Technology has advanced significantly in the past decade, and with the complexity and need for regulatory and security compliance has also increased. Talking about the fintech companies such as banks and other financial institutions, they are in such a business where they are required to constantly store and interact with the most sensitive consumer information.

Hence, the financial institutions are needed to have a standardized framework which verifies that the partners they work with are securely handling the information of their clients.

However, the SOC 2 audit report is commonly known as the best compliance for fintech companies, and it is also viewed as a gold standard compliance indicator, especially for the fintech industry. It has been developed by the AICPA (American Institute of Certified Public Accountants), and the SOC 2 information security standard is an audit report which is provided on the examination of controls including –

• Security
• Availability
• Confidentiality

In today’s times, most of the fintech companies understand the value of security and claim they are 100% secure. But that claim doesn’t hold any weight without some concrete and objective proofs such as a SOC 2 report.

However, the SOC 2 report is generally a long and rigorous process, and it is not just long and rigorous, but it is self-imposed and is also pursued by the companies that take their customers’ data security seriously. But the SOC 2 report can vary between the companies. This is because of the organizational differences the companies have. However, it is also evaluated based on multiple criteria for making sure that the company follows strict IT security protocols for the purpose of protecting their systems as well as their clients’ important data from unauthorized access. It also ensures that such companies minimize the incidents’ impacts whenever needed.

Well, there are numerous reasons why fintech companies need to be proactive about having SOC 2 compliance or becoming SOC 2 compliant. But the most critical reason among all the reasons is that it shows a higher level of information security framework in place. So, whenever any financial institutions search for collaborating with a fintech partner, they will always look for such companies that take the clients’ data security and information security seriously.

Moreover, when a fintech company is SOC 2 compliant, then it also shows that the company has put in its valuable resources to ensure that they have upheld a high standard of security for their partners.

• Banking institutions and financial institutions have such data that contains some of the most sensitive information, but if such important information is mishandled, then it can cause significant losses in terms of money. In fact, not just the monetary losses, but it can also cause long-lasting reputational damage to the fintech companies. 
• A report by IBM also found that the financial industry, especially the fintech companies, has the second-highest average cost of a data breach among all the other sectors.

For instance, there is the infamous case of the Equifax data breach which took place in 2017, and it did cost the credit bureau giant around $700 million. Well, it happened due to failures to follow security protocols.

Moreover, in the same IBM report, it is also stated that 38% of data breach costs incur from lost business shares, and this cost includes:

• The increased cost of customer turnover,
• The lost revenue which happened due to system downtime, and
• The cost that has been incurred for new customer acquisition.

When your fintech business is SOC 2 compliant, then it can add an extra layer as well to customer trust. In fact, a SOC 2 compliant company also significantly suffers less from a data breach than other companies, and they also need to bear less substantial incurred costs.

However, not just financial losses could be better, but at the same time, your brand reputation and equity will also be much better as compared to the companies that aren’t SOC 2 compliant. That means ultimately SOC 2 compliance will bring in more business for your fintech business.

Today, the financial institutions are favoring fintech companies for delivering more functions and increasing their service offerings. Hence, in such a time, they are incredibly selective when it comes to choosing the fintech companies that they want to work with.

However, with countless fintech companies out there, SOC 2 compliance will allow any fintech company to stand out among all the non-SOC 2 compliant competitors, which will ultimately give those financial institutions the confidence that they need.

So, in today’s world, where frauds, data breaches, and cyberattacks have become so common, SOC 2 compliance is a solution for any fintech company that wants to stay relevant and ahead of the competition.

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Information security is important for the healthtech industry because no one wants to work with an at-risk healthcare provider. However, if someone is looking to use your healthtech services, then they would want to know how secure your healthcare organization actually is.

Well, you may think that you have a secure healthcare organization, but this is not always the case. With more and more healthcare security breaches being reported to the HHS, it has become more important than ever for covered entities and business associates to demonstrate their commitment to keeping “protected health information” secure while providing top-quality healthcare services and putting their patients’ well-being first.

What is SOC 2 attestation?

A SOC 2 attestation is a valid third-party assessment of a company’s controls against the five Trust Service Criteria – Security, Availability, Processing Integrity, Privacy, and Confidentiality.

It is ideal for both covered entities and business associates that want to reassure their clients that the information they provide is secure, available, and confidential. Hence, it has become increasingly common for organizations to require their vendors to be SOC 2 compliant. Such organizations ask for SOC 2 compliance to ensure that the healthcare organizations they work with have strong security measures in place.

A SOC 2 audit addresses third-party risk concerns by evaluating internal controls, policies, and procedures that directly relate to the Trust Services Criteria.

This means that a SOC 2 audit report focuses on an organization’s non-financial reporting controls related to:

• Security
• Availability
• Processing Integrity
• Confidentiality
• Privacy

Security – Is the system you’re using protected against unauthorized access?

Availability – Is the system being used available for operation and use as agreed?

Processing Integrity – Has the system processing been completed, and is it valid, accurate, timely, and authorized?

Confidentiality – Is the information designated as confidential actually protected as agreed?

Privacy – Is the personal information collected, used, retained, disclosed, and destroyed in accordance with the entity’s privacy notice?

The responsibilities of covered entities and business associates vary, and a healthcare organization will generally choose to be evaluated against the security, availability, and confidentiality categories. If a client cannot be assured that you have reliable and secure processes for protecting protected health information, they are unlikely to work with you.

Why Should Healthcare Organizations Include the Privacy Category?

In addition to security, availability, and confidentiality, it may also make sense for healthcare organizations to include the privacy category in their SOC 2 audit.

Let us explain this with an example.

Consider a doctor’s office. What is one of the first items the receptionist hands you? A “Notice of Privacy Practices.” This is because you are about to disclose personal information about your medical conditions to a medical provider. In addition, you provide other personal information such as:

• Your date of birth
• Insurance information
• A list of medications you are on

Now, imagine if the doctor’s office shares that personal information with a marketing company that wants to advertise new prescriptions to you.

What if the doctor shares this information with a research organization conducting research on treatments for your condition? Or shares it with other medical providers or insurance companies?

You should be informed about who your personal information is shared with.

What Are the Benefits of SOC 2 Compliance for a Healthcare Organization?

When a healthcare organization goes through a SOC 2 audit, it demonstrates that the organization has invested time, money, and effort into providing secure services while remaining committed to protecting clients’ PHI.

Your organization’s reputation, business continuity, competitive advantage, branding, and patients’ health all depend on the quality of your services and the security of your systems. This is why the healthcare industry can benefit from SOC 2 compliance.

• The healthcare industry is built on customer trust. If clients cannot trust your services, they will not choose to use them. If a patient is harmed due to a lack of due diligence, the impact on their health and livelihood can be severe.
• If your organization has faced a data breach, the negative impact on its reputation can be significant. If PHI is exposed, organizations often face operational obstacles, fragmented security, lawsuits, fines, and loss of patient trust. Patients may also be exposed to life-threatening consequences.
• Hence, the continuity of your healthtech business and your patients’ well-being largely depends on securing your systems through SOC 2 compliance.

If you pursue SOC 2 compliance and achieve a SOC 2 attestation, your healthcare organization gains a strong branding tool, allowing you to market your services as reliable and secure.

When you partner with an auditing firm such as Socly.io that educates you and performs a thorough, high-quality audit, you gain a valuable competitive advantage.

If your competitors do not have a SOC 2 audit report, you are already ahead. Even if they do, it is important to understand whether they underwent a quality audit.

Understanding what defines a quality audit allows you to explain to prospects why your SOC 2 audit report is more valuable than that of your competitors.

Having a SOC 2 audit report from a licensed and quality-driven firm opens access to a new marketplace of knowledgeable prospects who prioritize security and seek SOC 2 compliant vendors.

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