Has the Gramm-Leach-Bliley amendment effectively outlawed legacy collections software?

The Gramm-Leach-Bliley Act sets out clear requirements for the privacy, security, and management of customer data.

To keep up with these requirements, you need a modern collections platform. This is because legacy software struggles to keep up with the modern world of data security. 

In this article, we unpack the reasons why legacy software can’t easily provide the appropriate data management systems to be compliant with the GLBA. 

The modern requirements for data compliance

The Gramm-Leach-Bliley Act (GLBA) focuses on the protection of customer data in the financial industry. It serves to prevent the intentional and unintentional misuse of said data, requiring financial firms to be completely transparent in how they manage each aspect of it.

The act has three key rules; the privacy rule, the safeguarding rule, and the pretexting rule. Each focuses on a different element of customer data management.

The privacy rule prevents firms from sharing customer information to unaffiliated third parties. The safeguarding rule requires firms to have sufficient security protocols in place to protect customer data from potential cybersecurity breaches. And the pretexting rule protects customer data from unintentional misuse from within the firm itself.

Legacy software makes data security compliance impossible

With the modernization of the collections experience, there are a multitude of ways for your customers to engage with you at each step of their journey. Whether it be through self-service interfaces, personalized portals or specific channels, you need to make sure you are compliant with the GLBA across each.

This is where the limitations of legacy systems become an obstacle in the way of compliance. These systems make integrating omnichannel capabilities difficult, let alone the security measures required to protect customer data. And even if you manage to install these security measures, regularly patching and updating them becomes an arduous ordeal that takes valuable time away from your customers.

Long story short, legacy systems lack the modern infrastructure and architecture to stay up-to-date with the constantly evolving world of data security. By sticking with these systems, you are putting your customers’ data and brand loyalty at risk.

You need a cloud-native platform to be GLBA compliant

Cloud-native platforms make it easier to be compliant with the data security requirements of the GLBA. These platforms showcase modern architecture that makes the deployment of security systems simple.

• End-to-end encryption - Cloud-native platforms enable the encryption of customer data from end-to-end of the customer journey. This provides a resilient level of security in the case of a security breach and is compliant with the GLBA as a result.
• Automated data monitoring - Cloud-native platforms support automated data monitoring capabilities. This makes sure customer data is stored safely, is up-to-date, and can interrogate file transfers to make sure they are authorized and compliant with the GLBA.
• Secure customer portal - Cloud-native platforms integrate with secure customer portals where they can access and manage their data. These portals have safeguards to protect their data and personalize their experience without jeopardizing sensitive information. 

Secure your customer data and brand loyalty with C&R Software

The GLBA’s strict guidelines have highlighted the need to transition from legacy systems to cloud-native solutions. This is because the former simply lacks the necessary security infrastructure to adapt to the turbulent world of cybersecurity.

At C&R Software, our industry leading Debt Manager is a cloud-native solution that integrates data security at each step of the collections journey. Modules such as Agency Network provide encryption, data validation and cloud-native services to make data security and compliance simple.

To find out more about Debt Manager and its data security capabilities, contact a member of our team today.