Blog » MRS API

March 31, 2025

What to Look for in a Secure Transaction Data Enrichment Partner

• Digital Banking
• Transaction Enrichment

3 minutes

When handling financial data, security and compliance are just as critical as accuracy. Banks and fintechs must ensure that their transaction data enrichment provider follows the highest security standards while maintaining compliance with financial regulations. Choosing the right transaction enrichment partner can mitigate risks, protect sensitive financial data, and maintain customer trust. But what should financial institutions look for in a trusted provider?

Key Security Considerations in Transaction Data Enrichment

Financial institutions process vast amounts of sensitive transaction data daily. Ensuring that a transaction enrichment provider has robust security measures in place is non-negotiable. Key aspects to consider include:

• Data Encryption in Transaction Enrichment: All data—both at rest and in transit—should be encrypted using industry-leading standards such as AES-256 and TLS 1.2+ to prevent unauthorised access.
• Personally Identifiable Information (PII) Protection: The provider should employ anonymisation or tokenisation to safeguard PII and comply with data privacy laws.
• Access Controls for Secure Data Handling: Strict access policies, including multi-factor authentication (MFA) and role-based access control (RBAC), should be implemented to restrict data access to authorised personnel only.

Regulatory Compliance and Certifications for Transaction Data Security

Security isn’t just about best practices—it’s about compliance. Financial institutions should ensure their transaction enrichment partner meets industry regulations and possesses relevant certifications, including:

General Data Protection Regulation (GDPR) Compliance
Ensures that customer financial data is handled responsibly and transparently

ISO 27001 Certification for Financial Data Security
A globally recognised standard for information security management systems (ISMS), demonstrating the provider’s commitment to security best practices.

Data Residency and Sovereignty Compliance
Providers should clarify where enriched transaction data is stored and ensure adherence to local data protection laws, particularly for cross-border transactions.

Risk Mitigation Strategies When Choosing a Security Transaction Enrichment Partner

To protect against potential vulnerabilities, banks and fintechs should also evaluate a provider’s risk management protocols. Key elements include:

• Regular Security Audits for Transaction Data Handling: Independent security assessments, penetration testing, and vulnerability scans should be conducted frequently.
• Incident Response Plan for Transaction Data Breaches: A well-documented and tested response strategy should be in place to manage security breaches effectively.
• Service-Level Agreements (SLAs) on Data Security: Clearly defined SLAs should outline security commitments, uptime guarantees, and data breach notification procedures.
• Transparency in Data Handling for Enriched Transactions: The provider should offer clear documentation on how transaction data is processed, stored, and secured, ensuring full visibility into security protocols.

Key Concerns to Consider in a Transaction Enrichment Provider

Not all transaction enrichment providers meet the necessary security and compliance standards. Warning signs include:

• Lack of transparency in security policies and transaction data handling practices.
• Absence of industry-standard certifications or outdated compliance measures.
• Poor track record of security incidents or unaddressed vulnerabilities in financial data.
• Weak customer authentication and access control mechanisms in transaction data security.

Why Choose Snowdrop for Secure Transaction Data Enrichment

Snowdrop Solutions is a trusted Google partner, helping financial institutions enrich their transaction data securely and competently. We utilise advanced encryption, AI-driven fraud prevention, and robust access controls to keep your data secure at all times. Our compliance with GDPR and ISO 27001 ensures that banks and fintechs can meet regulatory requirements while enhancing customer trust.

With transparent data handling, frequent security audits, and clearly defined SLAs, Snowdrop is committed to mitigating risks and providing a reliable, scalable, and secure enrichment solution. By partnering with Snowdrop, financial institutions can enhance their transaction data confidently without compromising on security or compliance.