Why Hosted FTP Is the Best Decision for Financial Services

Every financial organization has a need to share files among employees and even with outside partners or clients. The question is: What is the best solution for carrying out this exchange of data for carrying out this exchange of data in an efficient, organized, mobile and secure way?

While many cloud-based file sharing options are becoming increasingly popular, the best decision for financial services organizations is often to rely on a hosted FTP site for storing and accessing critical business information.

If you’re wondering why your financial institution should opt for this solution, here are some of the most significant FTP client features that make this option the best.

Security of Sensitive Material

“The financial services industry is among the most heavily targeted sectors by cybercriminals. In 2015 we saw a surge in attacks that involved extortion, social engineering, credential-stealing malware and sophisticated threats.” (Security Week)

There’s no question that any organization in the financial services industry has to be concerned with the security of its data assets. With the prevalence of cyber threats and ransomware attacks, top-notch information security is an absolute must. Some FTP server features offered by services like Sharetru include:

At-rest and in-transit encryption

Regardless of how users are interacting with your data, you can rest easy knowing that the information is secure. Only the sender and the recipient can access the data, even if the file is intercepted by a third party.

Strict password enforcement and user access controls

To avoid jeopardizing the security of your data, you must be able to password-protect and control access on an individual level rather than a company-wide one. This includes setting read and write permissions for specific people in specific departments or categories of the business.

Visibility and writing capabilities

Visibility of data should be classified based on the sensitivity of that data, and only granted to those individuals specifically designated to access it. Writing capabilities should be controlled on an individual basis as well.

Global access restrictions by country

If you have users around the world, it is essential to be vigilant with your data, maintaining tight control over who is accessing it and from where. You can limit access by country using Sharetru’s highly accurate, professional geo-IP database. Select the countries you wish to accept, and the rest are blocked.

These types of security provisions are essential to keeping your financial institution’s digital information private and safe. They enable a high level of visibility into and control over folders and files.

GLBA Compliance

In today’s day and age, security isn’t just about preventing cyber attacks. There are now compliance regulations that must be strictly followed, or your organization is at risk of facing violation penalties.

In the financial industry, one such regulation is the Gramm-Leach-Bliley Act, also known as GLBA. If your financial institution isn’t using a file sharing solution that’s GLBA compliant, you’ve got a major problem on your hands. Maintaining compliance is about protecting your organization from the kind of data breach that could cost you big time -- in both dollars and credibility.

“As part of its implementation of the GLB Act, the Federal Trade Commission (FTC) issued the Safeguards Rule, which requires financial institutions under FTC jurisdiction to have measures in place to keep customer information secure. But safeguarding customer information isn’t just the law. It also makes good business sense. When you show customers you care about the security of their personal information, you increase their confidence in your company.” (Federal Trade Commission)

Staying GLBA compliant does more than just position your financial institution to prevent existing threats; it also provides the framework for addressing any new ones as they arise.

The Gramm-Leach-Bliley Act may have been established in more than a decade ago, but it is updated often to ensure that financial businesses have the latest information security requirements integrated with their data processes.

The best way to comply with GLBA regulations is to use a hosted FTP site provider that is sensitive to and knowledgeable about GLBA compliance. This takes the burden of compliance off your shoulders and gives you the tools to make sure your financial industry data is protected at all times.