Managed File Transfer in 2025: Supporting IT Transformation

COMMENTARY: Each year, CIOs and other IT executives face new challenges when it comes to transformational IT goals. While the main driver of IT transformation is laying the groundwork for productivity and efficiency, there is an intersection with digital transformation. Improving the company’s overall digital experience is now a shared responsibility. To achieve impactful business results, today’s leaders must make improvements across every aspect of their organization.

With the onset of business challenges and evolving compliance regulations, the method for transferring mission-critical data introduces mandates for enhanced security and compliance when it comes to file transfers between systems, applications, and individuals within and outside organizations. This is where managed file transfer (MFT) comes into play and serves as the foundation for both IT and digital transformation.

For MSPs, offering secure and compliant MFT services can serve as a competitive differentiator and drive business growth in an area many organizations don't realize can facilitate enhanced, accelerated digital transformation.

Security, Compliance and Privacy: The Key Pillars of Managed File Transfer

At its core, MFT provides businesses with a centralized system for managing file transfer workflows. The key pillars of MFT are security, compliance, and privacy. It serves as the vital bridge for companies with data across legacy or disparate systems. For MSPs, investing in MFT lays the foundation for enhancing IT integration capabilities, enabling customers to securely manage data flow, whether inbound or outbound, in the cloud or on-premises, within a controlled environment.

Why You Should Avoid Deploying File Transfer Protocol (FTP)

For some, MFT is a relatively new concept, even though it has been around for decades. And while a method like FTP is commonly recognized, MSPs should stress that FTP is not suitable for organizations handling sensitive data. As part of an IT transformation project, IT risk assessments are performed, and the presence of FTP servers creates security vulnerabilities that can’t be ignored. This is a huge selling point for MSPs looking to tout their managed file transfer services and solutions.

FTP's capabilities fall short of meeting today’s advanced security requirements. Reputable MFT solutions offer end-to-end encryption, advanced reporting, and security features. FTP does not meet HIPAA encryption standards or PCI DSS requirements for secure data transmission, and it lacks the necessary access controls and audit capabilities required by the GDPR. The trifecta of non-compliance poses a risky situation for anyone handling sensitive information, and the resulting loss of reputation is costly. Luckily, there are alternatives.

Enhance the Security of Your File Transfers with MFT

MFT systems are regarded as a preferred choice when evaluating approaches to better secure file transfer activities. MSPs, MSSPs, and IT transformation leaders can turn what is currently a potential liability into an opportunity to streamline data transfer workflows while improving IT operations. By building on MFT as the foundation, organizations can make progress toward IT transformational goals more quickly.  

While MFT intersects with customer experience behind the scenes, its seamlessness is a testament to the power of features like automated batch processing. When it comes to file transfers within banking or financial institutions, end-users will not see the MFT interface; however, they will experience the speed, accuracy, and timeliness of Automated Clearing House (ACH) and Electronic Funds Transfer (EFT) transactions.

In the example of ACH and EFT, MFT supports efficient and secure delivery of transfers by integrating with core FinServ banking system solutions for automated file transfers, tracking, and monitoring. Additionally, MFT provides backup capabilities that enhance the overall customer experience. When banks deliver on what is expected without disruption, both their customers and financial partners feel a strong sense of trust, which is where the relationship is built. Most financial institutions’ staff are on the relationship side of the business, as opposed to IT, and they are tasked with promoting the banks’ expertise and commitment to providing safe and dependable financial services.

MFT: A Key Component of Your IT Transformation Journey

Managed file transfer is not just about moving files; it is the catalyst for some organizations to move toward more automated, secure, and compliant data transfer workflows. MFT is a crucial component of any organization's IT transformation journey. It reduces the reliance on manual scripting and traditional FTPs and supports a more centralized approach with the potential to scale operations, including cloud adoption.

The right approach to MFT in 2025 covers strategies for improving security, achieving compliance, and minimizing disruptions. As organizations modernize their IT infrastructure, MFT will emerge as the tool to support consistent, reliable, and compliant data transfers for industries of all types.

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