Top FinTech App Security Solutions in 2024

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  • High speed, design, and simplicity are the winning attributes of advanced FinTech apps.
  • Yet, firms must pay attention to the security risks and their solutions for FinTech apps if they want their customers to use them safely.

The world is gravitating towards using apps more than ever. As per a recent report by Business of Apps, “App Download Data (2023),”

  • In 2021, more than 100 billion apps were downloaded
  • It is expected to reach 200 billion by 2025.

Moreover, the finance sector is heavily invested in developing FinTech apps for various banking and finance services. They are proactively developing cutting-edge security solutions to offer seamless app services.

Since, the apps house users’ data, they become a prime target for hackers. Hence, firms should prioritize developing financial app with high security, speed, and a secure interface.

Here are the top FinTech app security solutions in 2024:

Security Code and Architecture

Designing an app’s logic involves integrating security into every step of its usage. Any vulnerabilities or gaps could serve as entry points for malware assaults or data breaches, negatively impacting the app’s functionality.

Securing financial apps requires well-written algorithms and often checking codes for errors. Lastly, it is essential to test everything to ensure the security’s effectiveness and encryption at every significant step, especially during transmission.

Practice Code Obfuscation to Prevent Cloning

Hackers create clones of the apps to collect the user’s details, leading to data malware or phishing attacks. Hence, FinTech firms must use code obfuscation, which involves-

  • encryption
  • eliminating metadata
  • using false tags
  • adding meaningless code to an app binary.

This helps prevent the probability of vulnerabilities and distracts the attacker from relevant content.

Regulatory Technology (RegTech)

Many FinTech firms face extensive challenges for regulatory compliance. RegTech aims to assist financial firms in meeting compliance regulations using cutting-edge technologies.

Modern financial apps increasingly incorporate tech, which calls for strict security controls to protect apps. RegTech service providers help firms by offering software that facilitates identity management, data protection, and app transaction management.

Since customers use FinTech apps to swap, exchange, and for transactions, it is crucial to include tight security measures with the help of RegTech to keep the apps secure. These apps need advanced security solutions to withstand different threat attacks and breaches.

Using AI and ML to Track User Transactions

Since the FinTech apps allow for international and multi-currency transactions, consumers demand the highest level of security. AI and ML can help achieve this.

Around the clock, AI and ML actively monitor consumer data, including device data, IP addresses, geolocation, and transactional behaviors. They help identify users’ behaviors and prevent suspicious transactions from illegitimate IP addresses.

Use of Tokenization

Tokenization can revolutionize financial markets by enabling new business models and creating new asset classes. This becomes possible due to its ability to enhance asset liquidity and tradability.

It can also facilitate the creation of new product structures with smart contracts governing asset management.

As per a recent report by Research and Markets, “Tokenization Global Market Report 2023,”

  • The global tokenization market grew from USD 2.33 billion in 2022 to USD 2.87 billion in 2023.
  • It recorded a CAGR of 23.4%.
  • The tokenization market is expected to grow to USD 6.89 billion in 2027 at a CAGR of 24.4%.

Tokenization makes substituting sensitive data with freshly created tokens possible. It lowers transaction costs and provides greater transparency, as all transactions are recorded on the Blockchain.

These transactions can be viewed in real-time, reducing the risk of fraud and errors. It also facilitates PCI compliance by protecting data with organizations and when online transactions are made.

Secure APIs and Cloud Servers

A secure infrastructure is an essential security element for a FinTech app. APIs and cloud servers are among the prime targets for cyber attackers. In this space, developers must concentrate on building safe cloud servers and APIs for FinTech apps to prevent security breaches.

For this, developers must include AI in APIs to continuously track how apps run, keep up with updates, and monitor internal or external threat attacks.

Similarly, cloud servers of apps also need similar advanced security programming that fights against cyber criminals targeting FinTech apps.

Blockchain Technology

Using Blockchain in FinTech apps enables financial firms to encrypt each transaction and prevent the risk of threats. It allows firms to store FinTech app data in distributed networks instead of in a single network.

Any modification to the encrypted data must pass through all the nodes as it remains encrypted. This makes it impossible to hack every node, protecting the network from data breaches.

Lastly, Hiring the Right Development Team

Setting up a fully functional FinTech app security solution works better when it is put in the hands of the skilled development team.

Thus, investing in an experienced programmer must be one of the key strategies to protect FinTech apps from security threats.

A professional and experienced developer will help ensure security and precision throughout the lifecycle of the FinTech app.

Conclusion

FinTech is the future of banking and financial investments; hence, it should not be overlooked in terms of security.

The absence of unified app ownership and risky data storing measures are among the significant security risks and challenges that major FinTech apps face.

Cyber threats and clone identity reveal are the added challenges. The integration of these app security solutions and tech will help firms avoid all these challenges to a great extent.

Anushree Bhattacharya
Anushree Bhattacharyahttps://talkfintech.com/
Anushree Bhattacharya is a Senior Editor with TalkCMO, where she covers stories on B2B business strategies and digital marketing. She is a quality-oriented professional writer with eight years of experience. She has been curating content for the B2B marketing industry, and her writing style is inclined toward how businesses want to perceive information about emerging digital transformations in the marketing landscape with latest developments. Anushree blends the best information on trending digital transformations, technology-driven stories, and SEO-optimized content. Anushree is proficient in curating information-driven stories about marketing for TalkCMO publications.

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