What is eSign in Banking?


eSign in banking involves the use of technology to collect and embed a customer’s digital signature into documents, such as forms that are needed to establish a deposit account or consummate a loan.

Collecting, Embedding, & Storing eSigned Customer Documents

Typically, banks use document preparation systems to generate the necessary forms and documentation that require customer signatures. Integrating an eSign product makes it possible to electronically collect a customer’s signature without printing paper versions of the documents and forms.

Financial institutions should work with their compliance teams to decide which, if any, documents will require a wet signature instead of being eSigned. For example, many banks require that promissory notes are still signed in person, but some allow deposit account documents to be signed electronically.

After being eSigned, customer and account documents should be managed appropriately in accordance with the bank’s document policies. This may involve the use of a document imaging and tracking system, such as AccuAccount. Integrating an imaging system with your eSign and doc prep system can offer additional efficiencies.

Benefits: eSign in Banking

Financial institutions that have adopted eSign in banking see many potential rewards, including:

  • Efficiency: eSign reduces—or in some cases eliminates—the need to print, route, scan, store, and shred paper documents. Additionally, digital documents usually appear in a bank’s imaging system overnight or sooner. Once imported, the imaging system may then be able to automatically attach the eSigned documents to the correct customer or account record.
  • Convenience: eSign makes signing easier for loan operations employees, lenders, and the customer as well.
  • Quality control: When properly configured, an eSign workflow should not permit a signing session to end until all necessary signatures are obtained, ensuring fully-executed documents and reducing risk of oversights.

Account Management Resources

For more information about deposit and loan account management, be sure to check out our extensive resource library with free spreadsheets, whitepapers, and ebooks.

Browse our banking definitions page for more terminology.

Free Downloads

Bank auditor who is sitting at a desk and reviewing financial statements

Banks Audit & Exam Prep Study

[Study] Banks Audit & Exam Prep Learn how 187 other community bankers manage audit and exam prep. What’s Covered in this Summary Report? AccuSystems recently conducted a survey of 187 banking professionals, representing over $70 billion in combined assets at

Download for Free »
Desk that contains a laptop with the TicklerTrax spreadsheet

TicklerTrax Exception Spreadsheet

TicklerTrax™ Exception Spreadsheet Downloaded 1,000+ Times Looking for a free spreadsheet to track your financial institution’s exceptions? TicklerTrax might be the perfect tool for you! We’ve taken some of the basic logic from our top-rated document tracking system and boiled it

Download for Free »
Banker's desk that contains a stack of documents, a computer, and smartphone

eBook: Compliance & Bank Document Management

[eBook] Compliance & Bank Document Management Compliance is a tricky subject – especially when your financial institution is reliant on paper documents and manual tickler systems. In this free eBook, published by technology company, AccuSystems, you’ll encounter three compliance-related situations

Download for Free »

Related Articles