Enterprises struggle to keep up with security and compliance when it comes to collaboration tools

Theta Lake, an AI solutions provider, surveyed 100 executives in the financial services sector and found that 83% of respondents are turning off key productivity and usability features of collaboration platforms such as Zoom, Microsoft Teams and Webex because their organizations are technically unable to comply with regulatory compliance and security requirements.

Analysis shows that the exponential adoption of collaboration tools since the beginning of 2020, coupled with reliance on legacy archiving and custody technologies built for email, has posed challenges for financial services firms.

While 91% of financial services professionals report using two to six collaboration tools, 63% are concerned about the ability to share data and communications in a way that circumvents email-based monitoring and archiving. This is directly related to the 83% of respondents who report disabling features such as whiteboards, screen sharing, and meeting chat, rather than strategically implementing dedicated technology to ensure compliance and enable collaboration and productivity.

Susannah Hammond, Senior Regulatory Intelligence Specialist at Thomson Reuters, commented: “The COVID-19 pandemic has been said to have ‘turbocharged’ digitalisation, which has brought both benefits and challenges. New, hybrid, ways of working bring new risks, and regulators are geo-neutral, so it does not matter to them whether employees are working remotely from the office or at home. Supervision has intensified during the pandemic, and regulators expect risk and control infrastructure to keep pace with changing and flexible working practices.”

Collaboration tools require proper compliance oversight

• The top three collaboration features considered a threat or challenge to privacy and security include: files downloaded or transferred in chat, links shared in chat or on screen, and screen sharing. 63% of respondents said their top security concern was bypassing email and sharing confidential information through screen sharing or webcam.

• Since the release of Theta Lake’s 2020 benchmark report, video and chat usage have surged, increasing by more than 70% and 50%, respectively.

The rapid adoption and increasing use of collaboration tools presents risks to the enterprise and a corresponding need for appropriate compliance oversight. In 2020, IT teams mobilized to implement collaboration platforms to provide flexibility, efficiency, and business continuity, but compliance and oversight considerations often took a back seat.

Recent guidance from FINRA and the U.S. Securities and Exchange Commission (SEC), the UK Financial Conduct Authority (FCA), and the European Securities and Markets Authority (ESMA) indicates that demonstrable electronic communications capture, retention, and supervisory controls are essential for the compliant use of collaboration and chat tools. To meet these regulatory requirements, address compliance issues, and maximize the full return on investment of key Webex features such as Cisco, Microsoft Teams, RingCentral Office, Zoom, etc., enterprises must use purpose-built security and compliance technology solutions.

“Enterprise reliance on collaboration tools is at an all-time high and is clearly set to continue,” said Stacey English, director of market intelligence at Theta Lake. “Adhering to the compliance and security requirements of these new types of communications, especially for financial services and other regulated industries, has proven to be a key issue and challenge. This report sheds light on this challenge and key areas of risk management, and provides a roadmap for enterprises to continue to expand their use of collaboration tools while meeting compliance needs.”