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Secure Document Sharing Strategies for the Investments Industry

Business needs within the financial services industry have accelerated research and development of many technology innovations. The cloud is one realm which has advanced, because of the need for:

  • Frequent collaboration on large, complex document files
  • The need to maintain trusted versions of these files from creation and negotiation to sign-off, and beyond.
  • Rapid growth of data, storage requirements, and financial transactions.
  • Platforms for investors to be able to execute contracts from where ever they are, with the device which is most convenient.

Why are virtual data rooms so popular among businesses and investors? These are four of the primary benefits we’ve found resonate most with our prospects and customers:

The SATO Principle of VDRs

  • Security – Virtual Data Rooms create a secure environment for each business individually, and security settings can be individually configured. You can use additional security features like file sharing restrictions, document expiry dates and permission-based visibility among your employees.
  • Two-factor, or multi-factor authentication is a regulatory requirement for many countries around the world, which makes having this capability on your VDR a must have, not a “nice to have.”
  • Access – Your business can share data with third parties without the need to repeat the process multiple times. Just upload, or email in the document you want to manage and set up an invitiation to the desired recipients. Privileged team members and your investors can access the deal room from any device, on demand.
  • Time – Having all the necessary data stored in a single online repository makes your life easier in terms of meeting your daily objectives. VDR’s cut down on the need for travel, empowers investors and/or their attorneys to propose contract changes on their agenda, and allows for fast, easy document submission without needing to log in.
  • Organization – Document collaboration on corporate internets is a normal behaviour for executives and employees. Establishing secure, search-optimized legal extranet access for your clients provides a level of sophistication and convenience which investors appreciate.

Extending your branding to your VDR is preferable to the “vanilla” experience of a standard cloud file share. Creating contextual file structure and document profile increases discoverability and adds convenience.

Virtual Deal Rooms Move Business Forward

Hopefully, It’s now clear why Virtual Data Rooms are popular among businesses across industry sectors such as:

  • Corporate legal and law firms
  • Financial services companies like banks
  • Pharmaceuticals
  • Advisory firms for Mergers and Acquisitions
  • Accounting firms

Here are some points which should emphasize that VDR’s are the best way to share data with your investors.

Integrating your VDR with other solutions you are already using is a good place to start improving your data sharing capacities. Business applications with open API’s are great opportunities to extend the ROI you achieve on your VDR investment:

  • Accounting systems
  • Customer Relationship Management apps
  • Internal document and/or matter management systems

In reality, your clients won’t have the time to proactively check for new updates on your VDR. Create an email alert that will notify specific groups of users regarding any changes happening with the VDR, like the board of directors of the investment company you’re working with.

Deploying a VDR  will empower your team to responded to a customer requests on time, which often accelerates the negotiation process. Imagine a scenario where all the documents your company creates in a single day are automatically synced on your VDR, and become instantly available to your investors.

Virtual Data Rooms offer great amount opportunities for businesses through the creation to resolution of the investment or M&A negotiation process. All files and communications remain secure between you and the third parties you collaborate with.