In today’s digital world, how we sign and legitimise documents has evolved tremendously. Gone are the days of printing forms, physically signing them, scanning them, and then going to the Post Office to mail them off.
Instead, electronic signatures, or e-signatures, have entered the picture as an easy and streamlined solution for signing documents quickly and efficiently.
Understanding e-signatures
At its core, an electronic signature is the digital equivalent of a handwritten one. It’s a cryptographic representation of an individual’s identity, showing their intent and willingness to sign a document or agreement.
E-signatures come in many forms, including scanned images of handwritten signatures, typed names, digital signatures generated by certain software, or even biometric signatures such as fingerprints.
The process of signing using an e-signature typically involves following several steps. The first is authentication, where users are required to verify their identity through different means such as passwords, Pins or biometric data.
Next comes document preparation. The document to be signed is prepared electronically, either by uploading a digital file or creating one using specialised software. Following this, the user affixes their e-signature to the document via an e-signing tool. This can mean typing their name or using a mouse or stylus to draw their signature for a more accurate visual representation.
The final step is verification. Once signed, the document is encrypted to prevent tampering or misuse.
Wide range of benefits
The adoption of e-signatures has several compelling benefits. For instance, signing documents the old-fashioned way was an arduous and often inconvenient process. E-signatures, on the other hand, remove the need for physical paperwork, cutting the time spent printing, signing, scanning and mailing documents. This speeds up the signing process, allowing entities to close deals and execute contracts much faster.
Businesses and people can also save money. By reducing paper consumption, printing costs and postage fees, everyone involved can enjoy significant cost savings in the long run.
Then there’s improved accessibility. E-signatures allow us to sign documents from anywhere with an internet connection, making it easy and convenient for remote workers, customers and third parties to transact from anywhere.
In terms of security, despite popular misconceptions, e-signatures are more secure than traditional handwritten signatures. Advanced encryption techniques and authentication protocols guarantee their integrity and authenticity, dramatically reducing the risks of forgery, misuse and tampering.
South African context
In South Africa, the legal framework surrounding e-signatures is governed mainly by the Electronic Communications & Transactions (ECT) Act of 2002.
This legislation recognises the validity of e-signatures, granting them the same legal status as handwritten ones on the condition that a set of criteria are met.
According to the ECT Act, for an e-signature to be considered valid, it must be unique to the signatory and capable of identifying them. Also, it must be logically associated with the electronic document being signed, ensuring that any alterations to the document can be detected.
Finally, it must be reliable, meaning the method used to generate the e-signature must be reliable and appropriate for the intended purpose, ensuring that the signatory’s identity can be verified.
Not all e-signatures are the same
The act also distinguishes between two types of e-signatures.
Firstly, an “electronic signature” (ES) refers to data that is either attached to, included within or logically linked with other data, intending to serve as a signature by the user. This encompasses several forms, such as digital signatures or scanned signatures.
Examples of ES include typing one’s name in electronic format after an e-mail, clicking an “I accept” checkbox on a website, or executing a signature on a tablet using an e-pen or finger.
The “advanced electronic signature” (AES) is a specific category of ES that requires a rigorous process accredited by the South African Accreditation Authority (SAAA). This accreditation is vital for ensuring the genuineness of the signature.
The SAAA only gives accreditation to processes that fulfil several criteria. The AES must be able to identify the individual signing the document accurately, and the signature process must be based on face-to-face verification of the signatory’s identity.
There must be a distinct and singular linkage between the signature and the signatory, and the creation and maintenance of the AES must remain under the exclusive control of the signatory. This type of e-signature must be linked to the electronic record to ensure that any alteration to the signed electronic document can be detected instantly.
The SAAA undertakes stringent evaluations to ensure that any authentication solutions or services meet these criteria before accrediting them as AES, which ensures the integrity and authenticity of electronically signed documents.
South Africa’s legal recognition of e-signatures paved the way for widespread adoption in various sectors, including finance, real estate and legal services. Businesses nationwide are now using e-signatures to streamline their operations, improve efficiency and enhance the customer experience.
A transformative innovation
There’s no question that e-signatures are a transformative innovation that are revolutionising how we sign documents and confirm business transactions. By eliminating the inefficiencies of traditional paper-based processes, they offer a faster, more cost-effective and more secure alternative for signing documents.
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