the road to innovative automotive financing services and processes: part two
TRANSCRIPT
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“The road to innovation through DTM within the non-prime automotiveindustry is not a simple narrative about businesses simply needing to move beyond the comfort zone of paper.”
© eOriginal, Inc. www.eoriginal.com
Digital Transaction Management: The Road to Innovative Automotive Financing Services and Processes
Part Two
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Five Guidelines for Legal Enforceability
Courts have evaluated the enforceability of
digitally-executed financial assets and have provided five
guidelines that every organization should
follow:
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1. Issue User Names
Issue user names to authorized persons and require such persons to immediately change the default password upon log in to a unique and confidential password.
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2. Automate Login Password Change Requests
Automate login password change requests such that the password is used and changed only by the person issued the
user name associated with that password, and record the date,
time and terminal at which each password change
request is made.
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3. Present the Agreement for Review
Present the agreement for review and execution in a manner which allows the
person viewing the agreement to easily read the agreement in
full, and download it to personal electronic storage
and/or print it out, both before and after signing.
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4. Retain the Integrity of the Agreement
Retain the integrity of the agreement that is posted for execution to ensure that no
part of the agreement is changed after it is signed by
the first party and throughout its lifetime.
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5. Provide an Audit Trail
Provide an audit trail showing every time the agreement is accessed and/or signed, the
date, time and terminal at which agreement is accessed and/or signed, the user names of all
persons accessing and/or signing that agreement, any changes to
the agreement including deletions, copy print outs and electronic file transfers of the
agreement, and all other information regarding the
execution and maintenance of that agreement.
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eContract Process Flow Example- Vehicle Financing
Buyer/SellerAuto FinanceContract Docs
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The Laws that Allow for Digital Transactions
The Uniform Electronic Transaction Act (UETA) and the Federal Electronic Signatures in Global and National Commerce (ESIGN) Act empower electronic
documents and electronic signatures to be used with the same effect as paper documents and ink signatures.
Click here to read the entire article on Non-Prime Times
The official publication of the National Automotive Finance Association
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15th Anniversary
As we celebrated the 15th anniversary of the signing of the ESIGN Act, we appreciate
how far the industry has come on its acceptance of digital
transactions. Unfortunately, some of the same
misperceptions that we faced then are still alive today.
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Execution of a Contract
Over the past 15 years, the physicality of digital signature technology and the action of eSigning a contract has significantly transformed. In 2015, an eSignature should no longer be considered aphysical signature, but rather an execution of a contract within the signing ceremony.
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Going Beyond Simple Signature Capabilities
Technology has allowed industry players to go beyond just simple
signature capabilities. For example, customizable solutions on the market
allow for multimedia eSignature capture – providing an authenticated,
fully electronic agreement utilizing “signatures” consisting of voice, video or photo files, thumbprints, eye scans,
palm prints, biometric signature data and more.
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The Ideal Option
In many cases, this option is ideal for the non-prime
automotive industry because it allows for digital contracts
to be more secure for the lender and funder as the
industry continues to adopt end-to-end digital solutions
to help mitigate risk.
Demystifying eContracting for Auto Finance:Best Practices to Find a Solution that Improves Efficiency and
Accelerates Funding Click here to read more
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About UseOriginal, Inc., founded in 1996, is the standard for eAsset® Management services for any business that needs the ability to verify secure, legally compliant and enforceable electronic asset documentation.
eOriginal provides the maintenance, control and use of critical documents that have an intrinsic value, such as negotiable instruments, in a fully electronic environment, storing and protecting these assets throughout their entire lifecycle, including post signature execution. By maintaining the authenticity of original documents, the identity of the signatories, and the integrity of the content, eOriginal provides customers with the capability to realize the true benefits of fully electronic transactions and the resulting business process improvements.
For more information about us, please visit www.eoriginal.com or contact us at [email protected]
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