When an individual or an enterprise uses the services using products from any financial institution, are protected by the Gramm-Leach-Bliley Act or GLBA. This Act applies to all financial institutions and has been applied to protect the confidential information of customers. The FTC or the Federal Trade Commission presides over all institutions that provide loans, advice related to finance and investments or insurance. All loan brokers, debt collectors, entities that prepare tax returns, banks, suppliers of real estate settlement services, non-bank mortgage lenders and real estate experts are under the purview of this Act.
According to GLBA compliance financial institutions must implement security standards to protect customer information from unforeseen threats. The law provides mainly cover to collect, disclose and protect personal information. Therefore it is extremely necessary for all financial institutions to implement a management procedure of compliance that deals with security policies.
Importance of GLBA
It is not a simple job to manage a financial institution. Simply providing attractive offers is not enough to acquire and retain customers. It is also extremely important to safeguard customer information and ensure their safety. Financial matters are highly sensitive and critical. Sector organisations therefore have stringent security measures to be taken. Software for effective management of compliance can be useful for ensuring compliance with GLBA is to a large extent. Here are the features common to most of the GLBA compliance solutions in the market:
GLBA Compliance Management Software features
1. Cloud based program using local deployment procedures to reduce the large investments. With cloud services easily available based the returns are very high.
2. reduce the time usually wasted on individual compliance processes and thereby reduce operating costs.
3. A centralized repository manages data efficiently by storing documents, testimonies and processes in one place. The accessibility of this information is possible from anywhere, anytime.
4. With the help of centralized dashboard, institutions may have a clear visibility compliance status applied to several units, located globally.
5. they provide a secure web-based interface for easy accessibility, workflow management, document management and control of inventory.
6. Conduct intensive analysis of information and integrate all compliance-related information from various sources and match them against the signatures of conformity.
7. Handle all tasks that are relevant to compliance and ensure compliance regulation optimization by sending reminders.
8. Monitor and track movements to detect any loopholes and reclamation processes set immediately into action.
9. Provide a comprehensive audit trail.
Compliance with GLBA has been beneficial for customers and financial institutions. While the mandatory standards of GLBA guarantee a high degree of safety, making it safer for customers, financial institutions comply with GLBA financial institutions can win the confidence of the people and attract more prospects.