As planners incorporate more technology into their offerings to clients, it’s imperative they stay on top of their cybersecurity measures.
“Cybersecurity is a major issue for financial planners in today’s highly technical, digital world,” writes Ben Lewis, FPA’s public relations team leader on an FPA Connect post calling for participants for a cybersecurity assessment that has since ended.
Anthony Stitch explains in the forthcoming August issue of the Journal of Financial Planning that planners who don’t provide the technology clients want these days may lose those clients to firms they like less but that offer the technology they prefer. This, he writes, is called digital attrition. Members, you’ll get to read the full article when it comes out. And if you’re not yet a member, maybe now is the time. Learn more here.
“As you incorporate more technology into the running of your firm, it’s important that you stay educated on best practices for cybersecurity,” Blane Warren, an industry leader in financial services marketing, compliance, and technology, writes on XY Planning Network’s website.
But planners this move toward providing more technology options means planners need to step up their cybersecurity game in order to keep their clients and themselves safe. Something they’re not currently doing very well, according to a report from External IT titled “Financial Services Firms Face Further Scrutiny of Their Cybersecurity Practices: Is Your Frim Ready?”
InvestmentNews reports that that report found three key areas were lacking in terms of financial cybersecurity: security policy, firms failing to audit their IT security; accountability when moving data, moving data to personal and home devices without tracking measures; and disaster recovery, not having emergency business continuity plans.
This isn’t to say that planners don’t want to address cybersecurity issues, rather they don’t know where to go to get their information, Brian Edelman, chief executive of Financial Computer Services told InvestmentNews.
Edelman recommends using a cybersecurity firm that understands financial services.
In a recent article, ThinkAdvisor recommended planners check out the following resources: National Institute of Standards and Technology (nist.gov) and the Financial Services Information Sharing and Analysis Center (fsisac.com).
Journal of Financial Planning