The digital age has revolutionized how we do business, and the real estate industry is no exception. One significant change in recent years has been the rise of eSignatures. These allow for the electronic signing of documents and have become a vital tool for real estate transactions.
As a testament to the industry’s growth, GlobeNewswire reports that the eSignature market will increase in value from $4 billion today to $35 billion by 2029.
One reason for this increase in value is due to the integration of big data. Big data is fast becoming an essential tool across all industries, with a recent KPMG Global PropTech Survey listing big data as one of the top technologies in real estate.
With more industries looking to incorporate big data into their work processes, there has been a greater demand for access to data specialists.
A demand that is being met by universities who are offering more dedicated data courses to a wider pool of students.
With "most colleges and universities now offering data science and analytics programs and degrees, along with degrees in statistics, computer science and information sciences," data science gives graduates a career edge across all industries.
Today many universities have also opened up their courses to be 100% online.
An online data science degree teaches individuals the skillset to interpret and translate large quantities of data into actionable insights, even for work processes that many wouldn't automatically see a connection - such as eSignatures.
Big data plays a crucial role in maximizing the use of eSignatures in business.
The characteristics of big data can help improve the efficiency, accuracy, and security of eSignatures in the real estate industry. Here are three ways it does just that:
1. Streamlining the closing process
One of the most significant advantages of big data in real estate is its ability to streamline the closing process. Real estate companies can identify patterns by analyzing large data sets to help them make more informed decisions.
For example, data can be used to predict the likelihood of a closing taking place.
From here, real estate companies can prepare accordingly, such as by using eSignatures to automate the process of preparing and sending the necessary documents. Doing so speeds up the closing process faster.
Furthermore, data can also be used to identify common mistakes made during the closing process, such as missing signatures or incorrect information. With this information, real estate businesses can take the necessary measures to reduce or eliminate these errors.
2. Improving compliance
Big data can be used to improve compliance with legal and regulatory requirements related to eSignatures.
This includes the ESIGN Act of 2000, which provides a framework for businesses to comply with legal and regulatory requirements when using e-signatures.
To this end, digital contract management software can ensure that real estate businesses comply with those requirements through proper attribution, document tracking, and record retention.
Our tools can even support contract amendments to guarantee that any changes are authorized and legally binding.
Additionally, data can be used to identify problem areas, such as incomplete consent or inaccurate records, and take steps to correct those issues. By using data to ensure conformity with the law, eSignatures can help real estate companies avoid costly penalties and fines while still providing high-quality services to their clients.
3. Enhancing transaction security
Big data can enhance eSignatures in real estate by providing more robust security measures for transactions.
eSignatures work by encrypting data through a public key, ensuring integrity and preventing unauthorized document changes.
Big data strengthens the larger public key infrastructure (PKI) to create a more secure digital environment for real estate transactions.
For example, it can help identify fraudulent activity patterns, such as attempts to tamper with documents. This information can then be used to develop more advanced security protocols, such as audit trails and biometric authentication. These measures can be integrated into PKI to ensure that only authorized individuals can access confidential information, such as the parties' bank account or social security number.
By improving the eSignature process through big data, real estate companies can enhance their transaction security and ultimately strengthen trust in their services.
As technology continues to evolve, the use of big data in eSignature processes will become increasingly important. Real estate companies that invest in big data and eSignature technologies will have a competitive advantage in the industry.