What Does SOC 2 Stand For?
SOC 2 is a set of standards designed to regulate 5 components of information security for 3rd party SaaS and technology providers that deal with their clients’ customer’s personal data. The 5 components are:
Also pronounced “sock two,” SOC 2 audits and reports are required to make sure that financial software service providers are handling personal and business data securely. For financial software providers and SaaS companies like Liveoak, SOC 2 compliance ensures that all data collected during a customer interaction is safe.
The parameters for SOC 2 compliance was formed by the American Institute of CPAs (AICPA) Trust Services Principles and Criteria, which is a governing body tasked with developing technical standards for data collecting. Under those guidelines, SOC 2 Report makes it easier for financial institutions who outsource key elements of their business to 3rd party SaaS providers to ensure their customer’s data is being handled correctly.
Remaining SOC 2 compliant is an important part of working with our clients. Since our software is specifically designed to capture personal data during customer interactions, security measures like bank-grade encryption, two-factor authentication, and more are a key component of how our software works.
Our digital platform enables financial institutions to verify customers’ identities and comply with regulations including SOC 2 and KYC. During Liveoak sessions, we set up authentication questions and responses. ID photos can be taken on the spot with a mobile device and uploaded through a selfie feature, and matched with an uploaded image of the customer’s official ID card. The images are then inserted into the individual’s file.
Secure, online ID verification, communication, and transactions are the best way to engage the digital-savvy customer. For financial institutions, working with SOC 2 compliant SaaS enables them to adopt cutting-edge technologies without having to build the technological infrastructure themselves. SOC 2 reporting and compliance helps the financial industry remain agile and deliver leading-edge experience to new and existing customers.