DataOceans, a provider of customer communications solutions for regulated industries, explained that proposed regulation from the U.S. Securities and Exchange Commission (SEC) could impact more than just the investment community, but perhaps auto lenders and other firms involved in financial services, as well.

Earlier this summer, the SEC proposed Regulation E-Delivery, a new rule that would expand the ability of issuers, broker-dealers, investment advisers, and others to use electronic delivery to satisfy information delivery requirements under the federal securities laws.

Regulation E-Delivery would make information more readily accessible and useful for investors and others while preserving the ability to receive delivery in paper format on request.

Currently, the SEC said required regulatory information typically is delivered in paper format unless the recipient affirmatively elects otherwise. The proposed e-delivery approach includes requirements and conditions under which required information could be delivered electronically without first obtaining affirmative consent.

According to a news release, the method generally would supersede the SEC’s decades-old, guidance-based e-delivery approach and provide savings to issuers, market intermediaries, and, ultimately, investors, in paper, printing, and postage costs.

DataOceans contends that consumer lenders face similar considerations as they digitize other time-sensitive communications. For example, organizations are exploring secure digital delivery of adverse action (AA) notices, in which speed, proof of delivery, customer access, and regulatory compliance are critical.

While SEC chairman Paul Atkins said in a statement that the proposal is “an important step toward allowing the financial services industry to harness technology for the benefit of everyday American investors,” he also added that, “In an age of artificial intelligence and blockchain technology, a default to paper delivery should be a relic, not a standard.”

DataOceans reiterated the SEC proposal highlights the growing need to manage the entire communication lifecycle through a single, governed platform whether delivering investor disclosures, billing statements, regulatory notices, such as adverse action letters, or other critical customer communications.

The service provider pointed out that creating content once and delivering it consistently across print, digital, email, SMS, and self-service channels can help organizations maintain communication histories, retrieve documents on demand, and apply consistent governance, approval workflows, and version control.

“Many organizations think digital transformation means replacing paper with electronic delivery,” DataOceans president Lee Nagel said in a news release. “In reality, customers expect a consistent experience regardless of how they choose to interact.

“Whether someone views a document online, receives it by email, accesses it through a portal, or requests a printed copy months later, organizations need confidence that every version is accurate, accessible, and governed,” Nagel continued.

Rather than viewing electronic delivery as a replacement for print, Nagel mentioned that organizations should consider how every interaction fits into a connected communication strategy that supports digital engagement while continuing to meet paper fulfillment requirements when needed.

As organizations continue to modernize customer engagement, Nagel added the SEC proposal serves as another reminder that digital transformation is not about replacing one channel with another. It is about building communication strategies that can adapt to changing regulations, evolving customer expectations, and new delivery channels without increasing operational complexity.

“Customer expectations continue to evolve, but so do regulatory requirements,” Nagel said. “Organizations need the flexibility to support every delivery preference while maintaining control over every communication. That’s what connected customer communications are really about.”