Improving speed, cost, and satisfaction. Escrow Agent Japan delivers remote transactions for financial institutions with Adobe Sign.

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1 Improving speed, cost, and satisfaction. Escrow Agent Japan delivers remote transactions for financial institutions with Adobe Sign. Being able to conduct transactions anytime, anywhere is an essential element for online transactions in remote areas. Mr. Tatsuya Urushihara, Managing Director, SOLUTION Adobe Sign, an Adobe Document Cloud solution RESULTS Delivered an end-to-end ONLINE solution REDUCED cost and lead time for sending documents Supports smooth audits with ACCURATE history Achieves high satisfaction with signing ANYWHERE

2 Established in 2007 Employees: 245 Tokyo, Japan CHALLENGES Digitize signature processes required for remote mortgage transactions Propose a solution that meets the information requirements of legal regulations and financial institutions Expand remote transaction services to other fields USE CASES Digital Workflows Administration & Control Introducing unprecedented digital services supports real estate and financial business through its single package services made up of two businesses: business process outsourcing (BPO), which integrates multiple business operations in a real estate transaction from the sales contract to completion of the transaction; and escrow service, which improves business efficiency as well as security, rationality, and convenience. Escrow Agent Japan has taken on the challenge of engaging in a process that is normally completed face-to-face, namely mortgage transactions, but performing it as a remote transaction. The company has released multiple online services, from its online consultation service using a web conferencing system to its online identity verification service using Individual Number Cards. The process of signing contracts and agreements is normally difficult to do remotely, but Escrow Agent Japan achieved this by implementing Adobe Sign, the electronic signature solution within Adobe Document Cloud. With Adobe Sign in place, Escrow Agent Japan has realized a solution where all steps from consultation to identity verification to signatures can be performed online. Mr. Tatsuya Urushihara, Managing Director of Escrow Agent Japan, shared the following information about the lead up to and the results of implementing Adobe Sign. Challenges for remote transactions Many different types of financial institutions subcontract work to Escrow Agent Japan, but many are regional banks, second regional banks, and emerging banks. These types of banks have a limited number of people and branches that can handle explaining and contracting mortgages, so customers can have a difficult time making an appointment at their preferred time and date. In a growing number of cases, a customer who lives far from the branch would request an appointment, and the staff member would spend both time and cost to travel to the customer. In 2008, Escrow Agent Japan released its remote consultation service using a web conferencing system customized for financial institutions. There was a need to confirm the identity of the customer during transactions with the judicial clerk as a witness. In 2016, as municipalities began issuing Individual Number Cards to residents, the company released its public individual certification service (identify verification service), which allows parties to confirm identify remotely. However, in actual practice, customers needed to sign documents such as contracts and agreements, which was a major barrier to remote transactions.

3 Our ultimate goal is to make it possible to do everything remotely, from consultation to identity verification to signing, says Mr. Urushihara. However, in Japan there is a culture of using a seal, which created a big hurdle for digitization. There is almost no precedent for electronic signatures in domestic financial institutions. One of the greatest challenges for us was how to break through those barriers.. Meeting strict information requirements When proposing the introduction of an unprecedented electronic signature service to financial institutions, Escrow Agent Japan not only had to face technical challenges, but also questions about legality, while delivering high operability. Escrow Agent Japan looked at services from multiple companies, but the company ultimately adopted Adobe Sign. One of the biggest reasons that the company chose Adobe Sign was that the data center is operated in Japan. The Adobe Sign signature process, from sending the documents to signing, tracking, and managing documents, is all performed through this data center. Adobe Sign automatically converts documents to PDF, so there is no need to create a new document from scratch. Mr. Tatsuya Urushihara, Managing Director, I definitely wanted a server in Japan, says Mr. Urushihara. Financial institutions would likely not accept a service using a server overseas. When we made our proposal to customers, there were cases where that was the very first point that people brought up. Among the services that we considered, Adobe Sign was the only one with a server in Japan. The second reason for choosing Adobe Sign involved the ease of creating documents. The format for documents that need to be signed can vary from one financial institution to another, so Escrow Agent Japan needed to be able to handle any format. Most of the contracts and agreements from financial institutions are created in Word and Excel. says Mr. Urushihara. Adobe Sign automatically converts documents to PDF, so there is no need to create a new document from scratch. You can add fields for signatures and inputting information with drag-and-drop operations, so it s very easy to understand and use. Our job is to create and send documents, but financial institutions could also easily create documents, so we could even make this part of the transaction self-service to further improve transaction efficiency. Introducing unprecedented electronic signature service After careful evaluation, Escrow Agent Japan first introduced its electronic signature service using Adobe Sign (intent verification service) to regional banks who were aiming to sign loans outside of their local prefectures. Completely switching a bank over from seals to electronic signatures was a bit too high of a hurdle, so we decided to start with electronically signing agreements and confirmation letters, and gradually building on those achievements, says Mr. Urushihara. Even using electronic signatures for these documents was quite unprecedented, so it took time to convince people to sign on. First, we implemented it on a trial basis, and we verified that there were no technology, security, or compliance issues.

4 We ve dramatically reduced the time it takes for documents to arrive and accelerated the timeline for financing, which is a huge benefit for customers. Mr. Tatsuya Urushihara, Managing Director, Explanation of important matter and confirmation of intent Identity verification for lodgers After a trial period of nearly six months, the service entered production and gradually gained the attention of other financial institutions. Escrow Agent Japan proceeded to implement the service into two other regional banks, establishing the precedent that financial institutions were looking for. Reducing cost and lead time Mr. Urushihara says that the results after implementing the service are clear. The financial institutions using the service also praise it. First of all, we can look at the exchange of documents between financial institutions and customers, says Mr. Urushihara. Normally, when exchanging paper contracts or agreements, people needed to send the document by a traceable certified mail or courier service. With Adobe Sign, we ve been able to reduce those costs significantly. We ve also dramatically reduced the time it takes for documents to arrive and accelerated the timeline for financing, which is a huge benefit for customers. Furthermore, financial instructions also praised the ability to create a history of document exchanges. With Adobe Sign, institutions can record the history of all transactions with a timestamped audit trail. The date and time are managed by the server-side systems, so they cannot be altered.

5 Being able to see an accurate history of who opened a file, signed it, replied, and when is extremely valuable for financial institutions. During an audit or other such investigation, it can be presented as clear evidence. Mr. Tatsuya Urushihara, Managing Director, This history function is a benefit that we didn t expect, says Mr. Urushihara. Being able to see an accurate history of who opened a file, signed it, replied, and when is extremely valuable for financial institutions. During an audit or other such investigation, it can be presented as clear evidence. Paper copies could be forged and alterations are not always easy to identify. The fact that signed documents can be stored on the server as PDF documents also led to high praise. More than anything else, searching for documents is far easier. There are many things that may prompt people to look at past data, such as fluctuations in interest rates, says Mr. Urushihara. It is very convenient that staff can look up the document by name, company, date, or any other factor. Furthermore, there are many cases where financial institutions store documents on paper, but home loans typically last a minimum of 10 years, and up to 35 years. All of the related documents, from the estimate to the final contract, are gathered together in a binder and stored in a warehouse. With Adobe Sign, staff can download and print out a PDF from the server whenever needed, so it also provides more flexibility than paper processes. For Escrow Agent Japan s online services, customers overwhelmingly use mobile devices, such as smartphones. This is also true for electronic signature services. Therefore, high usability on mobile devices leads to improvements in customer satisfaction. Adobe Sign can be used on any device, from desktops to smartphones, whether the user is requesting a signature or signing. There is no need to download a new app, and people can sign from any browser. With so few steps, users can complete their tasks in just a few seconds. Customers are not always participating in a consultation from their home computer, says Mr. Urushihara. They connect from many different places, including coffee shops or restaurants. Being able to conduct transactions anytime, anywhere is an essential element of online transactions in remote areas. Aiming for new uses of electronic signatures It has been a year since Escrow Agent Japan first released its electronic signature service. The service is now in production for three financial institutions, and word of their results are spreading throughout the industry. Financial institutions are not the only ones who are feeling the necessity of remote transactions, says Mr. Urushihara. The same need is growing throughout our main business: real estate transactions. There is currently a push for companies to take a closer look at their use of IT, so we re looking to aggressively promote these services in this field. Furthermore, there are many new opportunities for processes using Adobe Sign, such as online identity verification for lodgers. Visitors from overseas currently use their passports as verification of identity, but we are looking at a process where customers can take a picture of their passport with a smartphone or other device, and the service will automatically import the data into a document and send it for signature. This proposal has already been submitted to the Ministry of Land, Infrastructure, and Transport, and I think that we will be able to release it promptly.

6 SOLUTION AT A GLANCE Adobe Document Cloud Adobe Sign Mr. Urushihara continues, We have not been in full-scale production with Adobe Sign for long, so we are still exploring what can be done, but we believe that it has great potential. The ability to capture the impression of a seal is very interesting. We are starting with signatures for agreements and verifications, but the day when we can break down the wall of using official registered seals is not long off. About Escrow Agent Japan Since its founding, Escrow Agent Japan has specialized in real estate and financial services that meet the low-cost operational needs of financial institutions, from major banks to regional banks, internet banks, mortgage banks, and financial subsidiaries of other business companies. Escrow Agent Japan also leverages its national network of specialists, such as judicial clerks, to provide systems that help with all types of outsourcing work for financial institutions and improve the reliability of transactions. For more information Adobe Systems Incorporated 345 Park Avenue San Jose, CA USA Information contained in this story is accurate as of September Adobe and the Adobe logo are either registered trademarks or trademarks of Adobe Systems Incorporated in the United States and/or other countries. All other trademarks are the property of their respective owners Adobe Systems Incorporated. All rights reserved. 2/18