Regulations are rife in today’s banking industry – but with the help of electronic evidence, a bank can more easily comply and prove compliance. But how does a bank go about collecting all that evidence, particularly in a mobile environment? It’s not as complicated as you might think, thanks to enterprise-class e-signature solutions designed specifically for mobile customer transactions.

Comprehensive electronic evidence helps banks defend against disputes and potentially stay out of court, and there are three important components to electronic evidence in mobile banking processes:

• Document-level audit trails
• Process-level evidence
• Mobile evidence

Document-level audit trails are a good start as they help a bank produce a reliable record of WHAT was signed and demonstrate that a record hasn’t been tampered with since signing.  Process evidence supplements document-level evidence by capturing a record of HOW the customer completed the transaction, proving how signer intent was established and enabling the reproduction of the appearance and order of all of the web screens, documents and legal disclosures presented to the signer, including time spent on each page and all actions taken during the review and signing process.

When a transaction takes place on a mobile device, there is the opportunity to collect additional mobile evidence. An e-signature solution should enable you to leverage the native capabilities of a tablet such as an iPad, to collect voice, images, video or even GPS coordinates during the e-sign process to collect process-level electronic evidence. For example, a photo of a customer’s ID could be uploaded to the transaction as part of the authentication process when opening a new brokerage account, or a voice recording of a customer reading the terms and conditions as they e-sign could be used to prove that it was the customer who signed (and not the financial advisor handling their application).

You can also authenticate customers using SMS text message. SMS can be used to send a unique PIN to the customer’s mobile phone as a text message. The customer would then be asked to enter this one-time password before they electronically sign. Just the fact that the customer has responded to a message that was sent to their cell phone links them to the transaction and helps to create an audit trail about their identity.

Regardless of the approach you choose, your e-signature software should allow you to embed customer authentication information and other types of document-centric evidence such as the mobile e-signature block image and encryption hash into the e-signed document’s audit trail. This strengthens the evidence around who signed what, and makes it easier to access all the details of the transaction if ever your contract is challenged in court.

Do you work for a bank or financial services company and are you interested in learning more about electronic signatures for mobile banking? Join more than 250 attendees from banks of all sizes in North America and hear how they’ve taken their processes electronic and the customer satisfaction, cost and time savings they’ve achieved. Register now.

The points mentioned in this post come from a larger article on the top 10 enterprise mobile e-signature requirements. If you’d like to read more about these, download the article here.

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