A fintech startup learned about email security the hard way when attackers spoofed their domain to send phishing emails to customers. The emails looked legitimate—same branding, similar sender address—and directed customers to a fake login page. By the time the company discovered the attack, hundreds of customers had compromised credentials. The regulatory investigation that followed questioned why they hadn't implemented basic email authentication.
Email in fintech isn't just a communication channel—it's a security surface and a compliance obligation. Financial services face stricter requirements than most industries, and the consequences of getting email wrong are severe. Understanding these requirements is essential for any fintech building email infrastructure.
Security requirements
Financial services email demands robust security at every layer.
Email authentication (SPF, DKIM, DMARC) is non-negotiable. Spoofed emails from financial institutions are prime phishing targets. DMARC with p=reject policy prevents attackers from sending email that appears to come from your domain.
TLS encryption for email in transit should be enforced. MTA-STS or DANE ensures email connections are encrypted and authenticated. Financial data shouldn't travel in plaintext.
Sensitive data handling requires careful consideration of what goes in email. Account numbers, balances, and transaction details in email create risk if emails are intercepted or accounts are compromised. Many fintechs send notifications that link to secure portals rather than including sensitive details directly.
Phishing resistance goes beyond authentication. Train customers to recognize legitimate emails. Use consistent branding and sender addresses. Consider including verification elements that phishers can't easily replicate.
Access controls for email systems limit who can send on behalf of your domain. Compromised employee credentials shouldn't enable sending to all customers.
Regulatory compliance
Financial services email operates under extensive regulatory requirements.
Record retention requirements mandate keeping email communications for specified periods—often 3-7 years depending on jurisdiction and communication type. This applies to both sent emails and customer responses.
Disclosure requirements may mandate specific language in certain communications. Terms and conditions, fee disclosures, and regulatory notices often have prescribed content.
Privacy regulations (GDPR, CCPA, GLBA) govern how you collect, use, and protect customer data in email communications. Consent requirements, data minimization, and breach notification all apply.
Anti-money laundering (AML) and know-your-customer (KYC) processes may involve email communications that require specific handling and retention.
Accessibility requirements under ADA and similar laws require that email communications be accessible to people with disabilities.
Regulatory examination readiness means being able to produce email records, demonstrate compliance, and explain your email practices to regulators on demand.
Transaction notifications
Transaction alerts are among the most important fintech emails.
Real-time delivery is expected. When a customer makes a payment or receives a deposit, they expect immediate notification. Delays create anxiety and support contacts.
Security value is significant. Transaction alerts help customers detect unauthorized activity quickly. Prompt notification of every transaction is a security feature.
Content balance matters. Include enough detail for customers to recognize the transaction (merchant name, amount, last four digits of card) without including so much that a compromised email reveals sensitive information.
Customization options let customers control what they're notified about. Some want alerts for every transaction; others only want alerts above certain amounts or for specific account types.
Delivery reliability is critical. A missed transaction alert could mean a customer doesn't notice fraud for days. Invest in infrastructure that ensures these emails always deliver.
Account security emails
Security-related emails require special care.
Password reset emails are high-value targets for attackers. Use secure, time-limited tokens. Don't include the new password in email. Consider additional verification for password resets.
Login alerts notify customers of account access, especially from new devices or locations. These help customers detect unauthorized access but can also be noisy if not well-tuned.
Suspicious activity alerts warn customers of potential fraud. These need to be clear about what happened and what action to take, without causing unnecessary panic.
Two-factor authentication codes sent via email are less secure than authenticator apps but still common. Keep codes short-lived and clearly indicate they shouldn't be shared.
Account change confirmations for email address changes, phone number updates, or security setting modifications help customers detect account takeover attempts.
Regulatory communications
Some fintech emails are legally required.
Account statements may need to be delivered electronically if customers have opted for paperless. These have specific content and timing requirements.
Fee disclosures and terms changes often require advance notice—30 days is common. Email delivery must be documented and verifiable.
Privacy policy updates require notification to customers. The communication itself may have required content.
Regulatory notices for things like account closures, service changes, or compliance matters often have prescribed language and timing.
For all regulatory communications, maintain detailed records of what was sent, when, and to whom. You may need to prove delivery and content in regulatory examinations.
Email infrastructure for fintech
Fintech email infrastructure has specific requirements.
Dedicated sending infrastructure separates your email from shared pools where other senders' behavior could affect your deliverability. For financial services, reputation isolation is important.
High availability ensures critical notifications always send. Transaction alerts and security notifications can't wait for infrastructure problems to be resolved.
Audit logging captures detailed records of every email sent—content, recipient, timestamp, delivery status. These logs support compliance and security investigations.
Encryption at rest protects stored email data. If your email logs or templates contain sensitive information, they need appropriate protection.
Vendor due diligence for email service providers should verify their security practices, compliance certifications, and data handling. Your email provider becomes part of your compliance scope.
Customer communication preferences
Fintech customers have varying communication needs.
Preference management lets customers control what they receive. Some want every alert; others want minimal communication. Respect preferences while ensuring required communications still reach them.
Channel preferences may include email, SMS, push notifications, or in-app messages. Some customers prefer certain channels for certain communication types.
Frequency management prevents notification fatigue. Customers with high transaction volumes might want daily summaries rather than per-transaction alerts.
Quiet hours respect customer preferences about when to receive non-urgent communications. A marketing email at 3 AM isn't appropriate even if it's technically allowed.
Building trust through email
In financial services, email is a trust-building tool.
Consistency in sender addresses, branding, and tone helps customers recognize legitimate communications and spot phishing attempts.
Transparency about what you will and won't ask via email helps customers protect themselves. "We will never ask for your password via email" sets clear expectations.
Responsiveness to email replies, even for no-reply addresses, shows customers you're listening. Consider monitoring replies to transactional emails for customer issues.
Quality over quantity in marketing communications respects the relationship. Fintech customers trust you with their money; don't abuse that trust with excessive marketing.
Frequently asked questions
Should I include account balances in email?
It depends on your risk assessment. Many fintechs avoid including balances in email because compromised email accounts would expose financial information. Instead, they notify that activity occurred and link to secure login for details.
How long must I retain email records?
Requirements vary by jurisdiction and communication type. In the US, various regulations require 3-7 years for different types of financial communications. Consult compliance counsel for your specific requirements.
Is email secure enough for financial communications?
With proper authentication (DMARC), encryption (TLS), and careful content design (not including highly sensitive data), email is appropriate for most financial notifications. For highly sensitive communications, consider secure messaging within your app.
What compliance certifications should my email provider have?
SOC 2 Type II is standard. Depending on your business, you might also want HIPAA compliance (if health-related financial services), PCI DSS (if handling card data), or specific financial services certifications.