Table of Content
The potential of Fintech Sector
Major Security challenges
What aspects will protect your fintech Apps?
Large or small businesses are driven by software technology that makes a huge difference in the market. Financial business was already making a difference by integrating technology in its business offerings. This has lately innovated as a different unique stream called Fintech for business. Fintech technology has so much to offer apart from just financial services, it offers financial software development, improved customer services, mobile access to customers, simplified banking, withdrawal and money transfer all at fingertips. But when technology has moved ahead of time, there are potential threats that interrupt these processes. If you wonder what are they? Then there are cyber security threats, or cyber attacks and their interactions are some of the reasons that makes businesses not prefer Fintech services.
Security being one of the strongest reasons why businesses fail in establishing a successful Fintech business.This is because you know and are aware of the fact that the data breaches and security threats are literally taking away the world like a storm. Every financial software development company wants to transform conventional banking services into fintech offerings but is scared of investing in technology. This is because if they fail in ensuring security of data then the repayment will be huge and unpredictable.
One of the largest data breaches and security concern or data thefts has occured around the corner in recent times giving birth to greatest risk for the industry. There are immense benefits offered by the fintech business which you will see in this blog. We have also showcased the potential things that should be included in your plan in order to make a secure and cost effective way.
For this we must understand the reality of the Financial Landscape by knowing the facts and statistics from ongoing trends.
The recent potential thefts of Fintech Sector
Can you imagine a theft of $2 billion happening online for a business. Think of the loss one suffers due to such activities. There are many illegal activities occurring at fingertips. Well,Phishing is behind all this. It is one of the most heinous crimes in the financial sector. Not that it is restricted to one method of theft there are plenty of them and newer ones are getting added too. The fact sheet says from Fortunely’s statistics shows the devastating effects of cyber thefts and cyber attacks on financial industry breaches:
- Cyberattacks cost the banking industry an average of $18.3 million per company per year.
- In 2020, there will be more than 60% of IT security professionals who think cyberattack is imminent.
- 8 out of 10 Americans are concerned that firms will not be able to protect their financial information.
- Over 60% of online fraud is performed through mobile platforms;
- The sum paid to ransomware scammers has surpassed $1 billion each year, according to the FBI.
- One of the most affected industries by breaches has targeted payment card data, retail sector and finance and insurance industry.
These are all the current scenarios and this is the situation of the banking sector. Whenever they wish to create a fintech app, there are thousands of security parameters that they need to consider before an app development. With every innovation and discovery this process of data protection and information security becomes an area of consideration.
Lets see some of the major security challenges that businesses know and must take care of.
Major Security challenges
We need to investigate the main security concerns in order to acquire an understanding of the most effective and successful security methods for Fintech initiatives. Here we will be showcasing some of the most common ones.
- Identity Thefts on Digital Platforms
It deals with a lot of sensitive and significant financial information such as passwords, bank accounts, and identification data. However, the security of IDs is always a concern for customers because password-based systems are subject to cyberattacks.Fintech businesses utilise one-time passwords (OTP) and risk-based authentication to strengthen existing biometrics technologies. WIth this you are able to authenticate user’s geolocation, biometric data, and other information. In Fact there are two-way authentication services as well nowadays.
2.Data Migration on cloud
For greater speed, scalability, availability, and cost efficiency, fintech organisations rely on cloud solutions. However, there can be issues in the beginning when your data moves between different contexts, it becomes more difficult to monitor. It’s critical, especially in the Fintech industry, to use technologies that can manage your cloud solutions with complete integrity. As it turns out, as the number of parties and technology involved grows, so does the number of vulnerabilities.
3.Third Party integration Risks
Unreliable payment gateways, Chatbots and other third-party integrations can jeopardise the security of your Fintech product. So integrating with third-party components such as payment gateways, analytics systems, and social media buttons, ensure secure networking. Suggestions say that their number be reduced or that these components be developed from the ground up.If you require complex functionality that is beyond your scope of knowledge, select dependable partners and vendors whom you can continually monitor.
- Blocking Security Protocols
Your Fintech firm must adhere to the laws and regulations of the country in which it operates.
The continuously growing understanding of digital data in the economy is created because of the new problems faced by customers. These problems invaded some of the sensitive content of customers. Therefore countries like Europe drafted a regulatory norm. This resulted in the creation of two European regulations: the General Data Protection Regulation (GDPR) and the ePrivacy Regulation, which tackles data issues arising from digital communications. You must take consent requirements for cookies, use it as vital aspects to protect data of your fintech Apps.
What aspects will protect your fintech Apps?
They say Necessity is the mother of invention. So, if things are invented in favor of humans then other discoveries can also be made to protect the data and data breach. Encryption is inevitably important to safeguard data during transferring from one location to another. This is because, at this moment it is highly vulnerable and easily intercepted.The employment of various encryption methods is required for secure data transfer.
Complex encryption techniques, such as the following, can be used to safeguard critical data:
This is an algorithm which is asymmetric and comes with a private encryption key and a public encryption key and is considered extremely safe.
This is a freeware technique to encrypt 128-bit data blocks.
You can protect the credit card PINs, with this chosen encryption approach. Data is divided into 64-bit blocks using Triple DES, which encrypts each one three times. That’s why the name is 3DE.
Blocking through financial software development strategies
Consult a financial software development company when you see some suspicious behaviour. This can be flagged as a strategy to prevent fraud. Use something that will stand out from typical user behaviour, such as unusually large quantities of money moved from odd locations. Many financial institutions have obtained ISO-27001 certification in order to meet stringent security requirements. Although the certification and approval process is lengthy, holding that certificate signifies that your company adheres to the highest security standards.
In a nutshell, from this blog, we have seen how important it is to maintain security for your fintech applications. For securing your highly sensitive and important data, it is equally important to have in-depth knowledge of financial services and ways to protect data. As we know, fraud is increasing, we have seen statistics to see the impact of this in the modern market. All you need is to have competent software professionals to develop your fintech app. Partnering with knowledgeable and highly-skilled software engineers backed up with specific domain knowledge and business logics is highly suitable. The development team you hire for your financial software development will ensure to what level your data is protected and how much it meets the security standards.