Researcher: Standardize E-Signatures.

Widespread use of digital signatures by customers in financial transactions appears to be several years away, but now is the time to agree on a single technology for implementing it, according to a research analyst.

Because e-signature technology is still new, it's not standardized, said Dennis Behrman, a research analyst with Meridien Research Inc. and author of "The Case of the Invisible Ink: E-Signatures."

Since Congress passed a law recognizing e-signatures as binding, clients have sought advice on how to prioritize technology in their customer relationships, Behrman said. "I don't think financial services will see a whole lot of benefit or return to the institution," he said. The main reason for this is what he calls an "adoption curve."

The Electronic Signatures in Glob al and National Commerce Act took effect Oct. 1, giving electronic signatures the same legal standing as ink signatures. The law doesn't specify what technology companies should use for their e-signature processes. "It just says the technology used has to be agreed upon by the two parties," Behrman said.

The immediate impact of e-signature technology will occur in business to-business or internal applications, where employees, departments and partners use digital signatures in a closed, limited-user environment, said Tom Richards, research director for Meridien. "It will be a while before consumers may see a benefit in closing a loan at an ATM or at their PC, "Richards said in a statement.