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Financial Services

How Digital-Only Banks Safeguard Data

How Digital-Only Banks Safeguard Data

In the agile landscape of finance, a new breed of financial institutions are at the helm—digital-only banks. Digital-only banks operate exclusively online, leveraging advanced technologies and the cloud to deliver a seamless, efficient, and convenient banking experience for consumers. These types of banks set themselves apart with their stringent focus on cybersecurity to ensure the safety of their sensitive data and information as well as their customer’s.

The Cloud Is King

At the center of digital-only banks’ operations lies advanced Cloud technology. The Cloud serves as the backbone for their entire infrastructure, enabling the storage, processing, and accessibility of vast amounts of data, all in real-time. It offers them several advantages, including:

  • Scalability and Flexibility: The Cloud allows digital-only banks to seamlessly scale their operations based on consumer demand. As their customer base grows, they can effortlessly expand their infrastructure and accommodate increased data storage and additional processing needs.
  • Cost-Efficiency: Operating in the Cloud eliminates the need for significant overhead and upfront investments toward physical infrastructure. Digital banks can optimize costs by paying only for resources as they are consumed, making them highly cost-effective.
  • Enhanced Performance: Cloud platforms can provide high-speed processing capabilities, ensuring that transactions and other banking operations are executed swiftly to deliver an optimal customer experience.

Prioritizing Cybersecurity

For digital-only banks, safeguarding data and mitigating risks against cyber attacks is paramount. These banks employ a robust set of cybersecurity measures to protect their data and their customers’ data. Key cybersecurity practices digital-only banks typically use include:

  • Encryption & Multi-Factor Authentication (MFA): All data exchanged between users and the bank’s servers is encrypted, making it unreadable and unusable to unauthorized individuals trying to steal data. Additionally, MFA adds an extra layer of security by requiring all users with access to the banks’ internal system to authenticate their identity through multiple factors, such as passwords, biometrics, or one-time passcodes, enhancing protection against unauthorized access.
  • Continuous Monitoring and Threat Detection: Advanced monitoring systems are employed to constantly analyze network traffic and detect unusual activities that may pose a security threat. Automated alerts and real-time responses aid in quickly addressing any suspicious activities.
  • Security Audits: Digital-only banks also conduct regular security audits to identify potential vulnerabilities and weaknesses in their systems. These audits help to address security concerns and enable them to stay ahead of evolving threats.
  • Employee Training and Awareness: Employees are regularly educated about cybersecurity best practices and are kept up-to-date on the latest threats. Training includes identifying phishing attempts and other social engineering tactics.

The Perfect Partnership

Digital-only banks are playing an increasingly significant role in the financial industry. As they continue to innovate and grow, they need an expert partner to rely on that is agile and reliable. Thrive’s team of dedicated experts can help these banks continuously monitor for threats and vulnerabilities, 24/7. Additionally, these banks can take advantage of Thrive’s secure Cloud solutions, which can enable them to complete data transfers and transactions at lightning speed and store sensitive customer data safely.  

Contact Thrive to learn more about how we can transform the security and storage infrastructure of your digital-only bank, today.