With financial institutions under intense scrutiny from regulators, auditors, and customers alike, the need for secure, compliant communications has never been greater. Whether it’s private discussions between executives, client information shared across borders, or coordination with legal or risk teams, ensuring that these exchanges remain confidential and auditable is now essential.  When deployed correctly, a secure communications system offers a safe haven for key staff during a major outage or a time of crisis.

Why Financial Communications Are Under the Microscope

The financial services industry has long been a prime target for cybercriminals and threat actors due to the high value of the data it handles. At the same time, the industry faces a complex matrix of regulatory frameworks from DORA, GDPR and MiFID II to the FCA’s SYSC rules, SEC guidelines, and emerging digital communication oversight laws.

This scrutiny is especially sharp when it comes to mobile and digital communications. Regulators have issued record breaking fines to firms whose employees used unauthorised messaging apps or failed to preserve key communication records. Beyond the financial cost, the reputational damage can be long lasting.

In a sector where trust and compliance are paramount, financial institutions can no longer rely on consumer messaging apps or outdated internal tools to manage sensitive conversations.

The Risks of Using Unsecure or Unapproved Messaging Platforms

Despite clear regulatory guidance, many professionals in banking, asset management, and insurance still resort to platforms like WhatsApp, iMessage, or personal email accounts for convenience. But these tools were never designed for enterprise compliance, nor do they provide the visibility and control required by financial regulators.

Key risks include:

Lack of audit trails
Most consumer apps don’t allow for retention or supervision, making it impossible to retrieve conversations if required by auditors or during investigations.

No administrative oversight
IT teams have no way to control who is using the app, who they’re speaking to, or what is being shared.

Data exposure risks
Hosting data on third party servers often outside the institution’s jurisdiction raises concerns over data sovereignty and potential breaches.

Violation of record keeping rules
Regulations such as DORA and the SEC’s electronic communications mandates require institutions to capture, store, and be able to produce relevant communications on demand.

In short, the continued use of insecure messaging tools not only places firms at risk of enforcement action but also undermines the integrity of internal operations.

A Secure and Compliant Solution: Salt Communications

Leading financial institutions are now turning to secure communication platforms built specifically for regulated industries. 

Salt provides a secure, encrypted platform that allows financial professionals to communicate freely without compromising compliance. Unlike consumer tools, Salt Communications offers complete administrative control, message auditing, user management, and the ability to deploy the system on premise or in a private cloud environment.

Whether it’s a compliance officer needing to ensure conversations are archived for regulatory review, or a board member discussing confidential M&A activity, Salt delivers both privacy and oversight in one elegant, enterprise grade solution.

Salt Communications enables firms to uphold the highest levels of confidentiality while remaining compliant with industry regulations, a balance that has been notoriously difficult to achieve until now.

About Salt Communications

Salt Communications is a multi award winning cyber security company providing a fully enterprise managed software solution that delivers absolute privacy in mobile communications. It’s simple to deploy and uses layered encryption techniques to meet the highest security and regulatory standards.

Salt Communications gives financial institutions peace of mind by offering complete control over sensitive communications. Headquartered in Belfast, Northern Ireland, the company is trusted by global banks, wealth managers, and insurance providers to protect their most valuable asset, information.

For more information or to discuss how Salt Communications can support your organisation, contact info@saltcommunications.com or visit Salt Communications.

References:

https://saltcommunications.com/financial-services/
https://www.fca.org.uk/news/news-stories/market-watch-69
https://www.sec.gov/news/press-release/2023-188
https://www.eba.europa.eu/regulation-and-policy/internal-governance/guidelines-internal-governance
https://www.reuters.com/legal/litigation/big-banks-fined-19-bln-recordkeeping-violations-2022-09-27/