FinTech security is something that needs to be at the center of any app development process. However, when it comes to implementing security measures, many financial institutions are having a hard time implementing secure flows that guarantee data protection.
With a growing digitalization of financial products and services through FinTech apps, companies are finding better ways to secure sensitive data. Still, many are failing to deliver the right FinTech security standards.
Data security has become one of the most critical priorities to prevent financial fraud for the FinTech sector. In this post, we discuss why FinTech security should be addressed throughout the app development process to guarantee the security of your users’ data.
The Importance of FinTech Security
Financial technology is revolutionizing an industry that was not exactly the poster child of innovation. Thanks to FinTech solutions, users and companies benefit in ways that would have seemed impossible just a few years ago.
However good the evolution of the FinTech sector has been, there are still many things that companies need to understand. Above all, interiorizing the importance of security in the financial services industry should be the number one priority.
The Responsibility of Financial Companies
Financial institutions have the great responsibility of safeguarding the money of their customers. That is one of the main reasons why people put their trust in them. If there is no trust, there is no point in having bank accounts or other financial goods.
This logic applies both to traditional financial institutions as well as to younger FinTech startups. FinTech, after all, is just a fragment of the financial sector that is heavily dependent on technology to provide specialized products and services.
The difference with traditional financial goods is that, with FinTech solutions, there is a lot more that can go wrong. Because of their high dependence on financial data, FinTech companies need to take security even more seriously.
Although this sounds like a problem, it isn’t. If your company builds a FinTech application, you just need to make sure to consider the different aspects involved in guaranteeing the correct FinTech security standards. But before we take a look into how to do this, let’s consider the risks of having a FinTech app with security flaws.
The Risks of Poor FinTech Security
Failing to provide the right FinTech security standards can:
- Make you prone to critical data breaches
- Erode your users’ trust in your brand
- Affect the lives of millions of people
- Result in sanctions from regulators
- Impact the share value of your organization
- Undermine confidence in the FinTech sector
Security flaws can affect your business in every possible way. The truth is that you will never be able to eliminate all of these risks even if you implement the most sophisticated information security management system.
Nonetheless, you can minimize the risks of potential security flaws. Data breaches and other security failures tend to occur in poorly built digital products. To avoid this situation, it is important to focus on the development process of your app.
The Role of FinTech Apps
We often tend to forget that financial technology like FinTech apps relies heavily on software development processes. How an app is built will determine many aspects of its operations, security flaws included.
In most cases, financial fraud can be prevented by making the right development decisions. The best FinTech security solutions are embedded into the very design of the software itself. These solutions go beyond the basic requirements of general data protection regulation (GDPR).
By considering the different aspects of your app, you will be able to improve your data security. You can build a better User Experience to address problems like identity theft, stolen bank accounts, and many other security flaws.
FinTech Security Solutions
There isn’t a one size fits all solution to address FinTech security issues. These problems need to be systematically approached to find the best solution.
A specialized security team is often a great way to test your app’s security. Security experts can help you protect sensitive data by identifying potential security flaws through QA testing methods. Once a problem is identified, they can easily solve it.
When it comes to data protection and building a secure experience, some of the best practices include:
- Using a triple data encryption standard
- Performing Quality Assurance tests
- Implementing Machine Learning features
- Introducing secure access service edge (SASE) solutions
- Configuring a safe cloud environment
- Using decentralized Blockchain solutions
Following these alternatives can help improve FinTech security. They are not the only options available. However, by implementing them, you will improve your app’s data protection.
Protect Sensitive Data
Data protection should be at the center of your application. By considering the different security aspects of your financial application, you will be able to increase data protection, delivering users a better experience.
Security flaws can have a terrible impact on your business. To avoid them, financial institutions need to work with qualified app developers who understand what it takes to protect your data and safeguard your business. This is the smartest path to FinTech security.
