Contributed Post By: Stephen Bisbee of eOriginal
Since its inception in the late ‘90s, electronic transaction management (ETM) has gained momentum across a variety of industries including equipment leasing, security alarm contracting, consumer finance, mortgage and auto financing, and continues to expand as technical solutions mature, delivery moves to mobile devices, and the resulting efficiencies become increasingly clear.
The enactment of e-commerce legislature established that electronic signatures and transactions carry the same legal weight as their paper counterparts, and the risks historically associated with online information and document accessibility have been minimized. Progressive companies that have adopted an ETM solution are actually mitigating security risks. Why? Legal enforceability and quality control measures have been established as a result of the increase in regulatory compliance requirements born out of the recent credit crisis. In fact, the legal counsel and ratings agencies that have supported electronic asset-backed securities have accepted advanced ETM solutions as meeting their requirements for securitization, pledging and pooling contracts.
So why are more and more organizations adopting ETM practices? Companies that integrate ETM into their business processes are reaping significant benefits directly tied to the organization’s bottom line, including:
- Reduced Revenue Cycles. By streamlining approval processes, the required time to close a piece of business can be drastically reduced from weeks to hours or even minutes. Enabling straight-through processing can reduce deal drop-out rates and actually increase contract volume.
- Reduced Costs. ETM offers drastic cuts in business process costs, such as staff, materials and travel, by eliminating paper processes and the time required to manually receive, review, validate, correct, return, archive, retrieve and manage transaction documentation.
- Improved Customer Satisfaction. Perhaps most importantly, the ease and speed of ETM can create a much more pleasant customer experience with seamless, automated business processes, shortened wait times and ease of use. A truly effective ETM program can ultimately improve customer satisfaction and increase renewal rates.
- Market Share. With the ease, value and reach achieved from implementing ETM, organizations are positioned to gain market share, leveraging existing resources, as well as creating a shield to prevent the loss of market share to competitors seeking to utilize technology advancements for competitive advantage in specific marketplaces.
With electronic transactions becoming simpler, more accessible and legally enforceable, the time to adopt an electronic transaction management solution is now.