Research on Digital Signatures in Legal Space Highlights Automation, Data Security and Compliance

Global News

08
Jul
2014

Editor

ARX, the global leader in digital signature solutions, today announced the results of a recent ALM survey focused on digital signature use and user behavior among corporate legal departments, law firms and government agencies.

The study, “Signature-Dependent Processes & Usage of Digital Signatures,” covers current usage and readiness to use digital signatures; efficiency impact of using digital versus physical signatures; factors of concern when considering a digital signature solution; and departments most interested in and most reluctant to use digital signatures.

Specific survey results include:

• 40% of survey respondents already use digital signatures and another 39% are either ‘planning to implement in the next 12 months’ or ‘see the need’ to implement digital signatures
• Respondents report that nearly half of all documents are printed for the sole purpose of adding signatures. 34% of all respondents indicated that 3/4 or more of documents are printed for the sole purpose of adding signatures
• Overall, an average of 1.24 days is added to paper-based signature processes. Nearly a quarter of respondents indicated the signature process added 2-5 days to their processes
• When asked what factors are most important in a digital signature solution, the top 8 answers cited by respondents included security and integrity of sensitive data (87%); ease of use (86%); ease of implementation (81%); acceptance by the courts (78%); control over user management/governance policies (70%); pricing (69%); integration with existing DMS (68%); and vendor reputation (60%)
• 62% cited increased efficiency (saving time on printing, etc.) as the biggest benefit of digital signatures; 50% cited shortened turnaround time on signature approvals; 39% prioritized compliance with legal and audit requirements; and 39% mentioned ‘establishing a paperless office/full digital automation’
• Top concerns regarding digital signatures include data security and integrity, control and location of sensitive data (64%); acceptance/legality of digital signatures (56%); and compliance with regulations/audit requirements (50%)
• Corporate legal departments are the most interested in implementing digital signatures (41%), followed by law firm IT (25%), legal marketing (25%) and individual practice groups (20%)
• Corporate legal departments are also the most reluctant to implement digital signatures (28%), followed by the C-Suite (22%) and Finance (20%).

Click here to view an infographic of the survey results.

“In today’s legal environment, law firms and in-house legal departments are required to update their business practices in order to remain compliant and address rapidly evolving risk management concerns,” stated John Marchioni, ARX General Manager. “The survey results show that legal professionals are embracing automation technologies such as digital signatures that can shorten process times and increase efficiency while adhering to compliance and security challenges.”

Marchioni adds: “The survey reveals the ambivalence between Legal’s desire to embrace digital signatures and the reluctance to do so based on concerns around data security and legality. This trend shows us that we need to continually educate and inform our markets on the advantages of electronic and digital signatures. For example, CoSign is a solution designed to address the prevailing security needs of enterprises globally, especially those located in the EU and regions that look to the EU for guidance.”