Email is still the default for sharing sensitive data, but should it be?
Have you ever sent an email and immediately wished you could take it back? Maybe it had the wrong attachment. Maybe it went to the wrong “Alex”.
It’s an all too common and costly mistake. Research reveals a staggering 94% of organizations have experienced email security incidents in the past year, including data loss or exfiltration, and 95% of data breaches involve some form of human error, like sending the wrong file or accidentally forwarding sensitive documents.
In banking, those small, easy to make mistakes can carry massive consequences, especially when what’s attached is a customer’s full financial picture. And yet, email remains one of the most common ways businesses share sensitive data with their bank.
In fact, a recent Codat study found that 46% of businesses send sensitive financial data to their banks via email. Even more surprising: 36% still walk paper files into branches and 34% use physical mail.
The hidden dangers of ‘business as usual’
When banks ask, “Is connecting to customer data via an API like Codat secure?” they’re often missing important context: how it compares to what they’re doing today.
If your bank operates a commercial card program of any kind, you’re already collecting Personally Identifiable Information (PII) on your customers and their suppliers. And more often than not, that data is exchanged through email attachments.
So, yes it’s fair to question whether new technology introduces risk. But you should also consider whether your current methods are exposing you to more than you realize.
Here’s what those old methods mean in practice:
- High error risk from manual processes and human handling
- No audit trail to track who accessed what, when, or why
- No control once the data leaves the customer’s hands
- Potentially no encryption at rest for email attachments
Security and privacy aside, the process can also meaningfully damage credibility. Asking customers to dig through spreadsheets, email files back and forth, or print out sensitive documents adds friction at the moments when you should be building trust: onboarding new customers, helping them grow, and showing them you’re ahead of their needs, not behind them.
So… is Codat more secure than email? Absolutely. Click here to see why.
Your customers are ready for change
There’s a prevailing myth in banking that customers aren’t ready for a new way data sharing. But our research tells a very different story.
99% of businesses are familiar with digital data sharing. Nearly four in five mid-market firms (those with $100 million to $500 million in revenue) say they’re very familiar. 42% already use direct data connections with at least one of their banks.
And they’re willing to share more. Our research found that over half (53%) of businesses are willing to provide their bank with access to their financial data, either on an ongoing basis or for the full duration of their facility. A further 37% would be happy to do so on a one-off or occasional basis.
The organizational side of innovation
If your customers are already comfortable with digital data sharing (and they are), what’s actually holding banks back? Often, it’s not the technology but the transformation.
Yes, API-based connections like Codat’s are significantly more secure than email, but recognizing that isn’t the same as operationalizing it. That’s where change management matters.
For this kind of project, it means:
- Building consensus among risk, compliance, legal, product, and sales teams
- Equipping frontline staff with the training and confidence to use new tools and communicate their value to customers
- Establishing trust, both internally and externally, that the new process is not only more secure, but easier and better for everyone involved
That’s why Codat doesn’t just hand you the product. We work with you through every step. From onboarding to technical setup, we help your teams get aligned, tailor workflows, and train staff based on your bank’s goals and your customers’ needs.
And we’ve seen how impactful this approach can be. Banks that invest in thoughtful, well-supported change management ultimately unlock a more secure, scalable, and client-friendly means of data sharing. And the payoff is measurable:
- Reduced operational and compliance risk
- Faster onboarding and product decision-making
- Higher adoption rates for commercial card programs
- Improved client satisfaction, driven by frictionless interactions
How Codat bridges the security gap
Codat was built from the ground up for secure, read-only API access to business financial systems. We work with top-tier banks to transform their data-sharing experience, making it safer, faster, and more scalable.
Here’s how:
Enterprise-grade security
- Always-on encryption through Microsoft Azure, ensuring data is protected in transit and at rest
- Security-hardened APIs, actively patched and monitored to minimize vulnerabilities
- Bug bounty program incentivizes finding and fixing issues before bad actors do
Full data control
- Direct data transfer, avoiding the risks of data sitting in unsecured inboxes
- Revocable access, so customers can remove permissions anytime
- Customers authenticate securely, no passwords are shared or stored
- Granular permissions via SSO, allowing internal sharing without forwarding files
- Proxies and filters to prevent ingestion of sensitive data like financial health or payment card information
Minimized operational risk
- Reduced attack surface, thanks to limited access scopes and strict authentication protocols
- Full audit logs track who accessed what and when
- Right-to-be-forgotten support helps banks manage data retention
The bottom line
Your customers already share sensitive financial data. The real risk isn’t in switching to API connections. It’s in sticking with processes that may be exposing you to more issues than you realize.
Codat helps your teams make the shift with confidence. We start by making sure everyone at your bank understands why API connections are safer, more reliable, and easier than email. Then we work with you to go live, without the internal friction, so you can start connecting customers and make it part of how your bank operates day-to-day.
If you’re already in touch with us, now’s the time to see what that support could look like in practice.
