Another banking product that can also benefit hugely from digital signatures is investment management, a wealth management product that involves banking.
Digital signatures are used in wealth management to streamline the sales process, which is traditionally time-consuming, involving repeated meetings and suffering from a high error rate due to large amounts of paperwork and other physical risks.
What is a Digital Signature?
A digital signature consists of electronic information that is attached, linked, or related to other electronic information that is used as a means of verification and authentication.
A digital signature differs from a scanned wet signature that is "stuck" to the electronic document.
Function of Digital Signatures
Digital signatures not only guarantee the authenticity of documents so that it is possible to validate documents, but also prove that a document is legal. Cryptographic systems in digital signatures are provided by electronic certificates.
Legal Power of Digital Signatures
Many countries now have separate rules governing the procedure for using digital signatures. Indonesia itself has several regulations governing the legality and validity of digital signatures.
The legal power of digital signatures is regulated under.
Article 11 of Law No. 11 of 2008 concerning Information and Electronic Transactions (ITE)
Government Regulation Number 71 of 2019 concerning the Implementation of Electronic Systems and Transactions
Article 1 paragraph 5-12 of Law Number 19 of 2016 concerning Information and Electronic Transactions
Benefits of Digital Signatures for Investment Management
DIgital signatures are now being increasingly used to prove someone’s identity. Many industries rely on security aspects such as banking and other financial service providers who use digital signatures as a way to improve service quality.
The conventional wealth management process requires face-to-face meetings. This not only takes longer, but also has the potential to increase the spread of the Covid-19 virus during a pandemic.
Digital signatures can be a solution for handling digital transactions and interactions involved in wealth management. Files and documents are paperless, thus saving time and costs because customers can sign approvals and authorizations easily and practically, anywhere and anytime.
According to a report by Bank Systems & Technology, wealth management documentation and filing using conventional methods takes up to 80,000 hours per year. This increases the risk of errors such as incomplete signatures or invalid data, meaning the data collection process has to be re-done, with the potential to cause huge losses for banks. All this can be avoided by using digital signatures.
This is in line with the policies of the OJK as regulated in Article 9 of POJK Number 26/POJK.01/2019 concerning Electronic Licensing in the Financial Services Sector, which is aimed at improving the efficiency and effectiveness of the licensing process at OJK, especially for the licensing of Investment Manager Representatives (WMI) and Mutual Funds Selling Agent Representatives (WAPERD). The new policy mandates the use of digital signatures for all files instead of ‘wet’ signatures.
VIDA Sign, Your Secure Digital Signature Solution
VIDA Sign is a digital-signature application issued by VIDA that facilitates the safe and convenient use of digital signatures for customers.
Digital-signature products issued by VIDA have the same legal and binding force as ‘wet’ signatures that apply to physical documents, using electronic certificates as a means of signing digital documents.
VIDA Sign is used to perform digital signatures on electronic documents as regulated in PP 71/2019 concerning Electronic Systems and Transactions. All electronic documents and transactions must be signed with an electronic certificate issued by the PSrE.
When you use a VIDA Sign, there is a biometric check with activation detection prior to signing to avoid the risk of identity fraud. VIDA's technology alone is able to verify and authenticate more than thousands of identities every day when web and mobile transactions occur in real-time.
That way, the process of signing documents electronically can be carried out safely and comfortably.
How to Use VIDA Sign
Open the Vida Sign app
Tap LOGIN & SHARE
Tap the page section
Select the signature option
Complete the activation verification.
Easy, right? Digital signatures offer many new business opportunities for the banking industry. Entrust the digital signing of documents to VIDA Sign. To discuss your needs further, contact our team via this link today.
Read: Digital Signatures Support Productivity When Back at the Office