Cloud Data Integration Requires SOC2 Considerations for Financial Businesses

Financial organizations often find it difficult to locate data integration services which meet all of their data and regulatory needs. With more complex and stringent security needs than other industries, financial organizations find themselves walking a tight rope between data accessibility and protecting their customer’s sensitive data. This issue becomes even more critical given the increasing amounts of data that financial organizations wrestles with daily, plus customer demands for better data accessibility while maintaining an elevated level of data security. A great way for financial businesses to achieve this balance is by looking to cloud data integration service providers that conform to SOC2 standards.


SOC2 Can Be Confusing


As SOC2 becomes the popular new regulatory concern of many financial organizations (slowly aligning with, and in some cases replacing, the more well-known SAS70 compliance rule set), IT management and organizational security postures must take these regulations into account as well. While I’m sure many of you reading this understand at least the basics of SOC2 standards, there are some important aspects here that you will need to know in order to make better informed decisions on a data integration service.

SOC2 compliance is gaining in popularity largely because of how technology is advancing and because of the increasing number of technology service organizations which are now subjected to regulatory auditing. According to NDB Accountants & Consultants, there are five key points of SOC2 that organizations must educate themselves about, including how they pertain to any financial institution looking to engage a data integration host.

  1. Distinguishing between SOC1 or SOC2. The most important of these points is for an organization to know which SOC level the prospective service provider falls under. This will ensure correct compliance.
  2. Understanding the differences between SOC2 Type 1 and SOC2 Type 2. This is another point that is of utmost importance when looking at data integration providers. The SOC2 assessments differ pretty significantly between the two of these. Type 1 assessments are only for a specific date while Type 2 assessments cover a minimum period of six months. Knowing what your organization needs is important here, especially given the regulatory strictness that financial services organizations face.
  3. SOC2 Reporting and Trust Services Principles (TSP). This is a set of advisory services which comes with criteria based information. This is used to assess service organizations. Knowing this creates a new set of variables when engaging with a potential data integration solution host.
  4. Policies and Procedures. As the NDB states, this is perhaps the largest challenge-facing service organization. It is important for businesses to ensure that any data integration host has appropriate levels of documentation for all aspects of the project, including implementation, maintenance, usability and most importantly, security.
  5. Supporting documents require a fixed fee. We have found that when financial institutions need audit reporting from a data integration service, the most cost effective and concise way to do this is in securing a fixed fee from a third-party auditing source, such as a CPA firm. This will save the business time in re-engaging these resources while ensuring that any review is consistent and fully transparent.

Viewing this general overview shows just how complex and tedious the process of finding a SOC2-compliant cloud data integration or management services provider can prove to be in the financial sector. In order to avoid getting stung by a negative audit, it is more important than ever to choose a service which adheres to the same level of SOC2 standards as your business.

Engage a Third Party With SOC2 Expertise

While larger financial organizations have the financial and staff resources to invest in this issue, many small to mid-level organizations are strapped a little more tightly for cash. What does this mean for the more resource-challenged businesses looking to select a data integration service?

Champion has been working with small to mid-sized financial organizations for over thirty years to bring solutions to realization. We have a wide range of experienced data management engineers and financial regulatory prowess to develop an efficient, compliant solution that will meet the current needs of an organization with eyes on scalability to account for future growth. Champion’s IT and regulatory staff works with businesses on a solution, and will analyze and identify the appropriate data integration provider to meet your every SOC2 need. Contact us today so that we can begin to team up and together bring a solution home.


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Erick Bacallao joined Champion Solutions Group in 2015 after a career of Software Development in Cuba at the National Cancer Care Institute of Cuba, followed by moving to the States with allAware.


Champion acquired allAware and its properties and Erick has utilized his extensive background and expertise in IT and Software Development to rise to VP of Product Development in less than 5 years. During this time, Erick has been involved with key projects that led to the launch of numerous products including CSP Boss, Inscape platform and 365 Productivity Insights.


Erick has a Bachelor of Science in Computer Science from the University of Havana. He won Gold Medals for Programming from the Ministry of Education in Cuba, and he is certainly still a Gold Medalist for Champion!


As President and CEO, Chris is responsible for the development of key strategic alliances and solution portfolio. He leads Champion’s go-to market and execution strategies for integrated offerings in the cloud, in security, and in digital infrastructure, always focusing on improving the customer experience and driving transformative business outcomes.


He also aligns key partner initiatives with company strategy and oversees corporate marketing and messaging to gain mindshare with customers and partners. It’s his vision and innovativeness that have catapulted Champion up the ranks to become a $100M+ organization—and one of the most respected solution providers in the industry.


Over the past two decades, Chris has also focused on mergers and acquisitions, as well as innovative product development. He is the original founder and an active member on the Board of Managed Maintenance, Inc., a SAAS provider and consulting firm that utilizes their award-winning One-View Portal to help the IT Channel and its customers manage their IT Maintenance.


Chris is also the original founder and chief strategist behind one of the original storage cloud providers, Storage Access / BluePoint. During the course of a few short years, he had raised $20M and took that company public on the Toronto Stock Exchange. It has since been acquired by Pomeroy.


In 2012, Chris led the acquisition of MessageOps and continued the product development and worldwide launch of its premier SAAS, 365 Command. Built on Microsoft Azure, 365 Command is currently managing over 1 million seats of Microsoft’s Office 365. After achieving this phenomenal milestone, 365 Command and other MessageOps O365 utilities were sold to Kaseya.


Over the past 35 years, Chris as worked tirelessly to not only advance his own career, but those of his employees. In addition to leading a $100M organization, Chris can also be found sitting with sales teams, cold calling and coaching, and validating why Champion has been listed on Best Places to Work by both South Florida Business Journal and Computerworld.

Ultimately, the success garnered by Champion Solutions Group, its associated companies, and their employees is due in large part to the leadership of its President and CEO. Perhaps the most fitting award Chris has earned is South Florida Business Journal’s 2013 Ultimate CEO Award.