frameworks and a growing adoption in Latin America and the rest of the world, the electronic signature is consolidating as an indispensable tool for modern companies.

Meet our Electronic Signature (Digital Sign) solution and ensure the integrity, authenticity and verifiability of the documents generated in the different systems and applications used in your organization.

WHAT FUNCTIONALITIES DOES DIGITAL SIGN BRING TO THE SYSTEMS?

Allows to digitally sign PDF and XML documents.

‣ Support for visible signature and XadES.

‣ Signing using different types of tokens.

‣ Massive signature, saving time and effort by signing many documents at once.

‣ Signatures are performed in the client or server browser.

‣ Designed, described and tested by security experts.

‣ Compatible with different regulations.

‣ Developed following the latest technological trends.

‣Integration through APIs.

‣Compatible with any technology.

Contact one of our specialists to implement it in your organization’s systems.