SOC 2 as a Competitive Advantage

Trust isn’t just a brand promise it’s a contractual requirement in many industries. For vendors selling into banks, insurers, fintech, and large enterprises, SOC 2 Type 2 can be the difference between winning a deal and being cut in the first round.

Here’s a real-world example where SOC 2 should be a lever for growth and how the absence of it has cost dearly.  Names have been removed to save the innocent 

The One That Got Away:

A mid-stage payments startup had everything a large retail bank wanted: innovative APIs, strong leadership, proven product-market fit.

But during vendor risk assessment, procurement asked a simple question:

“Do you have a current SOC 2 Type 2 report?”

The startup only had a draft Type 1 report and had done a PCI Self-assessment thinking that would cover everything. The bank’s third-party risk policy required a full SOC 2 Type 2 and a PCI Report on Compliance delivered by a Qualified Security Assessor. Within two weeks, the deal was dead.  The lack of reporting didn’t show a lack of control directly; it showed a lack of understanding of the market expectations and some naivety with respect to compliance obligations.

How it could have gone:

Imagine they knew procurement cycles could drag for 9–12 months. Before pitching, the CEO had invested in a SOC 2 Type 2 report covering Security, Availability, and Confidentiality.  They knew they could get some efficiency with their PCI assessment and selected a vendor that could do both. 1 ROC + SOC 2 = Big Win $£€.

When procurement asked for due diligence, the platform handed over a clean, independent SOC 2 report, skipping mountains of security questionnaires.  Having a PCI ROC to go with it showed they were well ahead of the payment card data used in the system and were immediately ready to be connected to the major payment brands

Why SOC 2 Matters Beyond the label:

• Procurement gatekeeper: Many organizations won’t even load a vendor into their system without a SOC 2.
• Risk management signal: Regulators pressure financial institutions to prove oversight of third parties. A SOC 2 report a straightforward solution.
• Competitive filter: If two vendors are equal on product, the one with a SOC 2 report may have a stronger position by establishing trust and willingness to have oversight upfront.

It’s tempting to see SOC 2 as just a compliance stamp. But in practice:

• Sales teams use it as a powerful tool. A clean SOC 2 report answers security objections before they slow deals.  This is a critical remover of friction.
• Investors view it as maturity. A SOC 2 report is evidence of process and consistency.
• Clients see it as assurance. It signals you can be trusted with regulated or sensitive data, year after year.

Executive Takeaway:

• Without a SOC 2, you might well lose deals at the first hurdle.
• With SOC 2 you accelerate procurement, remove friction, and strengthen credibility.

🔜Next in this series:Preparing for Your First SOC 2 Type 2 Audit: The C-Level Plan