Financial institutions and the return of corporate-liable lines.
Company-issued devices are popular once again thanks to increased regulatory needs and more affordable, more reliable international data networks.
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KEY TAKEAWAYS
- Corporate-liable (CL) lines were once the norm, but largely disappeared when cost savings made bring-your-own-device (BYOD) policies more reasonable. Now, CL lines are making a resurgence as financial companies look to improve security and compliance.
- The non-negotiable need for corporate-issued devices is reliable coverage. Executives and other users in the U.S. must have dependable connections in both metropolitan and rural areas, as well as seamless international coverage.
- Firms deciding on CL policies are selecting their carrier thanks to several other key factors, including long-term value, the ability to choose the latest devices, and dedicated customer service.
- Financial services is the most hacked industry in the world, and CL lines are important tools for mitigating security risks. CL lines also support regulatory reporting, further minimizing corporate risk.
When mobile devices first saw widespread adoption among financial institutions, in the late 90s, corporate-liable (CL) lines were the norm. Think PalmPilots and, later, BlackBerries. Expecting employees to self-fund these devices as business expenses would have been unthinkable, least of all for executives and other revenue-generating employees. Equally unacceptable was the idea of company and client data being transmitted and stored on anything other than company-vetted property.
Policies abounded about the use of CL devices, including the possibility of termination for using CL devices for personal use. This was one of a handful of factors contributing to the gradual shift toward bring-your-own-device (BYOD) as an option, and eventually the new norm. Employees—particularly at senior levels—wanted the flexibility of a single device for business and personal use. Increasingly, the devices employees wanted—smartphones and laptops—were the latest in technology innovation and prestige. In the mid-to-late 2000s, those were expensive Apple products. Financial institutions calculated that it was most cost-beneficial to allow BYOD and reimburse employees with a fixed stipend.
Now, the trend seems to be reversing course. Since 2020, financial institutions have begun to embrace CL policies again. This shift is the result of several factors.
More control, lower risk.
First, there have been rising regulatory pressures after high profile cases of misuse or abuse of apps on BYOD devices by employees—notably, deliberately concealing transactions in encrypted apps. A related challenge is that business transactions conducted via text message or WhatsApp for the client’s convenience—while not inherently problematic—might constitute a violation of SEC recordkeeping regulations.
“The perceived benefits of the BYOD policies of the 2010s are increasingly outweighed by the risks. And these risks have real costs,” said Katherine Hill, Financial Services Marketing Expert. “Major financial institutions have racked up over $2.5 billion in SEC fines for failing to properly keep records of mobile devices communications."
"The perceived benefits of the BYOD policies of the 2010s are increasingly outweighed by risks. CL devices can reduce the complexity of enforcing regulatory and corporate policy enforcement."
Katherine Hill, Financial Services Marketing Expert.
There is a growing perception among financial institutions that CL lines and devices offer increased visibility or even control over employee communication with clients and traders. “CL devices can reduce the complexity of enforcing regulatory and corporate policy enforcement,” added Hill.
Security is another reason firms are reconsidering CL devices. The financial services industry is the most hacked in the U.S. and third most hacked worldwide. Corporate management of devices is one tool for mitigating the risks of hacking, social engineering, or other breach points.
Finally, the purchasing power of financial institutions has lowered the costs of CL lines relative to BYOD stipends.1 It also simplifies billing, expense management, and IT support related to mobile devices and services. This has changed the cost-benefit analysis even without factoring in regulatory and security risks.
Must-have features.
For firms considering CL policy adoption, several factors are now a baseline
expectation of carriers.
Global coverage:
Reliable coverage is non-negotiable for financial institutions conducting business throughout the U.S. and around the world. For U.S.-based plans, this not only means consistency in metropolitan areas, but consistency in rural areas, too. Seamless coverage when traveling internationally is also a top-rated feature. For plans based in global headquarters, Global Heads of Mobility and related decision makers express a strong preference for carriers with strong carrier alliances.
Value:
Financial institutions tend to evaluate telecoms and other technology vendors on longer-term benefit over cheapest price. Factors include customer service, ease of purchasing and upgrading, access to peer benchmarking insights, and the financial health of the vendor. Availability of add-on features, such as compliance automation, and security based on zero trust principles are another consideration.
Device choice:
Companies expect to easily be able to purchase the latest phones, tablets, and even wearables. There is also an emerging expectation of "connected laptops," which are laptops with built-in SIMs for reliable coverage while traveling.
Data plans:
Data plan options are another priority, including unlimited data, premium data allowances, filters to optimize productivity and business performance, domestic roaming, and global support.
Priority customer service:
Financial institutions expect dedicated and responsive customer support teams, well-versed in their unique industry needs.
A leading network for financial institutions.
Top U.S. 5G coverage.
The numbers tell the story: Our Ultra Capacity 5G reaches 300 million people in the U.S., bringing enhanced 5G speeds to metro areas, where many major financial firms are located. And our Low-band Extended Range 5G extends to rural areas, covering over 2 million square miles—more than Verizon and AT&T combined.
Seamless global reach.
3x
faster overall network download speeds than Verizon.
2.5x
faster overall network download speeds than AT&T.
Attractive data plans.
Connected laptops.
Employees losing connectivity or system access can trigger direct and substantial business costs. The estimated average cost of a data center outage is $9,000 per minute or $500,000 per hour, according to the Ponemon Institute.
T-Mobile for Business connected laptops feature4:
- Unlimited 5G and 4G LTE data coverage on our network
- Premium data allowances
- Productivity filters to support business performance
- Domestic roaming
- Global support across 215 countries and destinations
Financial services firms are required to record and archive business communications, due to regulations from the Securities and Exchange Commission and the Commodity Futures Trading Commission.
Next steps.
Financial services firms selecting carriers for corporate-liable lines look for a large and fast network with global reach, attractive data plans, device choice, and security and compliance options.
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³ Fastest based on median, overall combined 5G speeds according to analysis by Ookla of Speedtest Intelligence data for Q4 2023. Ookla trademarks used under license and reprinted with permission. See 5G device, coverage, & access details at
⁴ During congestion, heavy data users (>50GB/mo. for most plans) and customers choosing lower-prioritized plans may notice lower speeds than other customers; see plan for details. Video typically streams on smartphone/tablet in SD quality.
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