The Significance of the annual SOC Certification for MSPs – FinTech’s Unappreciated Paradigm

The Significance of the annual SOC Certification for MSPs - FinTech’s Unappreciated Paradigm

The Significance of the annual SOC Certification for MSPs – FinTech’s Unappreciated Paradigm

13th April, 2021

Living in a post-Dodd Frank and Reg SCI era, the concept of stringent regulation and auditing within financial technology is all but ground-breaking. However, less understood within these realms is the intense scrutiny and ever-increasing requirements placed upon Managed Service Providers to surpass both Service Organisation Controls (SOC) obligations and expectations.

SOC is an audit, a business and security examination performed by an independent firm over a period of several weeks or more, which results in a written report. Of course, with digitised globalisation, a focus on cybersecurity is commonplace for many firms across all industries. However, when considered in the context of financial services, the very nature of the data within the markets leaves these firms much more susceptible and consequently vulnerable to cybercrime and espionage. It is unsurprising with rising security attacks, the industry trends forecasted for the coming decade see the continuing upward trajectory of SOC expectations.

Perhaps, to best understand from an MSPs perspective, it’s useful to break this down into a simple hierarchy. The MSP is servicing an organisation such as a bank, and this bank will then service end customers.  End customers and regulators have certain expectations and requirements placed on that bank, just as that bank will have greater expectations and regulators will have greater objectives placed on that MSP. So, although all components in this chain have a responsibility to their clients and regulators or governing bodies, the stringency, and scrutiny of this regulation, expectation and the requisite to ‘prove it’ increases with each link.

Hence the importance of SOC cannot be underestimated, reports are independently written, internationally recognised, and are very highly regarded in the Financial sector. In today’s society, they are imperative for the firm to survive; their absence poses a major barrier to entry as there must be evidence that your financial institution is safe and secure to deal with. Although many industry regulations prevail de jure it is ultimately in any financial institution’s best interests to partner with an MSP operating at the highest levels of SOC accreditation. At Options, it enables us to deliver the highest level of security assurances, in a recognised format, to all our clients and partners. These assurances can assist clients with their own regulators and help grow their business.

Some examples of the variety of different flavours SOC reports come in, depending on factors such as scope and duration.

Options concept of an Automated Security Operations Centre blends our best-in-class automation capabilities with our unique insight of financial sector requirements built from years of experience. This comprehension of absolute security provides your firm the ability to operate with agility, respond to demands in the market, all under the blanketed assurance of SOC accreditation. Please get in touch with our team today to learn how we can deploy our industry-leading managed security services within the fintech world to you.

– Harley Semple, Options Technology

Options is proud to have been awarded SOC certifications for ten consecutive years, for further information on our SOC offering or to view our latest SOC report please click here.

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