Electronic documents are a mundane yet integral part of the financial industry, as they improve operational efficiency, reduce costs and save paper for banks and credit unions. Members also enjoy the convenience they offer, as they are able to sign disclosures and send the document back from their mobile phone or computer. Electronic Signing is a key feature allowing members to agree to the terms of documents without a trip into their credit union's branch. Electronic signatures carry the same legal weight as paper documents thanks to the Electronic Signatures in Global and National Commerce Act (ESIGN), which went into effect on October 1, 2000. For this reason, eSignature is the preferred method for both members and CUs alike for its convenience. However, there are particular rules and regulations regarding ESIGN to which credit unions must abide. Here are important compliance guidelines to keep in mind when implementing eSignature options.

Your member numbers are up. Your product portfolio has evolved to meet the demands of the financial industry. You invested in the technology that millennials expect, and have been active on a variety of media channels to attract new and younger members. While all signs are pointing to a banner year for your credit union, your loan portfolio is lagging. Why aren't your new members borrowing from your credit union? Let's take look at possible areas where your credit union lending solutions may need some minor tweaks, or possibly a complete overhaul:

Lunch time arrives and it's time to heat up your leftover chicken and rice from last night's dinner. You make your way to the break room and throw your tupperware in the microwave and two minutes later are enjoying the food heated to the proper temperature. Most people don't sit there and contemplate the inner workings of the microwave and how Percy Spencer leveraged radar technology developed during World War II to invent it. They simply care about warm food. Similarly, members don't think in terms of core technology or credit union software, they are only concerned about the convenience and overall experience they receive. It's only when your technology fails to provide what your members need that it becomes an issue for them. So, ask yourself, are credit unions in the technology business or the financial services business?

Going paperless is the ultimate time saver. It allows MSRs to easily access documents and extends the efficiency to members. Remote deposit capture is a convenience that was quickly embraced in the paperless world, saving time and money by eliminating trips to a branch or ATM to deposit checks. When it comes to modern loan processing, the convenience of e-signatures is what your members will come to expect from your credit union. As CU executives know, implementing e-signatures requires investment of both time and money. However, the Return on Investment (ROI) from paperless is very tangible. Here are 4 areas where the ROI of paperless lending is quickly realized:

There is no question that electronic documents have improved credit union efficiency, making every aspect of document management better. This includes increasing convenience for members, improving document retention strategies and providing enhanced security. With the correct strategies, electronic documents also enable credit union employees to have the most up-to-date information at all times on every member account. However, with the reality of increasing cybersecurity threats, there is a misconception: going paperless is somehow less secure than paper itself. Consider these 6 ways a paperless system is more secure:

For over 500 million people, document management, storage and accessibility has become an extremely easy process that is part of their everyday work (and personal) life. That is because those 500 million people use Dropbox, which to them is just a folder on their PC desktop that allows them to save files to the cloud using drag and drop. These files can then be sent to others and synchronize across all devices. 1.2 billion files are saved using Dropbox every 24 hours.¹ There is no doubt that businesses and individuals have found their needs for accessibility, collaboration and sharing filled with this data storage tool. What can your credit union learn from the success of Dropbox when it comes to your own document management? 

In a world where technology ensures immediate delivery of nearly everything, paperless documents and e-Signatures are quickly becoming the new norm. e-Signatures have recently experienced significant growth in adoption rates among financial institutions. Members have a hard time waiting for Amazon's two-day shipping, let alone having to make a special trip to the credit union to sign a document. As your members become more reliant upon technology to simplify their lives, they will be demanding more of your services and e-Signature is one way to ensure that you are meeting their needs. Here are 5 reasons why your credit union needs to offer e-signatures:

The Band-Aid market took a hit when electronic document management entered the picture. It wasn’t too long ago (and in some cases may still be a reality) that a back room, or even small closet, was full of filing cabinets. By day, summer interns would be confined to those four walls. And by night, they would be nursing the paper cuts. Going paperless shouldn’t mean that unorganized files simply moved from a messy physical desktop into a messy computer desktop... implementing a few tips, your credit union document management strategy can be organized and efficient.

"The dog ate my homework."

"My roommate stole my report."

"The papers must have fallen out of my laptop bag."

"I lost the receipt... can I still return this?"

All of our life, we have been coming up with excuses for teachers, professors, and bosses as to why we have shown up empty-handed when an assignment was due. However, advances in modern technology have made these excuses meaningless, as more and more paperless options are present everywhere we look. Our 3rd graders are emailing teachers their homework assignments, a grad student's thesis is uploaded electronically to a university server, monthly reports are transferred within drop box folders, and a store credit card retains our shopping history. So isn't it about time your credit union loses the paper and embraces the efficiency of paperless?