
miniOrange Identity & Access Management (IDAM) helps every financial & banking services firm whether it is large or small, needs to know and adhere to the financial & banking services industry’s regulatory compliance standards. These standards govern everything from how your company prices products, collects premiums or handles customer disputes. They are also the foundation for anti-fraud measures that protect the identity theft of credit card holders and identity fraud worldwide. Financial regulators are always increasing the cost of committing wrongdoings in these two areas. Becoming compliant with these regulations will help you survive any potential changes.

Financial & Banking enterprises need to have data protection & Access control with [Identity & Access management](https://blog.miniorange.com/identity-and-access-management-iam-market-after-economic-turndown/) for internal & external applications. This is helping finance & banking enterprises to build trust & create safe experiences for the workplace & customers.

miniOrange IDAM solution for Banking or Non-Banking & Finance Sector, whether it is on-premise or cloud ([identity as-a-service – IdaaS](https://blog.miniorange.com/what-is-identity-as-a-service-idaas/), for example), ensures that the authorized users can access only the data they are permitted to access.

### Is IDAM Necessary for the Banking & Finance Sector? {#is-idam-necessary-for-the-banking-and-finance-sector}

Identity and Access Management (IDAM) is a critical aspect of cybersecurity in the banking industry. It refers to the processes and technologies used to manage and secure access to a company’s systems and data.

In the banking industry, IDAM is particularly important due to the sensitive nature of the data being handled. This includes customer financial information, as well as internal banking operations data. Ensuring that only authorized individuals have access to this data is essential for maintaining the security and integrity of the bank’s operations.

Banking & Finance sectors have  compliance programs designed to make sure that banks adhere to a certain set of guidelines and regulations that affect the operations of financial institutions. Compliance in banking has become more important than ever before due to the number of regulations adopted by both government and financial regulators. Compliance regulations such as:

**PCI-DSS** mandates the implementation of IT security measures to protect the integrity, confidentiality, and availability of financial data.

**SOX** compliance refers to compliance with the Sarbanes-Oxley Act, a US federal law passed in 2002. SOX requires companies to maintain internal controls and procedures for financial reporting, and to have an independent auditor attest to the effectiveness of those controls. It is mandatory for any company that is publicly traded in the United States to comply with SOX

**GLBA** compliance refers to compliance with the Gramm-Leach-Bliley Act, a US federal law passed in 1999. GLBA requires financial institutions to have a written information security plan (WISP) in place, which includes administrative, technical, and physical safeguards to protect nonpublic personal information from unauthorized access or use. The GLBA applies to banks, credit unions, securities firms, and other financial institutions that offer consumers financial products or services.

**FISMA** compliance refers to compliance with the Federal Information Security Modernization Act, a US federal law passed in 2002. FISMA requires federal agencies to implement information security policies and procedures, including risk management, incident response, and continuous monitoring of their information systems.

**SAMA** compliance refers to compliance with the regulations set by the Saudi Arabian Monetary Authority (SAMA), which is the central bank of the Kingdom of Saudi Arabia. SAMA sets rules and regulations for financial institutions operating in the country to ensure stability and safety of the financial system.

**RBI Guidelines** -  In India, banks are required to comply with various IT-related regulations and guidelines set forth by the Reserve Bank of India (RBI) to ensure the security and integrity of banking systems and data.

miniOrange IDAM solution supports more banking & finance compliance like above mentioned according to the different countries & regions.

### IDAM System {#idam-sysytem}

There are several key components of an effective **IDAM system** in the banking industry:

![IDAM Systems](/blog/assets/2023/idam-system.webp)

- **User registration**: Customers register for online banking by providing personal and identification information, such as name, address, date of birth, and government-issued ID.
- **Authentication**: The bank verifies the user’s identity by using one or more authentication methods, such as a password, security questions, or biometrics.
- **Authorization**: Once the user is authenticated, the bank grants access to the appropriate resources, such as account information or online transactions, based on the user’s role and permissions.
- **Access management**: The bank monitors and controls the user’s access to resources by implementing policies and procedures, such as password expiration, multi-factor authentication, and access logs.
- **Audit and compliance**: The bank maintains records of all user activity for compliance and auditing purposes, such as to detect and prevent fraud.
- **De-provisioning**: When a user’s access is no longer needed, the bank revokes the user’s access to resources and performs any necessary clean-up tasks, such as deleting the user’s account or archiving the user’s data.

Overall, IDAM is a crucial aspect of cybersecurity in the banking industry. By implementing strong identity verification, access control, and auditing and reporting processes, banks can ensure that their systems and data are protected against potential threats.

IDAM combines SSO with [multi-factor authentication (MFA)](https://www.miniorange.com/products/multi-factor-authentication-mfa) to secure user access to cloud and on-premises applications and protects confidential financial data by applying different authentication factors for different users based on risk factors such as IP address, time of access, device, and geo-location with risk-based automated access control.

Secure financial data with IDAM for Banking & Finance. Get Single Sign-On & Multi-Factor Authentication  for cloud/on-premises apps. Ensure regulatory compliance & data protection.

IDAM for Banking and Finance Sector to ensure regulatory compliance


Nowadays ensuring that Information Technology (IT) systems operate smoothly is critical in the complex web of contemporary securities trading. The threat of IT system breakdowns is causing anxiety for investors and securities firms. These errors can lead to a series of problems, including trading disruptions, data breaches, and significant financial losses.

### Understanding the Importance of Information Security in Securities Companies {#understanding-the-importance-of-information-security-in-securities-companies}

Information security plays a crucial role in the operations of securities companies. Cyber threats are on the rise. Protecting sensitive data and ensuring the safety of IT systems is important. This is necessary to maintain trust and compliance in the industry. 
The securities industry deals with vast amounts of confidential information, including clients' personal and financial data. A cybersecurity breach can lead to financial losses and harm a company's reputation. 
It’s important to have strong data protection measures to reduce risks from cyber attacks. Securities firms must invest in advanced security technologies, regularly assess their security, and continuously train employees to be aware of potential threats. 
By prioritizing information security, securities companies can demonstrate their commitment to protecting client assets and maintaining a secure environment for conducting financial transactions. Data breaches are happening more often. Businesses in the securities industry must protect sensitive information to stay safe and secure.

### Regulatory Requirements and Compliance {#regulatory-requirements-and-compliance}

1. Exploring Clause 10, Article 89 of the Securities Law 2019:
Article 89 of the Securities Law 2019 is important for regulating securities companies. It focuses on the importance of protecting IT systems and backup databases. Regulatory authorities recognize the importance of strong cybersecurity measures in protecting market integrity and investor interests.
2. Delving into Specific Provisions by the State Securities Commission:
The State Securities Commission creates rules for IT system security and continuity. These rules improve the requirements in Article 89 of the Securities Law 2019. The rules involve regular checks, risk evaluations, and plans to prevent problems and interruptions. The Commission wants securities companies to follow strict cybersecurity rules to ensure a safe financial system.

### Mitigating Risks and Ensuring Compliance {#mitigating-risks-and-ensuring-compliance}

1. Enhancing IT Infrastructure Safety and Resilience:
Securities companies must follow best practices and guidelines to strengthen their IT infrastructure. This includes implementing robust cybersecurity measures such as firewalls, encryption, and intrusion detection systems. You should apply regular software updates and patches to address known vulnerabilities. Additionally, employee training programs on cybersecurity awareness can help mitigate human errors and prevent security breaches.
2. Mitigating Vulnerabilities through Audits and Risk Assessments:
Conducting regular audits and risk assessments is paramount for identifying and mitigating potential vulnerabilities in IT systems. These assessments should encompass thorough evaluations of network security, data protection measures, and access controls.
Testing backup systems with simulated scenarios ensures they can restore operations after a disruption or data loss. This enables organizations to prepare for any potential issues that may arise. It also allows them to identify and address any weaknesses in their backup systems. Ultimately, this proactive approach can minimize downtime and protect critical data.
3. Fostering Collaboration with Regulatory Authorities:
Collaboration between securities companies and regulatory authorities is essential in addressing IT security challenges. Regulatory authorities can provide guidance, updates on emerging threats, and regulatory requirements to enhance cybersecurity practices. Moreover, participating in industry-wide initiatives and information-sharing forums enables securities companies to stay abreast of evolving cybersecurity threats and mitigation strategies.

### Best Practices for Ensuring Safe Operations of IT Systems and Backup Databases in Securities Companies {#best-practices-for-ensuring-safe-operations-of-it-systems-and-backup-databases-in-securities-companies}

Ensuring the safety and security of IT systems and backup databases is crucial for securities companies to protect sensitive data and maintain operational efficiency. Companies can reduce risks and protect their operations by using strong security measures and effective backup procedures.


Implementing robust security protocols is vital for protecting sensitive information from unauthorized access or cyber threats. Securities companies should enforce strong password policies, use encryption technologies to secure data transmissions, and regularly audit their systems for potential vulnerabilities. Employee training on cybersecurity best practices can also help strengthen the overall security posture of the organization.


Regularly maintaining IT systems is important to keep them updated with the latest security patches and software updates. This helps address vulnerabilities that cyber threats could exploit. Having a clear plan for backing up your database is important. This way, you can quickly recover if you lose data or experience system failures.


Implementing Multi-Factor Authentication (MFA) adds an extra layer of security by requiring users to provide multiple forms of verification before accessing sensitive information. Single Sign-On (SSO) allows users to log in once to access multiple applications, reducing password-related risks. This means that users only need to remember one set of login credentials.
By using SSO, users can save time and effort by not having to log in separately to each application. Additionally, SSO enhances security by reducing the number of passwords that users need to manage.

Identity & Access Management (IAM) tools help companies manage user permissions effectively, ensuring that only authorized personnel have access to specific resources. Securities companies can prevent unauthorized access and potential data breaches by enforcing strict access controls and monitoring user activities.

Important for securities firms to follow best practices to operate securely in the digital age. To stay secure, make sure to update IT systems, use strong security measures like MFA and SSO, and use IAM tools. Prioritizing cybersecurity measures not only protects valuable assets but also instills trust among clients and stakeholders in the company's commitment to data protection.

### miniOrange MFA: Enhancing Identity Security with Ease {#miniorange-mfa-enhancing-identity-security-with-ease}


miniOrange MFA offers a comprehensive solution for enhancing identity security with ease. miniOrange is a reliable ally in the fight against cyber threats. They focus on protecting against identity theft by offering easy implementation, a seamless user experience, and ensuring user identity security.

MiniOrange MFA helps organizations and users stay safe in the digital world. It provides trusted security to protect identities and data. This security provider ensures safe navigation online



Understand the regulatory requirements of Article 89 and its critical role in safeguarding IT systems and backup databases in securities companies.

IDAM for Banking and Finance Sector to ensure regulatory compliance

Regulatory Compliance and IT Security in Companies: Understanding Article 89 of the Securities Law 2019