Cybersecurity remains a top priority for financial advice businesses and platforms are responding, boosting security protocols. In NextWealth’s latest security report we find that platform providers are rapidly moving to implement new standards over the next 12 months.
Across 20 platform providers, nearly all currently use some form of credential-based (username and password) security protocols. Currently, just under half of these platforms are using some form of factor-based solution. Stricter protocols such as biometric (fingerprint, facial recognition, etc) solutions are still a way off and are offered by only a couple of platform providers.
That said, in the next 12 months we see most providers moving to a factor-based approach using either two-factor authentication (2FA) or a multi-factor authentication (MFA) protocol. All but three platforms will use two-factor or multi-factor authentication within the next 12 months. The verdict is out on how 2FA/MFA will be implemented but current trends are either per session or daily.
In terms of other protocols, security options such as secure file uploads (for client verification and other forms) are offered by many platform providers but not all.
Technology moves quickly and we expect 2FA to become the standard security requirement for platform providers. Biometric authentication is touted as the next stage, but the verdict is out on how or when it will be implemented. We will continue to report as further security trends develop.
The Adviser Tech Stack Security report provides further details of the security options available by named individual platforms. Click here for more information on how to become a subscriber.