Currently, the new-age financial services technology i.e Fintech Application Development is upsetting the conventional bank systems, investment firm schemes, and throwing over the traditional insurance industry and other financial institutions.
FinTech is penetrating deep into the otherwise impenetrable trust levels of the conventional finance sector.
Though people have always trusted the traditional financial sector to protect their money, their valuables and their personal information secure at all times, an error here and there have brought about the need for the tech-infused financial sector in modern times!
Translating the current economic structure into a fully digitalized infrastructure is a significant transition.
However, not being safe enough during this transition is going to lead to security breaches, causing delays, layovers, failures, cyber-attacks, and other compliance issues.
Cyber attacks in the financial sector are never sophisticated❗
They are a culmination of social manipulations, engineering malfunctions, and significant weaknesses.
What Is FinTech?
Let’s begin by talking and understand what FinTech exactly is❗
FinTech apps, as we know them to finance sector applications that apply to a wide range of financial services and institutions, based on modern technological means like software, mobile devices, computers, and laptops, etc.
The vital services these applications offer are mobile banking, lending, wealth management, mortgage management, stock market trading, broking and advising, money transfers, and much more.
FinTech also refers to the technologies that allow for better payment gateways, cryptocurrencies, fundraisings.
FinTech as a concept takes its basis on mobile apps, more than anything, leading to technologies to adapt from different iterations from more prominent banking institutions. Financial Tech Companies should take note of this situation.
Securing The Modern-Day Financial Sector
Developing a finance-based app in the current times, therefore, asks for you to consider security as a prerequisite. Therefore, you need to focus on things first and foremost, without a pinch of a doubt.!
Getting the security for the rights of the financial application involves intricate levels of security fundamentals, risk mitigation techniques, and successful security demonstrations to boost your financial business app.
As a service provider, you need to take responsibility for securing and protecting the personal information of your users and your customers.
You need to take responsibility for securing their finances, their valuables, and their assets. You need to understand the fundamental requirements that your FinTech app is supposed to meet.
Where Can We Go Wrong?
Understanding security breaches when it comes to online financial applications and institutions is fundamental to develop a fully secure FinTech app.
There are three significant ways security breaches can happen and can cause severe damage to your business.
Over The Device
The first way a security breach can happen is through the device over which the application gets downloaded itself.
Any poorly written app has a lot of sensitive data which will be easy to tap into by the external users through the device itself.
Through Servers And Cloud Storage
Another primary site where potential security breaches can take place in the cloud storage or the servers.
Servers are often the primary cause since people don’t control them against major or minor security flaws.
Unauthorized users and third parties can quickly get a hold of the backend APIs and can tap into the servers, breaching all kinds of sensitive and essential information.
During The Transit Period
Yet another way security breaches can happen is when one app or a system is communicating with another system during operations.
During transit, whether it be transferring the payments or managing the account and wealth, gullible server connections can be targeted when it comes to security breach and interception.
There are multiple ways all these interceptions and breaches can get prevented. A few of them involve following through specific measures and steps during the development phase itself.
Ways To Secure FinTech Application Development Process
Ideally, the key to a robust FinTech application is hiring the right people who will develop it.
Hiring specialized security officers who will maintain your security fundamentals over the project is a must.
Their primary job is to ensure a stable structure for your finance based app and then integrate the right security provisions.
However, sometimes, the owners of these FinTech applications ignore to hire these security officers.
They offer to seek help from specialized professionals who can readily make room for a secure infrastructure in the development of these financial-based apps.
They often forget the fact that the security of finance apps lays over the management team as well, and not just over the developers and security officers.
Therefore, concentrating on hiring specialized FinTech App Developers for securing the finance app is the ultimate priority!
Focus On a Secure Architecture
Focus on developing a secure infrastructure is yet another priority to a long-lasting FinTech app. Data privacy and security are the cardinals when it comes to developing a safe, compliance-friendly, and relevant application.
The right strategy for this is to start by formulating a detailed policy of privacy and security provisions.
There are multiple architectures that your business can leverage when it comes to developing a custom-made secure FinTech app. The app so generated will be developed in an extremely regulated space.
Developing an app infrastructure from scratch will ensure that stakeholders gain what they require.
In fact, this is the best way to go about developing a secure FinTech app, by engaging in relevant testing mechanisms, QA, and other essential elements that form the premise of the financial business you are about to launch.
The most basic service architecture of a fully secure FinTech app includes:
- Server and database hosting
- Access Management
- Platform operations
- In-house communication team
- Compliance management and requirements
- Encrypted data transmission
- Secure payment gateway integration for banking transactions, crowdfunding, and lending.
Due to the shortage of essential tech talent, most investment corporations and financial institutions struggle to put together a capable team of developers and security officers.
In these situations, it is necessary to partner with an established development company or professionals who can offer you security along with a top-notch, secure infrastructure for the application.
Focus On Building Your Niche
The kind of mobile app you are looking forward to the building is going to navigate your way around the prominent security features that you desire.
Multiple Fintech applications are not directly involved with money and wealth. Instead, they are involved with social networking in the financial spectrum.
Some apps offer you live updates of the market and help you seek advice from the online community or enables you to expand your overall wealth base with essential updates and posts.
Privacy matters, therefore, need to be followed here as well, as the concept here involves social networking. Social networking paves the way to connect with multiple people around the globe, which could sometimes lead to cyber fraud.
Even though you do not require extraordinarily stringent and strict security measures, you will need specific fundamental rules that will store your information securely and not transmit it to people who have no role in the same.
Secure The Cloud Storage And Backend APIs
You are supposed to protect Cloud servers against any third-parties and external unauthorized users. For the same, securing your APIs is the key!
API security ensures there is no prominent data leakage of any kind. Fully secure APIs will also create a significant space for people to store their data and their official documents in a safe manner.
Moreover, you should not forget about running vulnerability tests to secure your FinTech app against network threats in the long run.
TLS or Transport Layer Security must be applied to the traffic to make the process even more secure. Additional security in the form of VPNs can also be added to ensure the same results.
Align Regulatory Demands And Data Protection
As far as safe development is concerned, compliance regulations and data security go hand in hand. Both aspects should be aligned together and revisited regularly during the development process. It is essential to do so as soon as your project starts developing.
Three things that you should keep in mind during this alignment are:
- The location of your highly sensitive data
- The steps to secure the same information
- The people who get access to this data
Ensuring these three aspects in terms of encryptions and firewall keeps a check on the overall security protocols of the FinTech app.
It will also ensure that the app data gets encrypted at all times. Setting up all the device based inventory controls, aligning entirely with the industry standards in cases of theft, stealing, and discarding can come from active firewalls and encryptions.
Aligning all the security provisions with longer compliance measures ensures a successful partnership with major financial institutions in the long run. It gives your business a long-lasting industrial collaboration.
Incorporate Two-Factor Authentication
As far as financial applications are concerned, a two-factor authentication implementation is always a great idea.
The two-factor authentication method is the most versatile way to enhance the security of your FinTech application. The primary authentication methods that only relied on usernames and passwords are not as effective as the two-factor authentication methods.
As a FinTech app developer or owner, you should be focussing on the incorporation of one-time use codes, that are sent to an individual via emails or text messages or even push notifications.
With a single touch or single code entry, users will move to their profiles securely. This way, you can also ensure a longer duration of compliance in a hassle-free manner.
Do not just focus on securing your user data through the two-factor authentication system, but focus on building a security code for your application right from the inception of the application.
Incorporating biometric identifiers, in addition to the necessary username and passwords is also an excellent option for people who are looking for a more in-depth security level.
Fingerprints, facial recognition, and other similar methods act as a significant defense for your FinTech app, to secure the data against any form of compromise and theft.
So now, if someone steals your devices, you won’t compromise the data. The reason behind that is, certain biometric features can transmit the IP address, the transmit location and other necessary details quickly.
Sensitive data on your FinTech app can be processed and secured over servers and user devices, which is why security codes are an indispensable part of development here! Security codes can fill all significant and minor gaps in your app development process.
Pay attention to these gaps and vulnerabilities which might prove to be bigger flaws in the long haul. Test these loopholes with useful security codes and only then proceed with the final deliverables.
Major financial institutions all across the globe have helped people set up automatic transaction notifications in the form of texts and emails. These notifications pop-up on your device screen, on a real-time basis, so that you are aware of all the developments at all times.
If any remote hacker does manage to get access to your data and your valuables, because of your username and password leak, you can notify your bank to block any activities that are happening through your bank account.
Therefore, if someone is trying to commit bank fraud and trying to loot all your money, you can call up your bank, talk to an expert and notify them so they can pull the plug on the bank account operations, so your risk of significant losses lessens.
This way, the bank can also carry on a separate investigation and help you with everything you require at this time.
Take The Help Of Digital Signatures
For multiple major and minor transactions, digital signatures are the biggest protective mechanisms against frauds. Digital signatures offer you a separate, third-party authentication along with end-to-end encryption to ensure active, stable, and fully secure transmission of data.
Digital signatures can also limit disputes between two different parties, so they cannot break or cease the terms and back out for various reasons. They do take a certain amount of time and money, but they are ideal when it comes to certain significant transactions between parties.
Rely On Extensive Testing
You should extensively test your final deliverables. It will help you to get your Fintech app ready for roll-out. It will also impress the users. The major financial institutions should get attracted to your security features.
Extensive testing here includes QA tests, penetrating tests to identify the vulnerabilities in the overall system, etc. The process is, of course, an ongoing one. This process helps you mitigate risks in the long run, even after the final application has hit the markets.
Usually, your FinTech Mobile Application Development partner and security officers that you had hired earlier handles the testing part. They can control every single aspect of the development process in an effective manner. It will allow the end-user to mitigate all risks easily.
Keep Your Users Protected
Your FinTech app development security measures do not end right when you are done testing everything out! It continues forever. You need to keep up with the measures to keep your users informed at all times.
One of the significant security measures here involves informing your users regularly on ways to improve their financial security. Ensuring your users get protection at all times offers a high level of authentication, unlike other mechanisms.
Ask for a feedback which will help you to know the app usage habits, ways and time each user take for accessing the account. You will also get some great insights into other things.
User should know the authentication steps for accessing their accounts. Ensure that steps to complete this process are short without compromising the overall security, which is crucial.
Users should also have clarity about thefts, missing communications, stolen data, and ways to turn any potential frauds away from their account details.
In cases of support, there should be enough support which ensures that you can shut down any personal account. You should think about that.
Set Up Your Responsibilities
Ensure you are not running out of responsibilities as well, even if you have hired the best FinTech app developers or corporations.
No matter what FinTech app you have managed to develop, personal transactions, banking, lending, or anything else, you should remember that you have to offer your collaboration as well!
Ensure you have regular meetings with the developers and the whole team to communicate necessary information between each other.
Ask them questions that you do not seem to understand and don’t forget to dig up on the information that you are willing to seek.
There are plenty of technical items you might not understand, which is why you need to put them up in your meeting agenda.
Another thing you can do to follow up on your responsibilities is to assign an efficient team member to take charge of your in-house security protocols.
These professionals are going to represent your organization to the developers directly, in cases of all major and minor issues. If you think you can do the job, you could very well be the person!
You need to make sure you are active at all times since you are going to work with people who are active themselves. You have to take the initiative from inception to the end.
Your FinTech application development idea is not just another idea. It could help you earn thousands or millions of dollars; the only prerequisite is to handle the security provisions at every single step!
Nowadays, when FinTech technology is booming worldwide, it becomes essential for all the business owners or the app developers to be aware of all its latest trends.
Now, security is one subject that remains in the discussion of the app developers. It has given sleepless nights to many app developers around the globe, and so, you should know about it.
Taking all these discussions into perspective, here we have provided an in-depth guide on how to make FinTech application development safe and secure which will be helpful to all the people.
We hope you had a great time reading this article and it helps you to become aware of FinTech Security issues – a subject that has been a killer buzzword in recent times. Thank You.!
Disclaimer: We at eSparkBiz Technologies have created this blog with all the consideration and utmost care. We always strive for excellence in each of our blog posts and for that purpose, we ensure that all the information written in the blog is complete, correct, comprehensible, accurate and up-to-date. However, we can’t always guarantee that the information written in the blog correct, accurate or up-to-date. Therefore, we always advise our valuable readers not to take any kind of decisions based on the information as well as the views shared by our authors. The readers should always conduct an in-depth research before making the final decision. In addition to these, all the logos, 3rd part trademarks and screenshots of websites & mobile apps are the property of the individual owners. We’re not associated with any of them.
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