High speed, design, and simplicity are the winning attributes of advanced FinTech apps. Yet, companies must pay attention to the security risks and their solutions for emerging FinTech apps if they want users to leverage them safely.
As the world gravitates towards using apps more than ever ( In 2020, 218 billion mobile apps were downloaded, up from 204 billion app downloads in 2019). Not surprisingly, the finance sector is heavily invested in developing FinTech apps for various banking and finance services.
Because of Fintech’s success, businesses should prioritize financial application security while focusing on high speed, design, and a secure interface. The flip side is that because the apps bank on users’ data, they become a popular target for hackers and thieves.
So, businesses are aggressively developing cutting-edge security solutions for FinTech app products to offer seamless application services.
Security Code and Architecture
Every step of the app’s usage must have security codes to create a dedicated FinTech app. Incorporating the codes for app developers to constantly check for bugs and potential gaps that might have been left unintentionally is worthwhile. The 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. In the end, specific testing guarantees that security is reliable. Using cloud-based architecture, ensure encryption is correctly performed at each stage of app development.
Practice Code Baffling to Prevent Cloning
Fintech apps are typically cloned or attacked through malware or phishing. Usually, cybercriminals construct clone apps to get user information, compromise data, and attempt other frauds. So, FinTech companies must conduct code baffling to avoid these frauds and include metadata, encryption, and firewalls to lessen the probability of vulnerabilities. This way, FinTech app security solutions can consist of codes to distract attackers from accurate data information. Also, using these codes stops software from being frequently cloned and may save firms from falling behind.
Regulatory Technology
The challenge of regulatory compliance is vast for many FinTech firms. RegTech, or regulatory technology, is a new movement that aims to assist financial services companies in meeting compliance regulations by utilizing cutting-edge technology. Modern financial app innovations increasingly incorporate technology, which calls for strict security controls to protect apps. Regulatory technology service providers help businesses by providing software that excels in risk management, identity management, and data protection and manages all app transactions.
Since FinTech apps are used to swap, exchange, and pay millions of dollars, it is crucial to include cutting-edge security measures with the help of regulatory technology to keep apps secure. Even for banking purposes, apps need advanced security solutions withstanding different threat attacks and breaches.
Leveraging AI and ML to Track User Transactions
Fintech apps today should continuously update their technology base. Since the apps allow for international and multi-currency transactions, consumers demand the highest level of security, and this is primarily made possible by AI and ML. Around the clock, these technologies actively monitor consumer data, including device data, IP addresses, geolocation, and transactional behaviors. They continue identifying users’ behaviors and stopping suspicious transactions from unknown and risky IP addresses.
Usage of Tokenization
Tokenization is not a new concept in fintech app security solutions. Tokenization makes substituting sensitive data in programs with freshly created tokens possible. Only financial chiefs have the leverage to access unique database or tokens that contains all the links between original data and generated tokens. They can intervene to check if tokens are linked to the original data. If this is the case, appropriate levels of security are present in FinTech apps. Tokenization further 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 application. Application programming interfaces (APIs) and cloud servers are among the targets of choice for cyber attackers. Since they are the weak points in the security infrastructure, they are commonly targeted here. In this space, developers must concentrate on building safe cloud servers and APIs for FinTech apps to ensure no security breaches. For this, the automation of apps needs controlling power to keep attackers away. Developers need to include AI in application programming interfaces 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 hitting FinTech apps.
Also Read: Cross-Border Payment Challenges and How FinTech Can Overcome Them
Blockchain Technology
Using Blockchain in FinTech apps enables financial institutions to encrypt each transaction and guarantee that no threats can get through. Blockchain allows FinTech app data to store in distributed networks instead of in a single network. Any modification to the encrypted data must pass through all the nodes because it remains encrypted. As it would be virtually impossible to hack every node, Blockchain protects the network from data breaches and other shady activities by hackers.
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. As a result, hiring experienced programmers is one of the best ways to protect FinTech apps from security threats. It would also benefit businesses to provide FinTech security solutions for application development so that firms can give flawless app services without worrying about security concerns.
