What purpose do signature cards serve in banking?

Signature cards primarily function to confirm the identity of authorized account holders. When you open a bank account, you usually sign a signature card that displays your signature. This signature serves as a reference for the bank to verify your identity whenever you make transactions or withdrawals. It's a security measure to ensure that only individuals authorized on the account can access it, thereby protecting against fraud and unauthorized access.

In addition to this security role, the other choices do not accurately reflect the main purpose of signature cards. For example, while account transactions are an important aspect of banking, they are documented through different means, such as account statements, rather than being listed on the signature card. Moreover, signature cards do not provide information about bank fees or serve to automatically authorize loans. Their focused role is to maintain the integrity of account access by verifying the identities of those who are entitled to access the account.