Confidence

The financial ecosystem is built on trust. This means that when operating a Fintech, one of the major challenges is to establish trust. Why is this a challenge? The financial sector, much like the legal sector, is a traditional industry. As a result, technological changes that bring about a shift in processes that have been conducted in the same manner for many years (not to mention decades) create disruption and confusion.

Our Solution: Increasing the Level of Transparency

Vaas is a platform that allows monitoring everything from the state of the financial portfolio, document signing processes, to verification processes. This transforms into a platform through which both borrowers and lenders can quickly and comprehensively access all the information they need to carry out their assignments or other operations efficiently.

From a legal standpoint, we have three important points to highlight when discussing transparency, namely: digital signature, compliance, and data handling. This blog will focus on digital signature.

Contract Creation

To understand why digital signature is such a disruptive yet efficient solution, we need to begin with the creation of the contract. The essential elements for creating a contract are: capacity, consent, object, and cause. In this case, we will focus on consent. For a contract to be valid between the parties and for them to be mutually bound, there must be mutual consent, meaning both parties must give their consent. Traditionally, this consent is obtained through the handwritten signatures of the legal representatives of each party.

While the above may not seem like a cumbersome process, when dealing with certain types of contracts, such as those involving financial instructions, this perspective can change. For example, our clients have the need to access their credits quickly and securely. To achieve this, documents must be generated and then go through authorization.

Here we identify two problems: 1. Having to physically sign the documents causes access to financing to be delayed for many days, and 2. achieving a solution that ensures trust and transparency between the parties while also having all the necessary legal guarantees. This is how we arrived at our digital signature solution.

Digital Signature

The use of digital signatures within the platform is one of the functionalities that enables a complete and transparent process. Digital signature is a tool that has been in use for several years in other jurisdictions such as Europe and the United States and is now increasingly being adopted in Latin America. Digital signature allows signatories to sign remotely and online with a signature that is recorded with a unique document identifier, as well as the date and time of the document's signing. This signature holds the same validity as a handwritten signature, both in Mexico and Colombia.

As we focus on expediting reconciliation processes and similar tasks without sacrificing necessary formalities, the integration of the signing process into our platform allows for the creation of a document flow recorded within our system. As a result, our clients can verify, sign, and directly access their documents.

By reinforcing transparency, we positively impact trust and move towards a more efficient world from both a financial and legal perspective. The upcoming entries will focus on the other two key points, compliance, and data protection, which allow us to have a completely transparent and reliable process.

By: Cristina Martin | Legal Manager

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