Unless you’re FCA-approved, you can’t practice as a financial planner, so getting that FCA stamp of approval is vital. However, alongside the paperwork and regulations you need to be thinking about, there’s another important aspect to consider: technology.
In this blog, we’ll be taking a closer look at why picking the right tech is key, and how you can go about it.
Why do you need to use different technology?
First things first, why does the choice of technology matter when seeking FCA authorisation? Well, it’s not just about having the latest gadgets or trendiest software. There are some concrete reasons behind it, and one of the most significant factors is *drum roll please* cybersecurity! Yep – we’re sure you guessed that before we said it.
Surprising no one, the financial sector is a prime target for cyber-attacks due to the sensitive data it typically handles. From customer information to financial transactions, there’s a lot at stake. Therefore, having sold cybersecurity measures in place is absolutely non-negotiable, and generally the more up to date your software, the better your cybersecurity will be.
When selecting technology with FCA authorisation in mind, you want to be putting those cybersecurity features under the microscope. Encryption, multi-factor authentication, and regular security updates are your best friends here.
Make sure you choose scalable tech
Whilst this point isn’t just specific to FCA authorisation, it’s a good idea to consider scalability when picking out new tech. As your business grows and you onboard more employees, will your chosen technology stack up? When you’re choosing stuff like CRM software or communication tools, make sure they’re up for the challenge of a growing team. That way, you can avoid any headaches later on.
Wouldn’t it just be easier to outsource my technology requirements?
We’re so glad you asked this question, because yes, it is easier to outsource it! Here’s why:
Expertise matters: When you’re knee-deep in FCA regulations, you want someone who knows their stuff. Outsourcing your tech means tapping into a pool of experts who eat, sleep, and breathe technology and compliance.
Cost-effectiveness: Sure, it might seem cheaper to handle everything in-house. But when you factor in the cost of hiring and training IT staff, not to mention keeping up with tech updates, outsourcing starts to look like a bargain. Plus, if you outsource, you’ll get the right technology the first time around, rather than playing trial and error which can quickly add up and get pretty unpleasant for your wallet.
Focus on your core business: Let’s face it – chances are you didn’t get into finance to become a tech guru. By outsourcing your IT needs, you free up valuable time and brain space to focus on what you do best – serving your clients.
Before you outsource: Just remember, when it comes to FCA authorisation, you can never be too careful. Make sure your chosen tech partner takes security seriously and has the latest measures in place to protect your data.
I don’t want to outsource; can you tell me what software I should use?
Have you decided to go it alone and not outsource? Then let’s talk specifics. What software should you avoid like the plague, and what do you absolutely need in your toolkit?
Avoid:
Outdated legacy systems: If your software looks like it belongs in a museum, it’s time to upgrade. Legacy systems are a security nightmare waiting to happen, in fact we’ve written a whole blog about them recently. You can give that a read here!
One-size-fits-all solutions: Your business is unique, so why settle for generic software? Look for solutions that can be tailored to your specific needs.
Must-have:
Compliance management software: This should be a no-brainer. Invest in software that helps you track and manage your regulatory obligations with ease.
Secure communication tools: In the age of Zoom bombings and email hacks, you can’t afford to skimp on security. Look for encrypted communication tools that keep your sensitive data safe from prying eyes.
Invest in training: Lastly, if you’re not outsourcing, make sure that you actually know how to use your technology and that it’s all set up correctly. Whilst having the latest and greatest tech will help to protect your business, it’s not going to be as much help if you don’t know how to use it properly.
Need some help with your IT? Contact us today to find out about our range of IT services!