Secure File Transfer in the Banking and Finance Sector

As cyber threats become more sophisticated, the banking and finance sector faces rising challenges in safeguarding confidential customer data. In 2020, financial organisations and financial services businesses experienced a 238% increase in malware attacks [1]. Nearly 75% of banks and insurance companies saw a spike in cyber crime since the start of the COVID pandemic. A report by RSI Security found that cyber risk in the banking sector significantly surged up by 1,318% year-on-year [2].

According to a worldwide IBM-Ponemon Institute report [3], credential-related breaches account for 20 percent of all breaches, making them the most common of all initial attack vectors. The same report also found that data breaches are now worth $4.24 million per incident on average for the companies surveyed – the highest cost ever in the 17-year history of the report.

Secure file transfer solutions have become critical in maintaining security, efficiency, and compliance. In this article, we discuss the essential requirement of secure file transfer and analyse the features of CompleteFTP, and how it could help your business.

What is Secure File Transfer?

Secure file transfer involves sending data from one place to another in an encrypted and protected manner. This method employs encryption, authentication, and authorization systems to guard data from unauthorised entry, corruption, or embezzlement. As a result, banking and financial institutions can maintain the confidentiality and integrity of sensitive information.

Stopping Data Breaches

The banking and finance industry handles immense amounts of sensitive data, such as personal and financial details, account information, and transaction history. Secure file transfer solutions such as CompleteFTP help protect this data from cybercriminals seeking to exploit vulnerabilities in security systems. By stopping data breaches, financial institutions can prevent expensive consequences such as loss of customer trust, financial losses, legal ramifications, and reputational damage.

Streamlining Data Transfer

In addition to improving security, secure file transfer solutions like CompleteFTP optimise the data transfer procedure. They ensure that data is transferred fast and efficiently without delays or interruptions, which is vital in the dynamic banking and finance sector. Timely availability of data can strengthen the efficiency and effectiveness of banking operations.

CompleteFTP: A Solution for Secure File Transfer

CompleteFTP gives advanced access security features for financial services file sharing, applying intelligent measures to ensure secure access to sensitive data. The software is available in three editions - Standard, Professional, and Enterprise Managed File Transfer (MFT) - each with varying degrees of security features. Many large banking and finance customers use our Enterprise MFT edition as it best meets their security needs.

Facilitating Compliance with Regulatory Requirements

The banking and finance sector must comply with many regulations, including GDPR, PCI-DSS, and HIPAA. According to a report by SectigoStore, GDPR non-compliance fines can be up to €10,000,000, or up to 2% of the organisation’s total global annual turnover for the preceding financial year, whichever is higher [4]. For some severe data breaches, the penalty amount can be up to €20,000,000, or up to 4% of total worldwide annual turnover, whichever is higher [5]. Non-compliance to PCI DSS can result in large penalties ranging from $5,000 to $100,000 per month by the credit card firms [6]. The penalties levied shall depend on the volume of transactions and the degree of non-compliance. HIPAA violations can result in fines ranging from $100 to $50,000 per violation [7]. Secure file transfer solutions like CompleteFTP are crucial in meeting these regulatory requirements by implementing encryption, verification, and permission protocols. The Enterprise MFT edition also includes access monitoring, two-factor authentication, and auditing tools to further assist in regulatory compliance.

CompleteFTP is used by many banks and financial companies around the world. Examples of how it can be used include

Data Backups

Automate the secure backup of critical financial and customer data to remote servers or data centers. SFTP solutions ensures that the data is encrypted during transmission, reducing the risk of data exposure.

Batch Transactions

Transfer batch files containing multiple transactions or operations securely for processing. This is especially important for end-of-day or end-of-month financial reconciliation.

Customer Onboarding

Safely send customer identification and financial documents from branch offices to a centralized location for verification and processing.

Regulatory Compliance

As highlighted above you can use SFTP solutions to transmit sensitive data to regulatory bodies or auditors in a manner that complies with regulations like GDPR, CCPA, or HIPAA.

Inter-Bank Transfers

Facilitate secure transactions or data sharing between different banks, ensuring that funds and financial information are transferred securely.

Automated Report Sharing

Securely send financial reports, audit logs, or analytics data to authorized personnel within the organization or to external partners.

File Synchronization

Keep multiple servers synchronized with the latest data, ensuring data consistency across different systems within the banking network.

Vendor Communication

Use CompleteFTP for secure data exchange with third-party vendors such as credit rating agencies, financial institutions, or service providers.

Software Updates

Banks can use an SFTP server to securely download and distribute software updates and patches across multiple branches or ATMs.

Secure Email Attachments

CompleteFTP can be integrated with email servers to facilitate the secure attachment of sensitive or large files that can’t be sent using standard email protocols.

Employee Training

Distribute training materials and modules securely to employees across different branches, ensuring that unauthorized personnel do not have access to this material.

Document Management

Safely transfer legal documents, contracts, or internal policy documents to relevant departments or external legal teams.

Real-time Monitoring

Financial analysts can securely access real-time financial data feeds or market data for timely and secure analysis.

Financial Forecasting

Safely transfer large datasets to analytics platforms or business intelligence tools for financial forecasting and risk analysis.

Conclusion: The Fundamental Role of Secure File Transfer in Banking and Finance

The importance of secure file transfer in the banking and finance sector is undeniable. It plays a fundamental role in maintaining security, efficiency, and compliance in banking and finance operations. As cyber threats continue to change, financial institutions must invest in secure file transfer solutions like CompleteFTP to protect their data and customers from cybercriminals.

Enquire today to find out which edition of CompleteFTP is best suited for your business or institution.