FTP

FTP (File Transfer Protocol) is a standard network protocol used to transfer files between systems. In banking and credit union environments, it's often used for exchanging files with vendors, core systems, or third-party applications.

Because traditional FTP is unencrypted, most financial institutions use secure variants like SFTP or FTPS to ensure data is encrypted in transit and access is authenticated.

Why It Matters

FTP and its secure alternatives are essential for moving data reliably and consistently between systems. Without automated file transfer protocols, employees would have to move files manually, creating security and compliance risks.

Common FTP Uses

  • Transferring ACH and payment files to core systems
  • Sending encrypted reports to vendors and regulators
  • Moving daily batch processing files
  • Integrating third-party applications with banking platforms

How SimplifyIT Helps

Our platform integrates with orchestration tools and secure FTP processes, so file transfers can be triggered automatically by intranet workflows and logged for full audit trail visibility.

Common Questions

What does FTP stand for?
FTP stands for File Transfer Protocol. It's a standard way to transfer files between systems over a network.
Is FTP secure enough for banks and credit unions?
Traditional FTP is not secure, but secure variants like SFTP (SSH File Transfer Protocol) or FTPS (FTP Secure) encrypt data in transit and are widely used in financial institutions.
How is FTP used in banking?
Banks and credit unions use FTP/SFTP to exchange files with vendors, upload batch files to core systems, transfer ACH files, and move daily processing data between systems.

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