Digital Transaction Management (DTM) is the management of document-based transactions electronically via the cloud. It has revolutionized the way businesses operate. DTM helped remove inefficiencies caused in transactions,including document completion, data processing. Transactions now have fewer delays, are easier to perform, and overall more convenient.
Breaking it Down
Globally, every organization has some form of “document signing” ceremony for all kinds of transactions. These transactions can range from loans to real estate transactions to legal contracts etc.
The abundance of these ceremonies in every organization paved the way for a digital solution, Digital Transaction Management. Moreover, The variety of documents within consideration for inclusion in the process is huge. This led to the birth of the xDTM Standard, which governs the DTM body.
xDTM is in effect since 2016, as a result of input from major stakeholders in the DTM market. It is now a standard criterion for the management of Digital Transactions. The creation of xDTM enables efforts to make DTM viable to the trust of the people so they can do secure online data storage and transmission.
Benefits of Digital Transaction Management
There are various ways that Digital Transactions are benefiting businesses all around the globe. Here are some ways that DTM can make your business more efficient:
Transactions are Now Accessible and Secure
As soon as you reach the last stage of closing business-to-business deals you face unexpected delays tying up transactions. Printing, faxing, scanning, and forwarding documents, hinder the business processes of a company. Tying Up shouldn’t be so hard. Security risks also pose serious threats.
Firstly, following protocols set within the XDTM standards, data is immediately available even at a peak flow time and is accessible around the world. As a result of this protocol, this reduces the hassle you may have been facing because of people and data availability.
Secondly, XDTM Standard ensures the highest possible level of security using technologies that are at the forefront of the digital revolution in data storage. An expert forecast revealed the number of breaches will increase every year, including both small and big scale breaches. That is why security is the forefront focus in Digital Transaction Management.
Automation and Compliance
Obtain Completed documents within a matter of minutes. Now you no longer need to wait for people to sign documents causing delays. xDTM compatible systems ensure that you can access documents immediately.
With newer systems, you can now set up immediate completion schedules for you and your colleagues to ensure full compliance. You can keep track of documents and follow the process from anywhere may it be your office or home because business never stops. With DTM, companies have to comply with appropriate laws and regulations in their jurisdiction.
Detailed Reporting and Enhanced Privacy
Some documents require multiple people to sign and complete them. Digital Transaction Management makes following up easier than it ever was. Tools now have in-built dashboards to keep track of what process yet remains to be completed. Staying in the loop is now easier.
Unauthorized access can be minimized by assigning customized levels of access to documents within the company. With DTM, each individual or an organization can choose to selectively reveal the information that they think is necessary to the other party.
Coverage Across Various Departments
Sales platforms today are looking forward to having DTM embedded in their systems. Customers can directly perform transactions online and speed up the process for both themselves and the company. Because of the benefits like privacy and accessibility, it is now the top choice for startup sales platforms in the market.
Each department has different documents that need to be completed to make the organization function properly and complete major business transactions and deals as a whole. Using Digital Transaction Management businesses can now automate all departments. Some of the Departments that can be automated are:
Some documents that the Sales department can use it for are compensation agreements, referral agreements, new customer signups, and terms and conditions agreements.
Human resource is the backbone of any organization. HR officials can use it for new hire paperwork, nondisclosure agreements, and payroll forms.
The finance department needs regular documentation for monthly audits and reports for every organization. They can use DTM for invoice processing, asset transfer, and retirement accounts.
The IT department can use it for access management and maintenance authorization.
Legal teams can automate their process by using it for contract management and internal compliance.
Finally, before signing any new clients or products the Procurement Staff can use it for purchase orders and statements of work.
E-Signature is a legal way to sign documents or forms virtually, thereby replacing written signatures. They are valid, legal and are applicable in every industrialized country in the world.
The word E-Signature got coined in 2000 with the E-SIGN 200 act which enabled people to have important documents signed in no time. It is an extremely cost-effective option because of the reduced costs of shipping documents to the required personnel. E-Signature has made the signature process increasingly efficient, with tools now offering receipts for e-sign documents.
On 30th June 2000, Bill Clinton signed the e-signature in the Global and National E-Signatures Act without using a pen. He did so electronically and brought about a revolution in the name of the ESIGN Act.
Under this act, electronic signatures are granted the same states legally as a written signature. However, simply placing a symbol does not make a contract legally applicable. There are certain requirements that make any e-signed document legally applicable.
The ESIGN Act covers:
- Firstly, Most documents that require handwritten signatures on documents.
- Secondly, Documents to be used as evidence in the court of law
- Thirdly, it ensures the enforcement of the validity of a legally signed document in case it is being designed just because it is electronically signed.
Key to Meeting Upcoming Industry Requirements
E-signature is an opportunity for regulators in various industries and departments to make specific rules for the use of e-signature on documents. Every federal and regulatory agency has the opportunity to read and apply the bylaws pertaining to their industries. E-signatures most often satisfy the regulatory compliance in your applicable industry by providing the following: Authentication, Authorization, Audit, and Security.
The cause for the generation of a document determines the applicability of the ESIGN Act. If the document is created for business, commercial, or consumer transactions, the act supersedes any company’s preexisting requirements for a record to be kept on paper. On the other hand, if the document has been created for governmental requirements not related to the prior criteria, the ESIGN Act may not apply.
Remote Online Notarization
Remote Online Notarization (RON) is the audio/visual technology to complete a notarization act when the principal or the notary public is not present at the same physical location as each other.
As more and more employees are now working remotely and will continue to do so after the pandemic RON has never been more useful. With Remote Online Notarization, your company’s workflow can be made even more efficient.
On March 18, 2020, Senate Bill 3533, the Securing and Enabling Commerce Using Remote and Electronic Notarization Act of 2020 (the “SECURE Act”), is the bipartisan legislation to authorize and establish minimum standards. These standards cover all electronic and remote notarizations that occur in or affect interstate commerce.
Each of the 50 states is expected to temporarily pass revised restrictions for RON in the current situation. This allows individuals to remotely conduct business. Most tools are now launching combined audio-video conferencing technologies in specific states.
Currently, 26 states are enacting some form of remote online notarization (RON) law: Alaska, Arizona, Florida, Idaho, Indiana, Iowa, Kentucky, Maryland, Michigan, Minnesota, Montana, Nebraska, Nevada, North Dakota, Ohio, Oklahoma, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington and Wisconsin, Louisiana and Colorado.
How it Works?
Scan and upload your documents on the tools that you choose to use first. Without a doubt, all tools generally support everything from minor consent to travels forms to power of attorney. It supports other documents as well, as soon as you upload the document you move on to the next step.
The next step is verifying your identity. Every Online Notarization tool has its own way of verifying your identity. Typically, your license is used and you are asked to answer questions for knowledge-based authentication that verifies your identity.
Usually, you can connect to a notary public instantly, or as soon as one is online. You can connect with a notary online whenever you’re available through your mobile or laptop. Most tools offer the option to record these conferencing sessions and add witnesses to the notarization ceremony.
Market Trends Increasing Demand for Digital Transaction Management in BFSI Industry
Banking, Finance Services, and Insurance companies are now moving towards Digital Transaction Management.
Banks and Financial services are now more considerate of changing customer needs. This strong preference leads to the steady flow of the volume of transactions through mediums like e-wallets etc., with a growth opportunity in Digital Transaction Management.
BFSI Industry is adopting traditional printing, scanning, and faxing to make overnight processing and completion of documents a possibility. Essentially, bank employees use these documents in the account of creation and traditional bank transactions.
The banking and financial institutions are now rapidly moving toward digitization to secure more customers and reach more potential consumers. Today, customers demand user-friendly experiences, easy to understand products, transparency, and 24/7 access to products and information.
Fragmentation and consolidation is a problem that the digitial transaction management market does not face. It is a diverse market with strong competitors leading the market. Each state passes new and legislation concerning DTM every year. Every vendor consistently provides innovative solutions. Companies cater to all documents that customers need using these technologies.
Source: Formsio.com Tool Layout
Along with the already leading competitors in the market, new startups are also entering the market. Moreover, Startups are now developing more efficient and affordable options to target local markets in their respective states. New options are just as viable and trusted as standard solutions in the market.
Indeed, since its advent, Digital Transaction Management has continued to grow at a rapid rate. Additionally, with the pandemic going on, now more than ever people are in need of remote working opportunities. Technologies like e-signatures and remote online notarization are the key to keep businesses going. In addition to that, the use of DTM eliminates delays and the element of human errors and makes the business workflow even more effective, making way for new opportunities to open because of all the benefits it has to offer.
Novateus is a custom software development company that deals with the development of innovative solutions. We have years of experience working on Digital Transaction Management solutions. If you need any help understanding anything or have a query please leave a query or contact us.