How to Avoid Vulnerabilities in Fintech – Best Practices
Here are some key fintech solutions to consider when building secure applications.
data encryption
Encryption scrambles information and renders it unintelligible until certain keys are used. You can encrypt your data using one of the following algorithms:
Secure authentication technologies
Implement the following measures to protect your fintech application from targeted internal and external security threats:
- OTP system
- password change
- monitoring
- timing of login sessions
- Adaptive authentication
Role-based access control
Role-based access control changes your level of access based on your affiliation with a specific organization. Even if you hold positions within the company as an IT specialist, customer, manager, etc., you will not be given access to areas outside your area of responsibility. This feature significantly reduces cyber threats both internally and externally.
Choosing the best software development company with the appropriate expertise is crucial when building your fintech application to meet all your needs.
DevSecOps
In conjunction with current cybersecurity developments, the software development life cycle strengthens the security of a fintech application. DevSecOps greatly simplifies the development of a secure financial application. The key component of this idea is cybersecurity coupled with other crucial elements like the testing process.
also read: An overview of cybersecurity issues facing the fintech industry
Fintech startups and firms offer more flexible goods and services compared to banks. Additionally, they offer faster time to market, which is critical from a business perspective. Due to their fast release cycles, fintech companies often simplify their products or exclude critical functionalities. For this reason, fintech companies often only partially or fully protect their solutions, especially if they cannot immediately see the benefit to their business. Fintech companies may also scale back their dysfunctional data security standards due to a lack of cybersecurity awareness and misconception that fully secure products are not flexible enough from a business perspective.
This often results in functional but insufficiently secured goods, which are likely to cause considerable security expenditure when these products are scaled up and must be secured or corrected accordingly. Therefore, doing business with fintech startups can be riskier than relying on big banks.
Overall, a fintech company is more likely to suffer a security breach than a tightly regulated bank, but the impact can be similar as both process the same type of data.
also read: Why is cloud the booster shot for fintech?
