When an individual or an enterprise employs the services, or uses the products of any financial institution, they are protected by the Gramm-Leach-Bliley Act or GLBA. This act is applicable to all financial institutions and has been enforced to protect customers' confidential information. The FTC or Federal Trade Commission presides over all institutions that provide loans, advice related to finance and investments or insurance. All loan brokers, debt collectors, entities who prepare tax returns, banks, real estate settlement service providers, non-bank mortgage lenders and real estate appraisers come under the purview of this act.
As per the GLBA compliance financial institutions have to implement security standards to protect the customer's information from unforeseen threats. The act mainly provides cover for collecting, disclosing and protecting customer's personal information. Thus it is extremely necessary for all financial institutions to implement a compliance management procedure that takes care of the security policies.
Importance of GLBA
It is not a simple job to handle a financial institution. Simply providing attractive offers is not enough to acquire and retain customers. It is also extremely important to safeguard customer information and ensure their security. Financial issues are highly sensitive and critical. Therefore organizations in this sector have stringent security measures to adopt. Effective compliance management software can be helpful in ensuring GLBA compliance to a large extent. Here are the features common to most GLBA compliance solutions in the market:
GLBA Compliance Management Software Features
1. Cloud based program using on-premise deployment procedures to help reduce large investments. With easily available cloud based services the returns are very high.
2. They reduce the time typically wasted on individual compliance processes, and therefore reduce management costs.
3. A centralized repository procedures handle the data efficiently by storing documents, evidences and processes in one place. Accessibility to this data is possible from any location and at any time.
4. With the help of centralized dashboards, institutions can have clear visibility of the compliance status that is being enforced across multiple units located globally.
5. They provide a web based secure interface for easy accessibility, management of workflow, inventory control and document management.
6. They conduct intranet scanning of information and integrate all information related to compliance from several sources and match them against compliance signatures.
7. They handle all activities that are relevant to compliance and compliance compliance regulation optimization by sending reminders.
8. They monitor and track movements to detect any loopholes and immediately set remediation processes in action.
9.They provide an exhaustive audit trail.
GLBA compliance has been beneficial to both customers and financial institutions. While the mandatory regulations of GLBA ensure a high degree of IT security, making financial institutions safer for customers, by ensuring compliance with GLBA financial institutions can win people's trust and attract more prospects.
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