Managed File Transfer (MFT) is a software solution that facilitates internal and external data exchange within companies. MFT allows you to automate, configure and manage transfer processes. It guarantees a high level of transparency but also a high level of security. Learn about the pros and cons of MFT and the tasks it is used for.
How does MFT work?
Managed File Transfer is a technology offered as an On-Premises application or as Software as a Service (SaaS). It is thus distinguished from pure network protocols such as File Transfer Protocol (FTP) or SSH Transfer Protocol (SFTP). First, the files are uploaded and encrypted in the MFT system. To do this, we use secure protocols as a connection such as FTPS, SFTP or HTTPS. These transmit the data to the target system or other applications. All activities are then logged to ensure they meet compliance requirements. This archiving facilitates subsequent checks.
The graphic below illustrates how data exchange with MFT works between internal and external systems:
What are the advantages of MFT?
Advantage 1: security
MFT solutions generally include encryption procedures such as end-to-end encryption (E2EE) to protect data, both in transfer and at rest. MFT is therefore more reliable and carries fewer risks than FTP. Additionally, regular security checks and real-time monitoring help prevent data breaches that can quickly become costly.
Advantage 2: efficiency
Data is exchanged securely and efficiently between different systems and locations. There is also no problem with the large data volumes. Additionally, Managed File Transfer supports extensions for a multitude of platforms, mobile devices, databases, and ERP and CRM applications.
Advantage 3: Compliance
Businesses can configure MFT to ensure their compliance with strict standards. This includes regulations such as the General Data Protection Regulation (GDPR), Payment Card Industry Data Security Standards (PCI DSS), Basel II, Health Insurance Portability and Accountability Act (HIPAA), as well as the Sarbanes-Oxley Act (SOX).
Advantage 4: readability
Due to great transparency Due to process logging, it is possible to better assess risks and correct possible data transmission errors more quickly, or even avoid them.
What are the disadvantages of MFT?
Disadvantage 1: the price
MFT is often more expensive than setting up an FTP server: its extended features are only possible at the price of specialized hardware and software components.
Disadvantage 2: complexity
As a software platform, MFT is more complex to implement and requires some technical mastery. People who use it must first be trained in the system.
Disadvantage 3: maintenance
Local MFT systems must be maintained regularly to stay secure, which often requires a lot of resources and time. However, Managed File Transfer also exists in SaaS form, with updates and maintenance automatically taken care of by the provider.
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What are the typical application fields of MFT?
Managed File Transfer is primarily aimed at businesses that need to manage and transfer large quantities of sensitive data. Here are the MFT’s preferred sectors:
- Finance : MFT allows the secure transmission of confidential financial information such as account details, transactions or bank card data
- Health : Hospitals or medical practices use MFT to manage and transmit electronic patient records, laboratory results or x-rays in accordance with confidentiality requirements
- Government organizations : state institutions use Managed File Transfer for the transmission of sensitive or defense secret information such as tax or customs data
- E-commerce : The e-commerce industry often generates large amounts of data associated with orders, invoices and transaction data, which can be efficiently recorded and exchanged between businesses and customers using MFT
