Commercial Bank of Ceylon has announced it is now accepting digitally signed documents from business customers using LankaSign operated by LankaClear, the only commercially operating certification authority in the country, which complies with the Electronic Transactions Act.

The bank recently signed a memorandum of understanding with LankaClear as the first step towards embracing digital signatures. Commercial Bank is the first entity in Sri Lanka’s financial sector to adopt LankaSign digital signatures for document signing.

In the first phase of this development, the bank will encourage its corporate customers to submit their online banking applications signed digitally. Acceptance of digital signatures will be extended to other banking-related documents shortly, the bank said.

Commenting on the roll out of digital signature acceptance for the bank’s customers, Commercial Bank Managing Director S. Renganathan said, “While technology offers unparalleled convenience and advantages to financial institutions and their customers, there are security and fraud-related risks. With the exponential increase in the use of electronic transactions, the need for advanced IT security infrastructure becomes critical in order to eliminate these risks. The introduction of the digital signature feature powered by LankaSign is therefore another important step in this direction.” “Additionally, the adoption of digital signatures is an advance in convenience for our corporate customers, especially during the pandemic,” Renganathan said.

Digital signatures help businesses save on cost and time with documents and contracts signed off with a click of a button, eliminate the need for indirect costs and costs related to wet signatures, enhance workflow efficiency and provide a better customer experience. They are highly secure and reduce the risk of duplication or alteration of the document or the signature itself, are legally valid and are environment friendly because they contribute towards reducing waste.

Speaking of this partnership with ComBank, LankaClear General Manager/CEO Channa de Silva said, “We applaud Commercial Bank on its progressive move towards introducing LankaSign Digital Signatures for document signing to customers. At a time when travel restrictions are in place and banks themselves operate with limited staff, we believe this initiative is timely and customer friendly. 

Furthermore, it will also provide the much-needed assurance of integrity, non repudiation and authentication for all digitally-signed documents, which is essential in safeguarding the interest of the bank and its customers in the face of rising risk of cybersecurity threats.”