So far, the adoption of electronic signatures has been a huge disappointment. This technology — intended to replace the handwritten signature — is at the core of the automation of key business processes, and its widespread adoption will uncover even more levels of business process optimization. Yet we seem to be unable to make the leap.
The Emerging Trends and Technologies team has linked up with the Security and Privacy team to examine the issues that are keeping e-signatures from mass-market adoption and to examine what regulatory, market and technology triggers will spur wider adoption.
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Enterprises should not expect a stable legal environment for electronic signatures or an advanced electronic authentication infrastructure to emerge before 2005.
Many laws, standards, technologies, options and opinions confront companies that traverse the confusing territory of e-signatures on the path to fast, secure e-transactions.
Reports that pen-and-ink signatures are obsolete for important transactions are premature because electronic signature laws do not require digital signatures and nonrepudiation remains problematic.
Signing code with digital signatures can help verify its source and internal integrity; however, it doesn't guarantee the software will work as expected. Additional controls are needed to ensure security.
Through 2006, the legal landscape within and between state and national borders will remain a major inhibitor to the adoption of e-signatures. Enterprises must understand the lay of the land in their operating territory.
Corporate financial managers want financial service providers to mitigate risks, but most banks are not offering digital signature and public key infrastructure services, which can help. Why is there a disconnect?
Current laws promote both flexibility and disparity in government e-signature use. Pending legislation for stronger state-issued IDs will lay the groundwork for improved security, operational efficiency and service.
The technology for trusted e-signatures is available — public key infrastructure (PKI) for digital signatures, smart cards for key storage and biometrics for accountability — but isn't pervasive or robust.
