Managed File transfer (MFT) is an integral part of the bank’s operational framework. The solution is essential for banks and financial institutions to protect sensitive data and meet compliance regulations. File transfers requirement ranges from sending files within the organization, interacting with the vendors, other stakeholders, uploading data to the website and sending critical reports to Central bank. There are cases where manual file transfer proved to be inefficient which can lead to potential data loss, sending the wrong files and time consumption during the transit and the least, not sure about the delivery and accuracy of the send files Below are the listed reasons for the IT decision makers to evaluate in implementing a managed file transfer system in banks.
- Use of easily available file sharing system like dropbox
IPSwitch data protection survey reveals that 53% of the respondents admit to sending sensitive files over unsecured email. Employees tend to use the system which is convenient to them. In the case of file transfer file sharing, systems like Dropbox, Microsoft OneDrive, Google Drive, Apple iCloud and Amazon Cloud Drive and other systems are widely used. According to a recent survey of 1300 business users, one in five are using Dropbox to transfer corporate files, effectively circumventing any safeguards their IT departments have put in place with respect to file transfers. The reasons for such shortcuts are generally due to growing file sizes and pressure to get job done quickly. Managed file transfer can centralize the entire system of file transfer that enable features like control of the file, LDAP authentication, robust password policies, rules for IP / user lockout and many more.
- Poor visibility of the file over the file transfer system
The Gramm-Leach Bliley Act (GLBA), Sarbanes-Oxley 404 and 409 (SOX), and the Dodd-Frank Wall Street Reform and Consumer Protection Act all require banks to have clearly outlined internal procedures that define how the integrity and security of private data will be maintained, including when data files are in transit. Every file transfer needs to be visible in order to understand what document was sent, where was it sent, was it received, and when and how did it get there? And right now, this very minute, what is the real-time status? Essentially a tool to monitor, manage and audit transfer trial of files across the enterprise will enable in time saving and opportunity cost.
- IT team is not getting larger
IT department has the responsibility of file transfer where it carries operational risks such as control access, ensure accuracy, reduce complexity and manage costs. According to a recent Aberdeen study, the volume of file transfers is increasing, on a yearly average, by 11%.; the size of files by 7% , and the number of users transferring files by 6-9%. All while IT hiring goes up by a paltry 2%. The average is all across the industries. As the operations expanded, the number of file transfers completed each day had grown by a multiple of 100 on a YOY basis. IT pros views the manual approach to the file transfer similar to sitting in traffic. The company is growing and so are the business partners. The file transfer must keep up with the increasing demands around volume, performance, reliability and security.
- Tool to respond to security incidents
4 out of every 100 file transfer results in error exceptions or problems. Security and compliance incidence in file transfers increased about 4% YOY. Do you have right tools to respond if your file transfer system interrupts during the peak data volumes? Does the file transfer system respond to events in real time? 65% of the Managed file transfer purchase has cited productivity as the primary reason to nod for the solution where MFT has tools to respond to events in real time and features like Encryption and anti-virus support are critical for managed file transfer system. Above all managed file transfer provide visibility of the file during transportation and rest to IT.