Wet Signature Vs Electronic Signature- Which is Best For Your Business?

Roadblocks In Document Signing- What is the Underlying Cause?

Getting documents signed and ready for execution is a crucial component of business operations. However, organizations face plenty of hurdles that impede the proper execution of documents. The process of gathering signatures on essential documents can offer substantial issues for firms in today’s rapid business environment. 

These difficulties stem from a variety of issues, such as time-consuming procedures, compliance concerns, logistical limits, dependencies on multiple people and devices, and security hazards. 

Even today, many businesses use traditional wet signatures to sign and execute their contracts. However, despite being a time-tested technique for approval and execution processes, they pose several obstacles that can lead to lengthy project execution times. 

Firms need to use innovative techniques to simplify to counter these roadblocks and create a  successful method to streamline the signature collection process. Electronic signatures address this major concern which businesses across the world are facing. As of 2023, the global digital signature market size is valued at 5.25 billion USD and is estimated to grow to $43.14 billion by 2030.

Electronic signatures are an excellent means for businesses to streamline their document execution process and help them manage agreements smartly. 

What are Wet Signatures?

Wet Signatures are those signatures that are created when one physically signs a document using a writing tool. They are also known as traditional signatures or handwritten signatures and  are distinctive to the signer and act as proof of authentication. The presence of a traditional wet signature on a document indicates the signer’s intent to agree to the document’s contents. 

Traditional signatures are often handwritten, but they can also be created in the form of seals or stamps. Some of the attributes of traditional signatures are:

• Familiarity: Wet ink signatures have been in use for a long time and their concept is familiar among the masses,  which can make many people feel comfortable with the signing process.
• Flexibility: Handwritten signatures can be signed on a range of surfaces and with various writing implements, making them highly versatile.
• Tangibility: Handwritten signatures are physical and apparent, which could provide certain signers and document stakeholders with a stronger sense of security and trust.
• Uniqueness: Each individual’s signature is distinct and is capable of helping identify them.
• Personalization: Traditional signatures give the signing process a more personal touch as they allow signers to use their personalized style while signing a document. 
• Intention: A handwritten signature indicates that the signer has read and comprehended the document’s contents and agrees to be bound by its provisions.

What is an Electronic Signature?

Electronic Signatures are signatures that use electronic means like digital symbols, signatures, or processes to approve a document. In other words, an electronic signature is a digital equivalent of a handwritten signature to indicate the signer’s intent to authenticate the document. 

Electronic signatures are used for multiple purposes and are recognized as a valid and enforceable method of signing across many jurisdictions, including the UAE. Some of the properties of electronic signatures are:

• Verifiable: E-signatures are verifiable, meaning the authenticity and integrity of any e-signed document can be checked and confirmed. 
• Secure and Reliable: Electronic signatures are highly safe and reliable as they use a variety of security mechanisms like access controls, encryption, digital certificates, and audit trails.
• Efficient: E-signatures are a convenient and efficient way of signing documents since they remove the need for physical documents, scanning, printing, and delivering, thus saving time as well as money. 
• Non-Repudiation: Electronic signatures provide non-repudiation, which means that the signer cannot deny signing the document once it has been signed and authenticated.
• Eco-Friendly: Electronic signatures are eco-friendly because they eliminate paper consumption, along with the carbon consumption associated with printing and transporting paper documents.
• Tamper-Evident: E-signatures come with tamper-evidence properties, meaning any illegal attempt to alter the signed document will result in the signature becoming invalid. 
• Internationally Recognized: Electronic signatures are widely accepted and legal in many parts of the world, making them an ideal choice for international transactions.
• Unique Identifier: Electronic signatures employ unique identifiers that belong solely to the signer such as authentication passwords, biometric identification, etc., to help identify the signer. 

Legality of E-Sign in the UAE: An Overview of the Legal Basis of Electronic Signatures

The Electronic Transactions and Trust Services Law, promulgated by Federal Decree-Law No. 46 of 2021, is the principal law governing the usage of digital signatures in the UAE. The Law supersedes the former Federal Law No. 1 of 2006 on e-transactions and e-commerce, which governed the legality of digital signatures in the UAE.

The new law defines the legal framework for electronic signatures and includes provisions to facilitate the use of electronic signatures, documents, and contracts. It governs the validity of electronic documents and enhances the legal value and security of digital signatures. It also establishes licensing standards for trust service providers who are authorized to create, validate, and maintain eSignatures, eSeals, and digital certification.

The digital signature issued by UAE PASS is regarded as a legally binding and enforceable method of authentication and verification. The UAE PASS platform adheres to the legal framework for electronic signatures that has been set up by the law and the UAE PASS digital signature is legally binding and recognized by the UAE government. 

Individuals are allowed to utilize the digital signature to accomplish various transactions such as agreements, contracts, and other procedures for private organizations and government entities in the UAE. Digital signatures will also make it easier to issue permissions, licenses, or approvals in the form of electronic records. 

According to the TDRA, a digital signature will have the same legal value as that of a handwritten signature. Digital signatures will take away the necessity for personal attendance in institutions, banks, and courts. 

Wet Signatures vs. Electronic Signatures: A Comparative Analysis

Wet signatures involve physically signing a document with a pen or other writing instrument, while electronic signatures capture the signature and apply it to the document using digital technology. Both these techniques serve the same objective of signing an agreement for approval, but there are some key differences that distinguish these signing procedures from one another. 

Wet Signatures Vs. E-Signatures – Which Signature Is Best For Your Business?

As organizations progressively go digital, the conventional way of signing documents with ink and paper is becoming obsolete. While electronic signatures have grown in popularity due to their convenience and efficiency, wet signatures retain legal validity and may be required or preferred in certain circumstances.

However, electronic signatures provide a more efficient, convenient, and cost-effective method of remotely signing documents. Businesses must analyze each type of signature to select the one that best meets their specific needs and objectives.

As organizations worldwide are making strides toward offering a digital customer experience, the use of e-signatures helps enhance the efficiency of the process. Here’s why businesses should make the switch to electronic signatures:

• Electronic signature workflows increase document security: Electronic signatures ensure better document security in comparison to their handwritten counterparts. This is because e-signatures include information about who signed the document, and when it was signed, and do not allow access to unauthorized individuals. 

Unlike paper documents, electronic signatures are not subject to misuse and damage. Also, it is more difficult to counterfeit documents signed electronically. 

• E-signing enhances workflow efficiency: Using an electronic signature system automates document workflow which accelerates document execution and boosts process productivity. 

E-signatures allow businesses to create efficient approval workflows that not only simplify compliance but also save time spent on collecting signatures from multiple stakeholders. E-signatures cater to faster document processing time by reducing document turnaround times by several hours to even days. 

• Electronic signatures are cost-effective in the long run: The amount of money companies spend on paper, ink, and other document execution-related expenses quickly add up when contracts need to be signed and executed in bulk almost every day. 

Choosing electronic signatures helps businesses avoid spending on excessive paper, ink, printing, xeroxing, and other costs that accompany wet sign-based processes. Additionally, using e-signature software allows for secure digital storage of signed documents, eliminating the need for a physical storage space. 

• E-signatures minimize errors & accelerate document processing: Business documents are legally binding, thus all the content mentioned within them must be presented accurately. However, missing out signing on even one or two pages can make a document invalid, which businesses can avoid by using an electronic signature solution. 

Using e-sign allows businesses to set up mandatory signature fields which makes it easier for signers to recognize areas that require their signatures, thus leaving less room for error and eliminating document processing delays. 

• E-sign workflows offer an improved customer experience: Customers want their interactions to be quick and convenient and electronic signatures remove the need for businesses to coordinate meeting locations and times with customers to get documents signed. During in-person transactions, the customer barely reads what he is going to sign since he will be under time constraint to complete the meeting. 

Offering them a digital signature process flow helps them sign agreements with just a tap of a finger, from anywhere in the world and from almost any device. The customer is also given more time to review and comprehend what he is signing, when businesses use an electronic signature workflow.

• Electronic signatures make compliance easier: E-signatures act as a security feature that strengthens document integrity. In addition, electronic signatures ensure forgery or document misuse does not take place, helping businesses stay compliant with industry regulations and data protection laws. 

Moreover, e-signatures are auditable, meaning they are backed by audit trails that contribute to assuring the legitimacy of the signatures and documents in an instance where the validity of a signature is questioned. 

• And lastly, electronic signatures are eco-friendly: By changing the way documents are signed, shared and retained, electronic signatures have drastically decreased businesses’ reliance on traditional, outdated ways of transacting.  

By providing a quick and simple digital signing process, eSignature eliminates the need to print, fax, scan, send, and maintain paper documents. Additionally, when documents are signed and stored digitally, the usage of tonnes of paper and ink can be saved, which helps businesses reduce their carbon footprint. 

How Do Electronic Signatures Work?

Electronic signatures are proving to be a game changer in terms of streamlining document workflows and increasing business efficiency. But how do electronic signatures work exactly? Continue reading to find out how.

1. Document Preparation: Draft the document that needs to be e-signed either by creating the document from scratch or converting a physical document into a digital one.
2. Inviting Stakeholders: The next step is to provide details like the names, email IDs, and contact numbers of the parties involved and sending out e-invites for them to sign the prepared document.
3. Signer Authentication: The identity of the signer must be verified to ensure the legitimacy and integrity of the signature. This can be accomplished via a variety of authentication mechanisms such as one-time passwords, biometric data verification, and so on.
4. Signature Creation: When the signer has been authenticated, the electronic signature is formed on the document. The electronic signature thus created is unique to the signer and is linked to the document.
5. Document Distribution: After e-signatures are obtained from stakeholders, the document can be sent to intended recipients. An audit document providing a detailed record of the signing process, including user identities, timestamps, and other relevant information is also attached to the e-signed document for transparency and auditability.
6. Document Storage: To maintain the document’s integrity, accessibility, and long-term preservation, it is downloaded and stored securely. This includes preserving the document’s original format, preserving the integrity of the signature, and safeguarding it from unauthorized access or tampering.

Electronic Signature Process

SignDesk- A Secure Electronic Signature Solution For Your Business

SignDesk is a global document automation solution provider which offers smart solutions that help enhance business processes and improve productivity. Step up your wet signature workflows and use our electronic signature solution, Ink.It, which offers advanced and easy-to-use e-signature workflows tailored to streamline document signing procedures at the corporate level. 

Choose from OTP-based electronic signature workflows, video-based evidence creation processes, or UAE Pass-based e-signature solutions to create seamless document signing workflows for your customers and clients.

Use SignDesk’s digital signatures to sign

• Sales Purchase Agreements
• Master Service Agreements
• Employment Letters
• Loan Document Execution
• In-House Document Workflows, and many more

Get in touch with our product specialists to integrate SignDesk into your workflows and simplify your document execution process. 

Book a Free Demo!