The significance of SOC 2 attestation (and why we pursued it)
Data security has always been pivotal in the IT/digital services industry, but with more organizations and their customers concerned about the protection of their personal data, fintechs must be ready to step up to the plate.
If you’ve ever dealt with or manage consumer data as part of a product/service, chances are you’ve heard of SOC 2. And while it sounds more like the name of a NASA space station and less like a component of data security, SOC 2 is important to organizations like ours that are entrusted with consumer data and insights.
For most companies considering working with a SaaS or fintech provider, SOC 2 is often a crucial component when looking at a service provider’s operations. After all, when you give data, you expect something in return—like security and compliance.
Though pursuing a SOC 2 attestation is voluntary, here at Sensibill we take the protection of customer data seriously, which is why we proactively pursued SOC 2 attestation.
But what is SOC 2, and why does it matter to us? Let’s take a closer look at SOC 2 and why we pursued it.
What does SOC 2 entail?
Before diving into why SOC 2 is so important to us here at Sensibill, it helps to understand what goes into receiving a SOC 2 attestation.
In a nutshell, SOC 2 is an auditing process that ensures a service provider securely manages data to protect clients and the privacy of their customers. A third-party accreditor, certified by AICPA (American Institute of Certified Public Accountants), is responsible for performing the auditing procedure, and effectively measures the service provider against rigorous compliance standards.
Only when a third-party auditor can validate all findings that a service provider does indeed meet those standards, is the provider given SOC 2 attestation.
SOC 2 attestation has two components: Type 1 and Type 2.
Type 1 looks at a point in time, whereas Type 2 looks at a period of time (typically 12 months or more). The difference between both is important, as Type 1 will only look at one or two months of compliance, but Type 2 takes into account a much longer period of time during which a service provider has been compliant.
Many companies will continuously pursue Type 1, as the process and work involved is not as significant as Type 2. However, Type 2 shows a high-level of maturity in the controls, procedures, and standards a service provider has in place to protect its clients’ data.
At Sensibill, we hold both SOC 2 Type 1 and Type 2 attestation. This means we have been accredited by a third-party professional organization.
Why is SOC 2 important to us?
At Sensibill, we provide innovative solutions that enable financial institutions to harness powerful SKU-level data so they can better know and serve their customers. And, as a service provider dealing with data, it’s important that our operations handle that data with rigorous standards in place.
For our clients, our having a SOC 2 Type 2 attestation provides both transparency and visibility into our operations and practices, signaling that we can be entrusted with data and that a third-party has accredited us to be so.
SOC 2’s role in data security
Perhaps more than ever, consumers demand to know how their data is being used and protected—especially as more financial services go digital and mobile tools are used to handle everyday financial needs. Institutions and fintechs must be prepared and readily able to answer their customers’ questions, ease their concerns, and offer transparency if they want to maintain trust with those customers.
Additionally, using digital to provide new levels of visibility around customers’ financial activity and help them monitor everyday spend can quickly build trust, but it can also lead customers to question how their data is protected.
With SOC 2 Type 2, our clients can trust that we take their (and their customers’) data security and privacy seriously, and that we operate with a data security mindset at all times—not just in the products and solutions we build, but in everything we do. This allows for greater trust with their own customers and makes harnessing data for deeper customer insights safe, secure, and effective.