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Sep 23, 2021

Compelling Reasons to Switch to Digital Signatures

Digital signatures can minimize human errors in signing important documents. Fewer errors from both the customer’s and company’s side make t

Digital signatures are a new document-signing innovation for companies and agencies. They are practical, efficient, and safe. However, in reality there are still companies who are still hesitant to adopt them. So, what should you do to convince such companies to switch to digital - and more particularly, to implement digital signatures? Read on and see.


Things to convince a company

Changing habits and beliefs is never easy. It cannot be done with a simple wave of the hand. Digital signatures are no exception. But there are a few situations and reasons that will definitely start you thinking about the importance of digital signatures. If you are one of those who are hesitant, or if your company is still unwilling to take the plunge, take a look at the reasons below.


  • Consider the increased returns from investing in e-signature technology

Every company or individual will definitely weigh up all the factors before implementing changes, including technological changes. The primary consideration is whether digital-signature technology can provide an acceptable return on investment. The way to find out is to compare digital signatures to existing wet signatures.


Calculate how much it costs to procure paper needed every month. Calculate how many documents need to be printed and scanned. Calculate the logistical costs of dispatching each document. Finally, calculate how much it costs in storage space to file your documents..


Then calculate how much a subscription to a digital-signature provider will cost you. Of course, every Electronic Certificate Operator (PSrE) offers various features. The more diverse the features, the higher the value. But the price could be even more affordable. Consider what features you really need, and what features can increase your ROI.


Generally speaking, the only costs associated with digital-signature technology are fixed-period maintenance costs, which go towards improving the services provided.


A study conducted by Forrester concluded that companies that switch to digital signatures can reduce the administrative costs of making agreements by 50% for one year. This is certainly not a small amount. So, are you still hesitating about digital signatures? Think again.


  • Digital signatures are safer

The second reason for switching to digital signatures is enhanced security. Digital signatures are much more secure compared to conventional wet signatures on paper documents.


Using conventional (“wet-stamp”) signatures lays itself open to signature forgery. Wet signatures can be imitated and copied by irresponsible parties, thus exposing them to the risk of criminal acts such as fraud.


Digital signatures, on the other hand, can prevent the risk of forgery. A digital signature is guaranteed to have been signed by the owner of the signature. The digital signature is backed by an audit system that ensures that the signatory is the person concerned. In addition, to improve technological security, digital signatures involve an encryption system that can store private key data and public keys to verify their validity.

  • Digital signatures can increase client satisfaction

Using digital signatures can have a positive impact on customer and client satisfaction, because they provide a better consumer experience. Several factors that make digital signatures a better experience:


Firstly, digital signatures can minimize human errors in signing important documents. Fewer errors from both the customer’s and company’s side make the service process run smoothly and quickly.


Secondly, thanks to digital technology, all signing processes using digital signatures can be done in just seconds. This includes the signing of documents by the company or partners, even though they are in physically different locations.


Thirdly, when you and the company use digital signatures, the company's reputation and consumer trust in the company will increase. Consumers will view the company as innovative and committed to continual improvement of its customer service.

  • Digital signatures are legally valid and undeniable

The final benefit of digital signatures that should overcome your hesitation is that digital signatures are legal and cannot be denied.


Digital-signature technology has been recognized by law in Indonesia, under Article 1 Item 12 of Law Number 19 of 2016 in of the Law on Information and Electronic Transactions which states that digital signatures are an important verification and authentication tool that supports electronic transactions. Under this law, digital signatures can be legally used in Indonesia.


Apart from the legality aspect, you should also be aware that digital signatures have non-repudiation characteristics. This involves an accurate verification process and strict signature authentication to ensure that the digital signature used was actually made by the correct party.



From the above review, you can see that digital-signature technology offers a much-needed solution for both you and your company. But if your mind is still not made up, a bit more research and study should help you decide whether they are appropriate for you. Make sure that your research is done with no sentimental bias towards wet signatures!


If you are ready to make the move to digital signatures, you can contact a PSrE in Indonesia directly. One of these is PT Indonesia Digital Identity (VIDA), a registered PSrE that offers digital-signature services using the latest technology. VIDA is a certified provider of the highest level of security.


Read: Impact of Digital Signatures on the Future of Business Contracts


VIDA - Verified Identity for All. VIDA provides a trusted digital identity platform.

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