File Sharing for Financial Services
Let’s jump in and learn:
- What Is a Secure File Sharing Solution?
- Simplify Secure File Sharing for Your Financial Services Firm
- Regulations Governing Secure File Sharing for Financial Services
- How Financial Institutions Use File Sharing
- Why Choose Egnyte as Your Next EFSS Solution?
- File Sharing for the Financial Services and Banking Industry
What Is a Secure File Sharing Solution?
Secure file sharing for financial services is the process of sending, receiving, or collaborating on sensitive information created or collected by financial services institutions. The objective of file sharing for financial services is to protect sensitive financial, proprietary, and personally identifiable information, or PII, where it resides—at rest and in transit.
Secure file sharing for financial services is enabled with security protocols that encrypt data and require authentication before the information can be accessed. To support secure file sharing for financial services, the following standard protocols are used to provide encrypted file transfer.
- File Transfer Protocol Secure (FTPS)
File Transfer Protocol Secure, or FTPS, is an extension of File Transfer Protocol (FTP) that supports Transport Layer Security (TLS) to provide secure transmissions. It enables secure file sharing for financial services partners, users, and customers. However, FTPS is considered defunct as it has been broadly replaced with SFTP.
- Hypertext Transfer Protocol Secure (HTTPS)
Hypertext Transfer Protocol Secure, or HTTPS, enables secure file sharing for financial services by providing secure connections between websites and users’ web browsers. HTTPS offers multiple layers of data security to protect sensitive information, including authentication, data integrity, and encryption.
- Secure File Transfer Protocol (SFTP)
SFTP, or Secure File Transfer Protocol, is an encrypted network protocol that enables secure file sharing for financial services. SFTP uses a Secure Shell (SSH) connection to encrypt files in transit, providing high security for sending and receiving file transfers. Like FTPS, SFTP uses AES (the Advanced Encryption Standard) and other algorithms to protect sensitive data as it moves between users, systems, and services.
Other technologies used to support secure file sharing for financial services are:
- Cloud file sharing
Cloud file sharing is offered as a service to provide access to multiple users simultaneously. A common set of files is stored in the cloud with permissions granted to individual users or groups. Administrators control access based on security protocols established for secure file sharing for financial services.
- Peer-to-peer (P2P) networks
Peer-to-peer networks, or P2P file sharing, is a group of two or more computers that can be used for secure file sharing for financial services. The computers are connected and can share files between small groups without requiring a central server.
- Virtual data rooms (VDRs)
Virtual data rooms, or VDRs, are secure online platforms that can be used for secure file sharing for financial services. VDRs are considered the most secure file-sharing solution, because of the granular access control that is available to control access to sensitive information.
Every type of solution for secure file sharing for financial services comes with different security features to protect sensitive data. Key data protection features of solutions for secure file sharing for financial services include the following.
Data encryption is at the core of most solutions for secure file sharing for financial services. Data encryption aims to protect sensitive information by rendering it unreadable without a decoder that is only accessible to authorized users or systems. The idea is that even if the system that holds the sensitive data is compromised, the information can not be accessed. When assessing solutions for secure file sharing for financial services, selecting one that uses strong encryption (e.g., PGP, AES) rather than weak encryption (e.g., WEP, DES) is important.
Multi-factor authentication (MFA)
Multi-factor authentication, or MFA, provides a layered approach to secure file sharing for financial services. It requires two or more forms of authentication before a user can access data and applications. To authenticate, a user has to present a combination of two or more verifications, such as user name/password and a one-time password (OTP) or biometric scan (e.g., facial, fingerprint, retinal). MFA is an effective way to ensure secure file sharing for financial services, because even if a user’s credentials are stolen, an unauthorized user cannot access the targeted physical space, computing devices, networks, or databases.
Permissions-based user roles
System administrators use permission-based user roles to enforce secure file sharing for financial services by controlling access folders and documents. By limiting access to sensitive information, permission-based user roles keep sensitive information safe from unauthorized access even within the organization.
Much like administrators may be able to control which users can view and/or edit certain documents or folders, this added security feature also makes it possible to control who can download and print certain documents. Specifically, administrators can mark certain files or folders as View Only to specific users, meaning they can only open the document—they cannot print, edit, or even download it.
Digital watermarks can be either visible or hidden on a document. The purpose of adding visible watermarks to an electronic document is to remind the person viewing the document that the information is sensitive, that unauthorized copies are not permitted, and that the information should not be shared with unauthorized users. This helps to deter any intentional or even unintentional sharing of information.
The watermark itself may contain personally identifiable information so that in the event that the document is printed or shared without authorization, it’s easy to determine the source of the leak.
Audit logs provide a detailed record of all users’ activity to support secure file sharing for financial services. The purpose of audit logs is to give details about what users are doing with sensitive information. Audit logs can also be set to trigger alerts when unusual activities are detected, such as multiple failed login attempts. Data collected in audit logs of user’s activities include:
- Actions that were taken (e.g., read, edit, print, share)
- Dates and times of logins
- Files that were accessed
Simplify Secure File Sharing for Your Financial Services Firm
Secure file sharing for financial services should be easy to manage and use. Key capabilities that simplify secure file sharing for financial services firms include support to help users and administrators:
- Collaborate easily to accelerate contract workflows
- Control access to files with permission-based access controls
- Encrypt data in transit and at rest
- Manage file collection requests
- Provide centralized access to the latest version of documents
- Securely gather and store files and interactions
- Streamline client document review and approval
Regulations Governing Secure File Sharing for Financial Services
Any secure file sharing for financial services must help administrators adhere to strict compliance requirements. Among the many regulations that a secure file sharing for financial services solution must address are:
- Financial Industry Regulatory Authority (FINRA) rules
- Gramm-Leach-Bliley Act (GLBA)
- Payment Card Industry Data Security Standard (PCI-DSS)
- Sarbanes-Oxley Act (SOX)
- Securities and Exchange Commission (SEC) rules
How Financial Institutions Use File Sharing
- Automate document archiving and retention policies
- Document file access and usage
- Enable rapid responses to requests for files
- Ensure file share security
- Meet customers’ expectations for file-sharing capabilities
- Request files for account opening, loan origination, and exception management
Why Choose Egnyte as Your Next EFSS Solution?
Egnyte’s EFSS solution is trusted by thousands of IT leaders and used by millions of end users. It has the critical capabilities required to effectively and efficiently support secure file sharing for financial services, including the following.
Complete control and visibility
Egnyte enables secure file sharing for financial services by providing complete control over folder access and real-time visibility into all user activity. Administrators can add or revoke permissions to any folder or sub-folder. In addition, all data usage, file history, and user activity can be monitored and reports easily generated. Egnyte also helps administrators manage data with a rich set of controls, including a trash retention policy, file versioning, link controls, shared folder notifications, and desktop sync enablement.
Compliant file sharing for financial services
Egnyte’s EFSS solution provides secure file sharing for financial services with a reliable way to share confidential documents while complying with regulations, such as FINRA, SEC, GLBA, SOX, and PCI-DSS.
Protected file access with sub-folder permissions
Egnyte offers secure file sharing for financial services with enforced user authentication and folder permissions. Files can be accessed from any location or access method (e.g., web browser, mapped drive, secure FTP, desktop sync, mobile/tablet app). And, access is regulated by the administrator, who grants users permissions to specific folders and subfolders based on their unique requirements.
Secure and resilient cloud content repositories
Egnyte’s SSAE 16-compliant data centers provide redundant storage across multiple locations, allowing maximum uptime and availability. It also supports secure file sharing for financial services with rich data protection features to protect information at rest and in transit with encryption, granular permissions for access, and multi-factor authentication.
File Sharing for the Financial Services and Banking Industry
The types of data handled by the financial services and banking industry are some of the world’s most sensitive. Therefore, the utmost care must be taken to protect data for secure file sharing for financial services. These protections give customers the peace of mind of knowing that their sensitive information is safe and meets compliance with the many regulations governing financial services organizations.
Egnyte has experts ready to answer your questions. For more than a decade, Egnyte has helped more than 16,000 customers with millions of customers worldwide.
Last Updated: 3rd October, 2023