Why document shredding is important in the financial sector
One of the top priorities for any business is making sure that all of its documents and data are secure at all times – otherwise, it would be impossible to build trust with customers and partners, and the company would be doomed to fail.
And document shredding is an integral part of the process, especially in the financial sector, where keeping a tight lid on the information and documents that go through the company every day is a matter of survival in the industry.
But why exactly does document shredding matter so much?
Well, there are numerous reasons why developing a sound document shredding system is essential for any finance company, but here are five of the most prominent.
You Need to Comply with Regulations and Laws
As you know, the financial industry is one of the most strictly regulated in the world – for a company to maintain its ability to operate, it must ensure that it meets all of the requirements and adheres to the laws.
Making sure that all of your paper documents are handled with care and aren’t carelessly disposed of is one of those requirements, so as a financial organization, you need to have a process for destroying sensitive materials that are no longer in use.
Today, laws concerning data protection are as stringent as ever, and even a single mishap can send a company into a downward spiral, so you need to be extra careful and ensure that all of your documents are shredded, or face the risk of suffering severe repercussions from the governing agencies.
Finally, even if you disregard the risk of facing severe fines and penalties from the government if a data leak would occur, it’s important to consider the consequences for your brand as well – if a financial company gets the reputation of not taking care of its client data, it can make it almost impossible to compete in the marketplace.
That’s why many companies in the financial sector opt to hire a document destruction service that can bring their expertise and equipment to help with developing an efficient and effective strategy for handling paper documents that are no longer needed.
Protect Sensitive Data from Getting Lost
Being able to shred documents is essential for many reasons, not the least of which is the ability to control where sensitive information about your company and your clients ends up.
Even if you look past the stringent regulations, you still need to prioritize data protection from a pure business standpoint – financial data such as bank statements or even payment details can derail a business if they get lost, so you need to take all the steps that are necessary to prevent it.
Storing old documents takes up a lot of space and can be costly, especially when you consider that you will need to implement security measures to ensure that the records are protected.
And even then, there’s no guarantee that a document won’t get misplaced or mishandled, maintaining the possibility that it could end up in the wrong hands.
That’s why shredding documents is the safest and the most cost-effective solution – it allows to permanently destroy sensitive documents and ensure that they won’t present a risk to the company.
Reduce Storage Space Needs & Increase Safety
Any business should strive to reduce expenses whenever possible, and one of the most easily solvable overhead costs is the reduction of storage space for old paper documents.
As we mentioned before, keeping old documents in storage is unsafe, but it can be quite costly as well.
What’s more, keeping large amounts of paper documents is a fire hazard as well – in case there was a fire, the papers could become a catalyst and increase the damage.
Today, when document digitization is easier than ever, there’s no reason why you shouldn’t start reducing the number of paper documents, and safely destroying the ones that you do have once they’re no longer necessary.
If you’re able to find a reliable document shredding services provider, he can help you develop a strategy for going over your old paper documents and shredding the ones that are no longer necessary.
Avoid Leaking of Confidential Company Secrets
In the financial world, information is the key to success – being one step ahead of the competition is essential for the survival of a company.
That’s why, with corporate espionage tactics becoming more sophisticated every year, companies need to be extra careful about handling their documents and making sure that they are secure from theft.
Even with digital documents, there’s always the risk of them leaking or getting hacked, so the only permanent solution is to destroy all the records that are no longer necessary.
Be More Eco-Friendly
Finally, document shredding for financial companies matters because it allows them to become more eco-friendly and produce less waste that can’t be recycled.
Shredded materials are much easier to transport and recycle, which can serve as one of the key policies in the company’s green initiatives, making it easier to position yourself as an organization that cares about the environment and wants to contribute.
If you already work with a document scanning company as part of your document management, you can work with them to set up a process for document shredding that would then get the shredded documents into a recycling facility where it could be repurposed.
Even simple changes in policy can help financial companies take positive steps towards becoming more eco-friendly and serve as a stepping stone for bigger initiatives in the future.