Written by Szilveszter Szebeni, Chief Data and Compliance Officer at Tresorit
As financial services companies advance their digital transformation, sensitive data has become highly valuable to cyber criminals. Secure and efficient data management is therefore crucial for success in the finance industry. New research suggests that 59 per cent of financial services firms have been hit by a ransomware or cyber-attack in the past 12 months, and findings show the sector accounts for 22 per cent of total ransomware attacks.
While protecting sensitive data in this sector is vital, financial services firms must also ensure they adapt to evolving work habits, especially the shift toward remote work. A study by Deloitte revealed that collaborative tools not only increase employee engagement and improve morale, but above all boost productivity by streamlining work management processes and communication.
Financial services firms appear to face a dual challenge: protecting sensitive information while ensuring seamless communication and collaboration among teams, clients, and partners. As a sector highly targeted by attacks, financial services companies must make sure they have secure productivity solutions in place.
In response to these challenges, here I’ll explore the five key steps financial services firms should take to ensure they are building a robust and secure workplace environment. The following elements not only provide protection but go a long way towards promoting business continuity and productivity:
- Secure client data room
Financial services companies often exchange sensitive information with clients to provide their services effectively. To ensure this information remains protected, many businesses in the sector are turning to encrypted data rooms. These end-to-end encrypted data storage repositories guarantee the confidentiality of clients’ information in line with GDPR or NIS2 and industry-specific standards as well, throughout all collaboration.
Secure client data rooms can significantly enhance productivity for financial services teams. With no training and account registration required, financial organisations can onboard clients in a matter of seconds, kick off workflows automatically and start collaborating via a user-friendly interface. These dedicated spaces for client collaboration allow seamless file sharing and requests, along with quick digital document signing, all within a zero-knowledge end-to-end encrypted environment, ensuring maximum security.
Client data rooms that operate on zero-knowledge principles and employ end-to-end protection for data when stored and when in transit, such as Tresorit’s secure client data room solution, ensure sensitive client information remains inaccessible to unauthorised users, even in the event of an attack.
- Robust partner collaboration portal
Conversations about cyber security risks, such as supply chain breaches, are increasingly relevant following high-profile incidents like the JetBrains supply chain breach in 2023. Despite these risks, only just over one in 10 UK businesses have reviewed the risks posed by their immediate suppliers.
For financial services teams, an effective partner data room offers advanced protection and peace of mind. It allows them to maintain complete control over their data when engaging with partners and suppliers. An end-to-end encrypted partner portal not only ensures secure collaboration and ownership of sensitive information but also enhances efficiency and productivity by enabling work from any device, anywhere, at any time.
A robust partner data room also facilitates compliance, allowing financial services teams to collaborate with partners while adhering to industry standards. Detailed log and audit trails of all file interactions help ensure alignment with internal and external security and compliance policies.
Financial services firms can keep full control over external user and file activities, ensuring that only authorised individuals can view and edit documents. They can also revoke partner access at any time without losing access to the shared information.
- Integrated eSignature solution
Financial services companies should ensure that their secure partner and client data rooms come with an integrated eSignature solution. By digitalising the way of processing confidential documents such as contracts or Letters of Authority (LOAs), with an eSignature solution, financial services can significantly reduce the time needed for approvals, increase productivity and minimise the risk of errors. After signing confidential documents, users can send final versions via encrypted share links so only authorised recipients are able to access them.
By implementing an end-to-end encrypted data storage repository with an integrated eSignature solution and secure sharing options, financial services teams can ensure the security of sensitive documents throughout their lifecycle. This centralised file management system allows for secure storage, sharing, and signing of documents without compromising security.
Documents transition smoothly from signing to storage within the same platform, minimising workflow disruptions and eliminating the need for additional tools. After signing, users can send the final contract via encrypted links to ensure only authorised recipients have access.
- Cyber awareness training
Human error is still a major factor in cyber breaches, often representing the weakest link in an organisation’s cyber security. For financial services firms, handling sensitive financial information makes this issue even more critical. Cyber awareness training equips employees with the skills to recognise and respond to threats effectively, significantly reducing the risk of breaches. Comprehensive training not only educates staff about various threats but also provides guidelines for responding swiftly to incidents, helping to mitigate potential damage.
This proactive approach fosters a culture of security within the organisation, making employees more vigilant and responsible. Investing in cyber awareness training is a cost-effective way to enhance security, ensure compliance with regulations like GDPR, and build client trust. Overall, it demonstrates a firm’s commitment to protecting sensitive information and reducing the likelihood of costly breaches.
- Regular security audits
Regular security audits are essential for a strong cyber defence strategy. They help financial services firms identify and address vulnerabilities in their digital infrastructure before they can be exploited. These audits ensure that security measures are current and effective, allowing firms to adapt to evolving threats and improve their overall security environment.
Audits provide a comprehensive review of both technical controls and procedural aspects, ensuring all elements of a firm’s cyber security work together. This process often reveals areas for policy and practice improvements, further strengthening defences.
Routine security audits also promote a culture of continuous improvement and vigilance. By integrating these audits into their security management, financial services companies can enhance preparedness, resilience, and reduce the risk of successful cyber-attacks.
Safeguarding data while promoting business continuity and productivity
The financial services sector faces a dual challenge: protecting sensitive data from cyber threats while fostering a collaborative and productive work environment. By implementing secure client data rooms and robust partner collaboration portals with integrated eSignature solutions, together with comprehensive cyber awareness training, and regular security audits, financial services firms can effectively address these challenges.
These measures not only enhance data security but also streamline operations, ensuring compliance with industry standards and regulations. Ultimately, a secure and efficient workplace environment promotes business continuity, resilience, and productivity, setting up financial services firms for sustained success in an increasingly digital landscape.
