5 Myths Credit Unions Have About Remote Online Notarization
For almost nine years, remote online notarization (RON) has been legal. RON gives anyone the ability to sign and notarize documents 100% online, connecting via a FaceTime-like experience with a commissioned notary 24x7. It really is a better, safer way of taking care of life's most important documents. Because consumers love it, we've seen the nation's top credit unions, such as BCU, roll out a digital notarization service to its members to close loans faster, and improve its operations.
Even though the benefits seem clear, we hear lots of myths about RON, and want to set the record straight. With RON, credit unions gain operational efficiencies and provide an added convenience for their members.
A couple weeks ago, we announced Notarize for Credit Unions and we’ve received lots of questions about how it works. Below I’ll break down the most common FAQs and misconceptions about remote online notarization.
Myth #1: RON isn't yet legal in my state so I can't use something like Notarize.
RON is already legal nationwide. In 2011, Virginia became the first state to allow appropriately commissioned notaries public to complete online notarizations for people located worldwide. That means a signer can use a notary public from a state that already has an active RON bill (like Virginia), no matter where the signer is physically located. Your members can use a service like Notarize to login to a video meeting and complete a notarization online.
Forty-nine states recognize and accept documents notarized by a remote, online notary. (We’re hoping Iowa accepts RON documents soon!)
Myth #2: RON won't make my business more efficient.
- Allison Yaney is a customer of ours from Baxter Credit Union. She says, “Notarize has helped reduce a process in paper that took days to complete, to an average of 15 minutes that gets sent right to our system.”
- Remote online notarization reduces loan turnaround times, improves operational efficiencies, and brings a digital-first service to member experience.
- Most credit unions start by leveraging RON for power of attorney forms for ‘smaller’ financing like cars, ATVs, trailers and RVs. After their teams are ramped up and comfortable with the process, then it’s a good time to explore fully online real estate closings with RON.
Myth #3: Adding technology to a notary process is more difficult.
No! Our average customer completes their notarization in less than fifteen minutes from the convenience of their home, workplace or even mobile phone. With RON, your members won’t have to travel or take time off work to complete a power of attorney form, real estate closing or other important documents.
Myth #4: My elderly members won't want to use this.
Yes! In fact, the majority of homebuyers who’ve done online real estate closings through Notarize are 50+ years old.
Think about it this way — most of your members already receive emails from you, login to an online portal to manage their finances and likely use a smartphone. As long as your members can open an email, and access an internet browser they can notarize their documents online. You’ve already digitized their member experience until the notarization, so why not just finish this last piece off?
Myth #5: Notarize will replace employees I have on staff today.
We don’t think so. You’ll probably always have members who’d rather come in-person to your office to handle their financial needs. However, you likely also have other members who’d rather do their banking online and with remote online notarization. By adopting RON, you’ll be able to offer them that convenience. Or, perhaps you have members who live far away from your physical location? Leveraging remote online notarization allows you to serve that member without requiring them to drive many miles or hours to get to you.
Learn more about bringing remote online notarization to your credit union: notarize.com/business/credit-unions.