People, and more recently, companies, have been keeping archives for centuries. Humans and institutions need to record and preserve information, transactions, contracts and records. Paper has been the most common means of documenting and storing information, and paper archives are still in use today, much as they have been for hundreds of years. The move to digital documents and the development of electronic signatures, and the means to securely create, sign and store digital documents, is changing the landscape, however.
The traditional problem with paper archival for compliance has been the ability to retrieve the original when required - either to verify the information, or for legal discovery, when documentation needs to be produced for the courts. This was clearly illustrated for LAWtrust one day when the company decided to do an experiment with the archives of a bank.
The company went to the bank's archives to withdraw three boxes that contained FICA documents. Well, they were supposed to contain FICA documents. The first two that were randomly selected and opened contained FICA documents, but not those listed on the label. The third contained empty boxes.
This is problematic for several reasons. The bank was paying to keep empty boxes in secure storage and it had incurred the cost of organising, collecting, filing and boxing documents incorrectly, rendering the process useless. If documents are not catalogued correctly, it is very difficult to find the right thing in kilometres and kilometres of (probably badly labelled) boxes. This has legal implications if an organisation cannot locate and produce a given document when required.
Electronic storage
People keep paper because they're scared they'll need it later. And then there are the legal and regulatory requirements to preserve records for specified lengths of time. Records don't need to be kept as paper, however; they can keep electronic versions too.
Documents can be electronically created (referred to as electronic origination) as described under the ECT Act, as long as the integrity of the document can be verified, which electronic signatures enable easily. Documents can also be legally digitised by being scanned into a system and electronically sealed. The original can then be destroyed. In both these cases, the documents can then be electronically filed.
People keep paper because they're scared they'll need it later.
The only exceptions are where original signatures are needed, in which case the original needs to be kept. This requirement can also be satisfied by using an advanced electronic signature - the only type of digital signature considered by the courts to be valid, and which moves the burden of proof away from the company applying the signature.
There are other very specific exclusions of documents where an original must be maintained, like wills, but any business document, like a contract, can be electronic in form and electronically signed. Where signatures are necessary, an advanced electronic signature is considered adequate.
Taking the plunge
From a practical point of view, companies can tackle this in two ways:
* Look at the documents in storage, start scanning and digitally signing them, and then catalogue them in an electronic archive. This is a very straightforward step to take to reduce costs, and will enable companies to find the papers they need to keep.
* Investigate electronic origination - documents then cease to exist on paper at all. Documents can be electronically signed, and companies can realise great benefits in terms of costs and efficiencies when executing processes like signing up customers, or circulating board minutes for signatures and so on.
With privacy legislation like the Protection of Personal Information (POPI) Act on the way, electronic origination and signing presents a great way to get consent from customers and staff on how to use their personal information, and to be able to store it effectively.
It's also good for companies to get ahead of the digital curve - in future, all citizens will have electronic identity cards, and companies that can rely on electronic signatures and have integrated them into their businesses and business processes will be ahead of the game.
Good record-keeping is also good governance, and electronic documents have several advantages here, including being less fragile.
Will digital signatures spell the end of the line for paper archives? Most definitely! It's only a matter of time.
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