Who Needs a SOC 2 Report?

If you're a compliance officer or CISO at a SaaS or tech company, you've probably been asked this question before: "Do we need a SOC 2 report?" Perhaps the question came from a sales team member who's trying to close an enterprise deal, or maybe from a prospective client during their vendor due diligence process. The answer isn't always straightforward, but understanding who needs a SOC 2 report—and why—can help you make the right decision for your organisation.

In this post, we'll break down exactly who needs SOC 2 compliance, when it becomes a business requirement, and how this framework can become a strategic asset rather than just another compliance checkbox.

What Is SOC 2 and Why Does It Matter?

Before diving into who needs it, let's briefly clarify what SOC 2 actually is. SOC 2 (System and Organization Controls 2) is a compliance framework developed by the American Institute of Certified Public Accountants (AICPA). It's designed specifically for service organisations—companies that store, process, or transmit customer data—to demonstrate that they have effective controls in place to protect that data.

SOC 2 evaluates controls across five Trust Services Criteria: Security (mandatory), Availability, Processing Integrity, Confidentiality, and Privacy. The framework comes in two flavours: Type 1, which assesses controls at a single point in time, and Type 2, which evaluates the operating effectiveness of controls over a period (typically 3–12 months). Type 2 is generally what enterprise clients expect.

Unlike regulatory mandates like GDPR or HIPAA, SOC 2 is not legally required. However, it has become what many in the industry call "table stakes"—a baseline expectation, especially in B2B relationships where data security and trust are paramount.

Who Actually Needs a SOC 2 Report?

SaaS and Cloud Service Providers

If your company provides software as a service or cloud-based infrastructure, SOC 2 is almost certainly on your radar—or it should be. SaaS companies routinely handle sensitive customer data, from user credentials to proprietary business information. Enterprise buyers want independent verification that you have robust security controls in place before they entrust their data to your platform.

In our experience working with SaaS and tech companies across Europe, SOC 2 has become a contractual prerequisite in more than 70% of enterprise deals. Procurement teams include it in their vendor risk assessments, and sales cycles can stall—or deals lost entirely—if you can't produce a current SOC 2 Type 2 report.

Fintech and Financial Services

Financial technology firms, payment processors, and financial services companies handle some of the most sensitive data imaginable: payment card information, banking credentials, and personal financial records. Clients in this sector face stringent regulatory scrutiny themselves, and they pass that expectation down to their vendors.

A SOC 2 report provides assurance that your organisation maintains the controls necessary to protect financial data and maintain processing integrity—critical for any company involved in transactions or account management.

Healthcare and Healthtech Companies

Healthcare organisations dealing with Protected Health Information (PHI) are often required to comply with HIPAA. However, HIPAA alone doesn't always satisfy the broader security concerns of healthcare clients, especially when services are delivered via cloud platforms or mobile applications. SOC 2 complements HIPAA by providing a comprehensive view of your security posture, including availability and confidentiality controls that go beyond HIPAA's baseline requirements.

Healthtech startups and telehealth platforms, in particular, are finding that SOC 2 is now expected as part of vendor onboarding, especially when partnering with hospitals, insurance providers, or large healthcare systems.

Managed Service Providers (MSPs) and IT Service Companies

MSPs often have privileged access to their clients' networks, systems, and data. This level of access creates significant risk for clients, making independent verification of security controls essential. Whether you're managing cloud infrastructure, providing helpdesk services, or offering cybersecurity monitoring, a SOC 2 report demonstrates that you treat client data with the same rigour you'd expect from your own vendors.

E-Commerce and Retail Platforms

If your platform processes customer transactions, stores payment information, or manages user accounts and personal data, SOC 2 can help differentiate your business in a crowded market. While PCI DSS addresses payment card security specifically, SOC 2 covers the broader organisational controls around data security, giving customers and partners confidence in your overall governance.

Professional Services Firms

Law firms, HR consultancies, accounting firms, and other professional services organisations increasingly handle client data through cloud-based platforms and collaboration tools. As these firms expand their digital footprint, clients—particularly enterprise clients—are beginning to expect the same level of security assurance they demand from technology vendors.

When Does SOC 2 Become a Contractual Requirement?

SOC 2 isn't mandated by law, but it has become a de facto requirement in many business relationships. Here are the most common scenarios where you'll be asked for a SOC 2 report:

Enterprise sales cycles: Large organisations routinely include SOC 2 (usually Type 2) as a requirement in their vendor risk management programmes. If you're moving upmarket and targeting enterprise clients, expect to be asked for proof of compliance.

Master Service Agreements (MSAs): Many contracts now include clauses stipulating that vendors must provide an annual SOC 2 report as a condition of doing business or renewing the contract.

Regulated industries: If your clients operate in finance, healthcare, or government, they will almost certainly require independent verification of your security controls. SOC 2 is one of the most widely recognised frameworks for this purpose.

Investor due diligence: Private equity firms and venture capitalists increasingly evaluate cybersecurity and compliance maturity as part of their investment decisions. Having a SOC 2 report in place can accelerate fundraising and signal operational maturity.

The bottom line? If you're selling to enterprises, handling sensitive data, or operating in a regulated sector, you should assume SOC 2 will be required at some point—if it isn't already.

The Business Benefits Beyond Compliance

While the immediate driver for SOC 2 is often a client requirement, achieving compliance delivers broader strategic advantages:

Competitive differentiation: In crowded markets, a SOC 2 report can set you apart from competitors who haven't invested in formal assurance. It's a trust signal that resonates with security-conscious buyers.

Operational improvements: The SOC 2 process forces you to formalise policies, document controls, and close gaps in your security posture. Many organisations find that the audit uncovers weaknesses they didn't know existed, ultimately making them more resilient.

Faster sales cycles: Rather than responding to endless vendor questionnaires and bespoke security assessments, you can share a single, standardised report that satisfies most clients' due diligence requirements.

Scalability: As your business grows, SOC 2 provides a repeatable framework for maintaining security and governance at scale. It's far easier to onboard new clients, enter new markets, and integrate acquisitions when you have a proven compliance programme in place.

At Securance, we've seen how the Single Audit, Multiple Standards approach can streamline the compliance process, enabling organisations to meet SOC 2 alongside ISO 27001 and other frameworks in a single, integrated audit. This not only reduces the burden on your team but also maximises the return on your compliance investment.

How to Know If You Need SOC 2

Here's a simple decision framework:

Do you store, process, or transmit customer data? If yes, SOC 2 is relevant.

Are you selling to enterprise clients or planning to in the near future? If yes, start preparing now. Waiting until a client demands it can delay deals by months.

Are your clients in regulated industries (finance, healthcare, government)? If yes, SOC 2 is likely already a requirement or will be soon.

Have you been asked to complete vendor security questionnaires repeatedly? A SOC 2 report can replace many of these ad hoc assessments, saving time for both you and your clients.

If you answered "yes" to any of these questions, it's time to consider SOC 2 seriously.

Final Thoughts

SOC 2 is no longer just for large enterprises or highly regulated industries—it's becoming an expectation for any service organisation that values customer trust and wants to compete in today's market. Whether you're a SaaS startup aiming to land your first enterprise client, a fintech scaling into new markets, or an MSP managing critical infrastructure for clients, a SOC 2 report can open doors, build credibility, and strengthen your security posture.

The key is to view SOC 2 not as a compliance burden, but as a strategic investment in your organisation's growth and resilience. And if you're feeling overwhelmed by the process, remember that you don't have to go it alone. Working with experienced advisors who understand both cybersecurity and assurance can make all the difference, turning what seems like a daunting audit into a clear, manageable path to compliance and beyond.