The Necessity of Email Archiving for the Financial & Banking Industry – Top 7 Advantages

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The Necessity of Email Archiving for the Financial & Banking Industry - Top 7 Advantages

In July 2010, the Dodd-Frank Wall Street Reform & Consumer Protection Act came into being in the United States of America. What happens in the USA becomes a blueprint for other countries and markets to follow.

This act came into being in response to the 2008 financial crisis. The crisis forced industries to act following laws, regulations, compliances, and accountability. 

Since the financial and banking industries caused the crisis, they have become highly regulated.

The Dodd-Frank Wall Street Reform & Consumer Protection Act allows regulators to thoroughly monitor an enterprise’s functioning. 

It’s no different in India, where financial services regulators like RBI, SEBI, and IRDAI are getting stricter with the businesses to reduce the chances of fraud and scams.

Since emails carry bulk of the critical digital communications, regulators need access to all active and legacy emails for thorough monitoring.

To reduce legal and compliance-related risks, companies in the financial and banking industries need to preserve a copy of all their emails in a long-term search-ready form.

What is Email Archiving?

Email archiving is the process of preserving all your essential company emails in a tamper-proof, immutable format that is easily accessible to you.

The archived emails are protected in an independent infrastructure separate from your email solution provider’s infrastructure, thus adding a layer of redundancy and security.

Hence, even if there is a disruption in your company’s email service, important emails are lost, a virus corrupts the systems, or a cyberattack, the archived emails are still safe. 

Today, most email archiving is done on cloud platforms, adding a layer of security and increasing ease of access. Plus, you have the freedom to choose a separate vendor for your email archiving needs.

Email archiving also records the metadata increasing the importance and validity of financial email archiving. 

Advantages of Email Archiving for the Financial & Banking Industry

Compliance readiness

The most significant advantage of email archiving for enterprises in the financial and banking industries is helping them comply with regulations like RBI, SEBI, and IRDAI, which require long-term data preservation.

Proactively meeting compliance requirements reduces business risk and keeps regulatory authorities from breathing down their necks.

Scalable cloud email archiving for the financial industry can help preserve email data long-term and offer rapid discovery and extraction tools to enhance audit readiness.

Also, cloud data management platforms that support an integrated compliance management workflow ease the job of seeking external expert reviews on potential breaches.

Litigation readiness

Growing litigations are part and parcel of operating in the financial and banking industries.

According to Fullbrights’ Second Annual Litigation Trends Survey, 90% of enterprises face litigation at some point.

Thus, facing litigation is almost inevitable.

Businesses can improve litigation readiness if they can find and present evidence quickly, accurately, and in a form acceptable to the courts.

Cloud email solutions for the financial industry where the data preserved is immutable with an intact audited chain of custody can pull up data for electronic evidence.

Accurate and fast ediscovery with an in-built workflow to support internal legal reviews can help case management.

The correct email archiving solution for the financial industry can reduce litigation costs and protect against frivolous law suits.

Automated Data preservation

The correct email archiving service for the financial industry automates data capture based on industry regulations, laws and an enterprise’s data protection policies.

Besides increasing productivity, automatic archiving using journaling reduces the scope of human errors in data preservation initiatives.

Since this process ingests a copy of all transacted emails in real-time, it is agnostic to what happens to the emails after delivery to the users’ mailboxes.

In other words, the financial services institute is assured of a 100% capture of all emails, thus improving compliance confidence, and delivering peace of mind.

Related: Building data resiliency for the financial services organizations

Secure from Interference

Enterprises can experience the benefits of a robust security system that protects their critical data by choosing cloud-based email archiving meant for the financial industry.

Cloud-native solutions like Vaultastic leverage the shared security model of public clouds like AWS to deliver robust security “OF” the cloud and “IN” the cloud.

Security OF the cloud includes all infrastructure elements like compute, storage, network, and more. And security IN the cloud includes security controls deployed at various layers of the stack, including strong encryption, role-based access, WAFs, and many more controls.

This multi-layered security makes the solution bulletproof, and the 256-bit encryption makes the data useless even if it gets into a hacker’s hands.

Thus, the archived data is immutable, tamper-proof, and highly durable during its stay in the cloud.

Advanced eDiscovery for Quick Access

Time is of the essence during audits conducted by regulatory authorities.

Modern data archiving solutions enable immediate access to the indexed data with advanced ediscovery tools.

Powerful search tools that can scan the preserved data across any period with complex query formations find relevant results in seconds and minutes rather than hours and weeks, thus saving valuable time. Saving queries for reuse add to the productivity boost.

New-age email archiving solutions for the financial industry also support boolean query constructs to help narrow search results to the exact requirement.

Responding rapidly to audit queries indicates to the auditors that your data management systems are technically advanced, organized, and in adherence with the regulatory guidelines – adds brownie points for your brand image.

Business Continuity

Imagine that the email system is out of order or inaccessible and business communication has come to a halt.

Such downtimes can cost a financial or banking enterprise dearly.

Each year, IT downtime costs enterprises a staggering revenue loss of $26.5 billion.

Worse still is the loss of reputation.

A robust email archiving solution with self-service and in-built disaster recovery can help restore communication operations in minutes.

Users can view all their emails using self-service access, continue to respond to earlier emails, and even send out new ones.

These email transactions maintain the primary brand and email domain, ensuring no change in how the recipients receive or perceive the communications.

Business Transparency

In financial and banking, transparency is the key to trust and reputation.

An enterprise can review archived data to gain insight into their business communication to help prevent financial discrepancies and vulnerabilities to fraud, detect poor trade practices, and identify improvement areas.

Email storage solutions for financial and banking industries lets an enterprise tap into the power of big data for business intelligence. 

Email Archiving Solutions for the Financial & Banking Industry

You can get these advantages and more through Vaultastic’s email archival solution if you are an enterprise operating in the financial and banking industries.

Leading brands and your peers trust the robust, agile, and affordable Vaultastic cloud-based email-archival solution.

Sign-up for a 30-day free trial of Vaultastic and experience the freedom of being always audit-ready.

Talk to our Expert

Suppose you need more information on email archiving solutions for the banking and financial industries, schedule a free consultation with our archiving experts. They understand your challenges and give a complete rundown of how our solutions can help your enterprise overcome these challenges cost-effectively.

Want an in-depth discussion?
Our archival experts are ready to talk to you, one on one to suggest archival best practices, to help you manage email storage better, learn how to make use of all the archived business email for business intelligence and stay ready for regulation compliance.
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