Banks — Please Don’t Stop Notarizing!
Banks, especially community banks and credit unions used to be a great place to notarize documents. Often, they offered this service for free or a minimal fee, not just to their customers but potential customers. Many bank employees, especially at branches were encouraged to become notaries. There were many advantages to the bank in doing this. It was a great way to retain existing customers or bring new customers through the door. Where they charged for this service, it was a tidy revenue stream.
According to the National Community Reinvestment Coalition, since 2017, more than 4,400 branches were lost across the country, representing a 5.1% loss. This loss has only been exasperated by the COVID-19 pandemic.
What is less discussed is how customer behaviour is rapidly evolving. They are learning to do and even seek remote interactions. Not only does it provide a sense of security but it also provides convenience. Banks too are realizing that they can offer more and more services as remote services.
Frankly, this is a win-win and represents an opportunity for all parties. Banks can save on cost and more efficiently apply personnel.
One area that is prime for disruption is remote online notarization or RON. As the name suggests this is where a customer connects to a remote notary online. The document is notarized online. In all respects, it is superior to an in-person notarization for both parties.
It should be noted that online notarization is not mobile notary services where a notary comes to your location to notarize the document. Additionally, most states require a regular notary to get a special commission to offer online notarization.
So, is this legal? Not only is it legal, but it is also more secure. Except for California and South Carolina, all states allow their notaries to perform RON either permanently or temporarily. It should be noted that all states accept electronically notarized documents.
It is a lot more secure as identity is validated by two-factor authentication by Drivers License and a knowledge-based quiz. Additionally, the electronic signature applied by a notary with a secure X.509 digital certificate.
The AtNotarize platform, which is an online platform for notarization is among the first platforms to apply blockchain to further maintain trust in the transaction. All transactions on AtNotarize can be verified for authenticity and against tampering.
Banks can easily license a platform such as AtNotarize at a low cost. They can use their notaries and provide a valuable service to their customers. If banks do not have notaries or do not want to participate in the platform, they can avail “Notarization as a service”. Platforms such as AtNotarize offer dedicated notaries to banks who can continue to service their customers.
If you are a bank and looking to differentiate your services and continue to stay relevant, you need to consider remote online notarization. It is easier to implement what you think and your customers will appreciate you for it.
