Secure Communications and Your Wealth Management Clients
What do Wells Fargo, Voya Financial Advisors, LPL Financial, and Morgan Stanley all have in common? Data breaches, often involving their highest net worth clients.
It doesn’t matter whether the data breach occurred due to human error or if a cyber attacker exploited a previously unknown vulnerability. It doesn’t matter how quickly these companies notified their clients that their private information, sometimes including their bank account numbers, was out in the wild. It doesn’t matter whether the SEC, FINRA, or the European Union fined anyone for the data breach or even if law enforcement arrested the perpetrator. All of this happens after the fact.
All that matters is the data breach itself. One act destroyed every affected clients’ trust in their wealth management company. These people no longer ask themselves whether your company will grow their portfolio, help them plan for retirement, or identify the fabled unicorn IPO. Due to their prior experience, they must ask themselves whether they can trust you with their phone numbers, addresses, mother’s maiden names, government identification numbers, and every other piece of personal information required to hold an account with your institution or solicit financial advice. For them, these concerns come before they ask whether they can trust you with their money.
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Surveys bear this out.
In the wake of headlines like SEC Fines Voya $1 Million for Cybersecurity Breach and Morgan Stanley Breach: Adviser Accessed Client Data Countrywide, 2016 EY’s Global Consumer Banking Surveyreported that although the majority of consumers worldwide agree that banks play an importantrole in their lives, less than half trust their bank. As more details emerged about the Wells Fargo account scandal in 2018, the American Banker/Reputation Institute Survey of Bank Reputationsindicated a dip in the overall reputations of US banks with consumers.
Statistically speaking, it’s almost impossible that a scandal or data breach impacted everyone surveyed. These headlines influenced public opinion and continue shaping how your clients both perceive your institution and interact with it.
At Adeya, we understand that building trust is an essential part of your relationship with your clients. We provide secure communications collaboration and file sharing solutions to defense contractors, hospitals, financial institutions, and governments, among others. Trust defines us, too.
We believe that trust begins with secure, real-timecommunications.
Say Goodbye to Insecure Emails
According to the SEC, most successful cyber attacks start with a fraudulent email, i.e., phishing. Last year, enterprising scammers even sent emails posing as FINRA’s president and chief executive officer. The moral of this factoid: don’t trust email signatures.
Take the guesswork out of text-based communications by transitioning from emails to an encrypted messaging platform. Instead of wondering whether your French client reallysent that request or if it’s another attempt by an American-Nigerian phishing ring, call IT and ask them to check the logs.
Here’s a hint. If your client logged in with two-factorauthentication using the same cell phone they used last ten times they contacted you andthey sent the request from their home IP address, it’s probably your client.
This level of verification doesn’t exist for email. For starters, you can’t control your client’s email password policies. They may use two-factor authentication with a physical U2F security key or just password123. Most eight-year-olds can access the latter.
Build Trust and Improve Engagement with Your Clients
We won’t lie. Phasing out emails means changing your communication channels. People, including your clients and employees, hate change. Implementing a new communications app will not make you the office hero. It will give you headaches, heartburn, and irate managers screaming at you because they can no longer use the same password they’ve used for the last tenyears. Thisis the truth.
However, this also presents you with an opportunity to communicate with your customers about your new system, what you hope to achieve, and how real-time communications with their financial advisors will help them meet their goals. Furthermore, nine out of ten consumers prefer messaging to communicate with companies about their products. Opening up a mobile platform allows you to offer additional avenues for customer collaboration, including to-the-minute financial advice.
With a white-labeledsecure communication and collaboration app like Adeya’s, you can tailor the user experience for both your clients and your employees. By emphasizing end-to-end encryption and other security features, you will show your institution’s commitment to protecting your clients’ personal and financial information.
Explain that you understand clients may need to transmit sensitive information via secure electronic channels and that they may not always have time to stop by your offices. Present your new app as both a timesaver and a security measure while also emphasizing its real-time aspects.
Save time and money when you move to a paperless workflow, which also reduces manual entry errors. Make Adeya part of your digital ecosystem and enjoy simplified daily workflows and time savings while increasing your firm’s speed and agility.
Remember, when you send someone an email, they may not reply for hours or sometimes days. Texts, instant messages, and calls have a more instantaneous response.
Explaining your security measures, having an easy to use communications platform, and encouraging your employees to respond in real time will help you build trust with your clients. In the long-term, and encrypted communications suite combined with other security policies and protocols will help prevent your institution from becoming another data breach headline. This also allows you to advertise your clean record and take advantage of your competition’s security lapses.
Comply with Regulations
With GDPR, FINRA, and SEC fines for financial services data breaches on the rise, all customer communications and collaborations must be secured. Consumer messaging apps such as WhatsApp impose unacceptable risks on financial institutions because they are not regulatory compliant. These apps, downloadable by any employee with a mobile phone, do not create the required logs and audit trails. They do not archive messages as required by law. They also take your customer’s sensitive information outside your corporate umbrella and put it in unauthorized hands.
Employing an encrypted communications and collaborations app with regulatory compliant logs and audit trails protects both your bottom line and your reputation.
Let Adeya help you solve your secure communication and collaboration needs.
With our white labeled end-to-end encrypted communication and collaboration app, you can offer your clients secure SMS, messaging, calls, and file sharingat their fingertips. With just the press of a button, they can contact their advisor about a new investment or an update on their retirement goals.
When your advisors and other employees exchange client information, it will remain under your company’s sole control.
Whether communications originate with your clients or internally, all will comply with data protection regulations and become part of your archives. All access will follow your authentication policies, including password policies and multifactor authentication.
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