Virtual data rooms in the financial sector: The DORA-compliant solution to cybersecurity challenges in finance
In the digital world, financial institutions are facing a multitude of cyber threats, which not only pose risks for their own systems, but also for the entire financial system. They are extremely popular targets for cyberattacks, especially of the ransomware kind. Not only can these attacks potentially cause financial losses, but they can also lead to significant reputational damage.
To counter this and give the financial market a general boost to fend off cyber threats, the European Union passed the Digital Operational Resilience Act (DORA). This regulation affects all financial institutions, including credit institutes, payment service providers, and investment firms. DORA requires these organizations to implement an IT infrastructure which facilitates security as well as productivity — as of January 17, 2025. As the deadline has just passed, businesses should immediately address the issue of how to ensure adequate IT security.
Boosting cyber resilience with virtual data rooms
In light of this challenge, the use of virtual data rooms is a promising solution to boost cyber resilience and productivity at the same time. By leveraging encryption, access rights management, and secure data sharing methods, common entry points for hackers can be effectively sealed. These measures are crucial for ensuring the security of sensitive data and minimizing the risk of cyberattacks.
Benefits of virtual data rooms for financial institutions
Secure data exchange
Financial institutions predominantly handle sensitive data including personal information, transaction data, credit reports, credit card details, financial statements, and contracts. Virtual data rooms provide an encrypted environment that significantly hinders cybercriminals and unauthorized individuals from accessing this critical information.
End-to-end encryption (E2EE) based on the zero-knowledge principle ensures that only authorized individuals can access the data, while the provider has no access to the encrypted information.
This approach also enables secure data exchange with business partners, auditors, and clients. Encrypted transmission pathways safeguard the data throughout the entire communication process.
In addition, thanks to Tresorit’s collaborative link feature, secure digital data rooms are not just reserved for those with a Tresorit account — users can simply send a link for a previously set-up virtual data room to their external partners.
Partners can then easily access and collaborate without needing their own Tresorit account. This simplifies the joint handling of sensitive documents such as NDAs or contracts, while ensuring that all versions are stored in an organized, centralized location — accessible to all involved parties.
Usability
Today’s customers expect intuitive financial services. While user experience is a top priority, security is non-negotiable. Employees also tend to favor tools that are easy to use.
User-friendliness is therefore a critical factor in facilitating the implementation of virtual data rooms within an organization and preventing the rise of shadow IT. Integrated features, such as electronic signatures, further enhance security and efficiency.
Data integrity
Features like version control further enhance security within virtual data rooms. With all data stored in a centralized location, it becomes easier to maintain oversight and detect potential manipulations.
Additional measures for enhanced security and efficiency
Beyond utilizing virtual data rooms, financial institutions should also implement fundamental IT security practices, such as secure passwords and multi-factor authentication (MFA).
Regular training sessions and security audits are equally essential to raise employee awareness of cyber threats and ensure they stay up-to-date with the latest security technologies.
Cybersecurity two-for-one: DORA and NIS2
While financial institutions focus on complying with the DORA regulation, companies in other critical sectors are required to meet the provisions of NIS-2 as of October 2024. Similar to DORA, the NIS-2 Directive aims to elevate cybersecurity standards across the EU, with a particular focus on key and critical entities. It broadens the scope of the original NIS Directive and introduces stricter cybersecurity requirements.
By adhering to both DORA and NIS-2, financial institutions and other critical organizations can not only enhance their own security but also contribute to the overall cyber resilience of the EU economy.
Discover more in our blog post about how organizations can effectively implement NIS-2 requirements — and leverage the benefits of virtual data rooms in the process.
Modern challenges, modern solutions
Virtual data rooms provide an efficient solution to the cybersecurity challenges faced by the financial sector. They not only enable the secure exchange and management of sensitive data but also support compliance with DORA requirements.
By utilizing tools that strike the right balance between security and user-friendliness, financial institutions can enhance their cyber resilience while maintaining productivity.
