Why there is a need for a digital identity for companies
An essential aspect of this is the proof of one's own identity. The recent video phone calls between the mayor of Berlin and her colleagues from Vienna and Madrid and the ostensible head of the city of Kiev, Vitali Klitschko, impressively demonstrate the relevance of the issue.
For companies, secure data exchange with customers, suppliers, employees or other parties is not (yet) about protection against deepfakes, but widespread fraud schemes such as CEO fraud are already pointing in this direction. Digital signatures are currently available as an effective means of proving that the interlocutor is indeed the real person and that important documents originate from the "correct" sender and have not been manipulated. In this context, "correct" means that I can convince myself with the help of an independent and trustworthy third party that I am communicating with the right person or the right company. This is a problem that the EU Commission is also aware of - since June 2021, there has been a corresponding recommendation for a European digital identity (eID) for people and companies. From 2030, it should be possible throughout the EU to identify oneself or provide proof of certain personal information, including for companies.
Very few companies can probably wait eight years for a solution. For the abundant use cases, it is therefore important to make the best possible use of the tools already available today. In business transactions, it is essential to clearly and verifiably identify the parties involved. Signatures are ideal for this purpose. It is also important to distinguish between natural and legal persons, which highlights the need for a digital identity for companies. Whoever has the most suitable system in place therefore has the better cards - and in the event of damage, also clear evidence in legal disputes. A high degree of automation in processes leads to optimal traceability and greater legal certainty through secure, digital data exchange. The use of proven state-of-the-art technologies, which are based on EU-wide regulations such as the eIDAS Regulation, provides additional confidence. Even legal "trifles" such as a reversal of the burden of proof can be implemented in specific cases.
A frequently asked question in this context is that of the "better system. The supposed competitors: manual (i.e. biometric) signature with signature pad, seal or certificate. To answer this question, I invite you to take a trip to your own company: Walk through your company with open eyes and pay attention to where something is signed or released (purchase orders, order confirmations, service contracts, ...). Also pay attention to where external partners sign documents (orders, waybills, delivery bills, goods receipts, etc.). And also record how these transactions are confirmed. If the signature is done by hand, you're in good company: According to Adobe Digital Insights 2021, only 50 percent of all companies in the EU sign documents digitally on average, and only 36 percent in Germany. Yet professional and affordable solutions have long been available: Signature processes can be accelerated with a central digital signature folder, and processes that generate many documents such as invoices or purchase orders can be automatically signed and integrated into SAP ERP or S/4.
To protect these outgoing documents against manipulation, they can be automatically signed with a corporate seal. This makes it clear to the recipient that the legal entity has signed the document. Pay slips can also be provided with a unique proof of origin and individually encrypted using a digital company signature. And there is also a practical solution for the personal signature of a natural person (aka certificate) - remote signature using a mobile signature on a smartphone.
As you can see, the technical possibilities are there. But getting it all under control technically and keeping it manageable requires a comprehensive approach. For example, a construction kit that builds on your company's unique digital identity and allows you to implement the desired options. Such solutions already exist, such as Trust2Go from GlobalTrust with signature solutions from r>it. This means that the question of remote signature, seals or certificates does not arise either, because everything is on board.
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