The Security Challenge in Selling to Financial Service Clients
Eric Jackson
Early-PayPal ?? Strategic Advisor & Tech Executive ?? Author of "The PayPal Wars" ?? #GirlDad
Docurated asked me what is the biggest challenge that firms face when selling to financial services clients today. Here's what I had to say.
"Security. Clients in financial services have greater security concerns than those in most other verticals because of the sensitivity of the data they’re working with and the frequent need to share information with outside parties. Add to this extensive regulatory compliance needs, and you can see why security is at the forefront of financial service firms’ minds when choosing a new product.
"This is why FinServe firms so often continue to rely on old and outdated software – it’s viewed as well-known and therefore safe, even though antiquated technology can pose a host of other risks.
"There’s no one silver bullet for addressing these concerns. At CapLinked, we’ve incorporated best practices into our product and our company’s procedures, and we’ve completed third-party audits to document this for clients. Since we sell enterprise sharing software that’s designed to keep data safe when it’s shared with outside parties, it’s crucial that clients understand the extent to which we go to embed security every step of the way."
Note: The entire piece from Docurated, which includes responses from other CEOs across different industries, can be found here.
Managing Director at Sortis Group, LLC FKA Guardian - Investment Banking. Real Estate
9 年Eric, I couldn't agree more with your assessment of today's data security compliance environment. Having executed over $16b (UPB) of performing and nonperforming loan sale trades in just the last five years as Deal Manager or Inside Lead, I can assure others that a financial institution's Data Security Manager will play a significant role in deciding which vendor to engage. The Vendor Approval process almost always begins with compliance reviews of Third Party Data Security Compliance such as PCI-DSS. Very few firms in the Financial Services industry take on this task in-house as the costs can run into the hundreds of thousands (I've heard one firm boast of spending $1M+ LOL). Smart firms will incorporate Caplinked secure data vaults with ERM (Electronic Rights Management), watermarking of downloaded files with user ID & IP address which far exceed Best Practices guidance and at a very reasonable cost.