A panel consisting of the certification authority for digital signatures, a top bank and a technology provider discuss the advancements in the ecosystem for digital signatures and the efficiencies to be gained from their wider use.
Digital signatures, a crucial piece of the digitisation ecosystem have gained faster traction since the pandemic’s outbreak. Besides the convenience and efficiency, digital signatures are also safer and more versatile than using a pen (a wet signature) due to recent developments in technology.
Often digital signatures are confused with scanned signatures placed on an electronic document. While a scanned signature is a type of electronic signature, a digital signature is quite different and far more secure. A person does not need to sign to place a digital signature on a document, instead, they will enter an authentication code to digitally place their signature. Once placed, a digital signature is permanently linked to a Certification Service Provider (CSP), the authority that validated the credentials and set up the digital signature for a person, in the first place.
In Sri Lanka LankaSign, a unit of LankaPay is the first Certification Service Provider (CSP) where the annual cost of a digital signature is just 2,000 rupees. Recent technology has made it possible for a smartphone’s biometric or passcode identification to be used to place a digital signature, making the process seamless.
In a panel Channa de Silva, Chief Executive of LankaPay who operates LankaSign, the only authorised Certification Service Provider in Sri Lanka for digital signatures, Sanath Manatunge, Chief Executive of Commercial Bank of Ceylon, Sri Lanka’s largest private sector bank, and Chamara Rupasinghe, Chief Executive of Authnex, discussed the deployment, adoption and opportunities for digital signatures.
Can you explain what a digital signature is?
de Silva: A digital signature binds the signee to the signature through technology, cementing its credibility. Once a signature is placed, this technology ensures that the signee’s identity is attached to that signature. When it is sent to the recipient electronically, the recipient can click on the signature to confirm who placed that signature on the document. It is a simple process; you don’t have to be tech-savvy.
How do you believe digital signatures will improve the banking system?
Manatunge: Modern banks build their services around customer requirements. Banks are compelled to use documentation in almost every aspect, even when they relate to digital banking processes; which can hinder a customer that desires an uninterrupted digital experience. By implementing digital signatures, customers and the bank benefit from the increased productivity and convenience of a truly seamless digital platform.
Can this technology remove entirely the need for customers to sign physical documents?
Manatunge: Definitely. Although the new generation appreciates the convenience of digital platforms, integrating all parties is necessary to make this work. Digital signature service providers, regulators and banks can enable an ecosystem mature enough to accommodate the customer journey. The question is whether the ecosystem is ready for this transformation.
Digital signature service providers, regulators and banks can enable an ecosystem mature enough to accommodate the customer journey. The question is whether the ecosystem is ready for this transformation.
When applying for a bank loan or credit card, we often have to sign and initial each page of the documents. Can a digital signature replace all that?
Manatunge: This is where the ecosystem matters. The banks have implemented digital signatures, but are the other institutions, like for instance the land registry or the judiciary ready? They must all join the ecosystem. We have to connect all the dots and involve all parties to make this a success.
De Silva: Initialling legal documents is done to prevent them from being tampered with. This risk is overcome by a digital signature as a document can be ‘locked’ to prevent any tampering after a digital signature is placed taking away the need to initial each page.
Manatunge: If someone edits a digitally signed document then the authenticity is immediately lost. A recipient of the document can clearly observe that the document has lost its authenticity.
How does your company contribute to this ecosystem?
Rupasinghe: We are a technology provider, and we have developed a platform which bridges the gap, allowing digital signature certificates issued by LankaSign to be securely stored and applied by a user to any digital document via a smart mobile device.
What is the role of a CSP in digital signatures?
de Silva: Similar to having a Justice of Peace authenticate a government document, a Certification Service Provider (CSP), LankaSign in this case, will fulfil a similar role through technology. A CSP guarantees the digital signature is of the person to whom it is claimed to belong.
How does Authnex fit into the ecosystem?
Rupasinghe: Once a certificate is created, it has to be stored in a secure location with only the signatory able to access it. Once a certificate is issued by the CSP, we store it in a secure location. That is our role. We help foster trust in the system, which will encourage people to adopt the technology faster.
How do I access my certificate? Do I have to log into a website to take it out? Is there an app I can use? How does it work?
Rupasinghe: Before, the certificate existed in a secure environment which we call HSMs (Hardware Security Modules) such as a USB token or smart card, but the previous system didn’t support mobile devices.
Now everyone carries a smartphone, which has biometrics and passwords built into it, which is why we have created a more convenient system that uses mobile devices. If a document is pending signature, it’s notified to the user and all that’s needed is for the user to enter a PIN or use the biometrics on the smartphone to approve it. It’s seamless for the user.
Commercial Bank is the first Sri Lankan bank to implement digital signatures across the board, what have you observed so far in terms of efficiency?
Manatunge: We have a digital roadmap to convert the customer journey to digital. There are several components to this and digital signatures were a missing piece until LankaSign was launched. This has helped us create a true digital journey leading to greater efficiency. It benefits corporate entities the most.
Procedures that otherwise would have taken days can be completed in a matter of minutes using the digital signatures of LankaSign. We can create backups of all documents saved on different levels.
Can a person’s signature be recognized even if they aren’t a customer of the bank?
de Silva: Yes, as long as the person is registered with LankaSign, even non-customers can deal with the banks. When a person clicks on a signature, it connects to the certification authority and verifies whether the signature is still valid and who it belongs to.
Is the technology truly available today?
Manatunge: Absolutely, but the adoption is still limited because people don’t fully understand the benefit of this system. That mindset has to change.
de Silva: Payments can be made digitally, but the document flow that leads to the payment, from the purchase order onwards is still manual. For a seamless customer journey, you must automate the document flow as well.
de Silva and Manatunge are talking about a seamless experience. How does Authnex contribute to creating this?
Rupasinghe: We fit into the equation in two ways. We’ve created a well-integrated platform for certificates from the CSP to seamlessly flow into the backend application, for instance, a bank.
We have also created our platform for signing which is built for SMEs who may not be able to develop their own systems. By enrolling in our platform, they can use it for uploading, signing and delivering documents.
Someone might get the impression this could be a bit overwhelming for an SME. Is that true?
Rupasinghe: It should be the exact opposite. Being an SME ourselves, we’ve found using digitally signed documents to be very convenient. We save paper, the cost of transportation and travel.
Should a company have a cloud solution to store its documents?
Rupasinghe: For an SME a cloud system might be the most appropriate. When it comes to storing the documents, the system will manage this. You can also download the documents and maintain your own repository.
de Silva: Once you issue a digital signature, the document is with the customer. Additionally, if there are multiple signatories to the same document, a document management system will be required that automatically recognizes who should sign next and will route it accordingly.
How do you expect this technology will impact the market?
Manatunge: Even with the requirement of a physical device to authenticate (place) a digital signature, corporates recognised the value of this technology and adopted it. Early adoption of new technology is always slow, but if it is promoted among SMEs and the wider business community, I’m confident that the uptake rate will increase rapidly.
This technology is necessary for us to be relevant in the global sphere. It’s likely that in the future, it will be essential to conduct business internationally.
Being a new, advanced piece of technology, many might worry about the cost it might entail. How expensive is it?
de Silva: It only costs Rs 2,000 a year for an individual or an entity from the private sector and only Rs 500 per person for a government institution. It covers the unlimited use of this digital signature and can be used to sign all types of documents for any entity, provided the receiver accepts a digital signature.
This has been a wonderfully enlightening conversation. Any closing thoughts?
Manatunge: We need these digital initiatives to stay relevant in the future. Digital solutions can help create transparent and fair financial inclusion down to the grassroots. Digitalization will benefit everybody, not only banks and companies. For a country like ours that hasn’t grown much, the next phase of growth must include these new technologies.
de Silva: The technology we offer is convenient, affordable and cost-effective to corporates and individuals.
Rupasinghe: We need more adoption to help users enjoy a seamless customer journey. It is complex, but without change on the side of the government institutions and corporates, it wouldn’t be possible to achieve. Collectively we need to get together to push this forward only then will the country and the economy benefit at scale and realise new efficiencies from digital signatures.