FinTech is one of the rapidly growing sectors across the globe. As reported by Research and Markets, the global FinTech market is projected to grow at a CAGR of 26.87% to reach USD 31.5 billion by 2026. However, even in the growing market, data security remains one of the top concerns for industry professionals. As reported by Forbes in October this year, the number of data breaches in 2021 has already surpassed the total for 2020, putting 2021 on track for a record year.
Given the amount of sensitive data FinTech businesses have to handle, security is the most essential aspect of financial software development. If the data is compromised, companies can be crippled in terms of both data and financial loss. The process of building secure FinTech software starts with choosing the right development partner. It is a must that you hire experienced and specialized mobile app developers who give priority to financial security.
A development team for a FinTech app usually consists of specialists, including frontend & backend developers, a project manager, business analyst, quality assurance (QA) specialist, and designer. While hiring the specialists, you must examine the company’s website, portfolio, and any other proof of expertise in financial security services. Once you have hired the app development company, the next step involves taking into account all the necessary measures that will result in a highly robust and secure FinTech app for your business.
Ensure the app has a secure architecture and code
Ensuring a secure architecture and code for your application means integrating security into every step of using the app. At the initial stages of mobile app development, you need to consider factors such as what data to store, who will have access to what data, and more.
Ensure building secure identification, authentication, and authorization processes
Identification relates to entering a username on the app by the user. The authentication process should confirm the identity of the user. Once the user is identified and authenticated by the system, the authorization process should determine what the user is actually authorized to do. Strong passwords are still a popular authentication method in financial services apps.
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However, you can also consider using multi-factor authentication (MFA) for your application. The system adds additional verification steps for users to authenticate their identities in this process. You can also consider adding biometric identifiers, verifying the user’s identity via a thumbprint or facial recognition.
Keep logs of user activities and data
In order to stop hazardous activities on the app, it is vital that your system logs all user activities, transactions, and data such as user ID, IP address, geolocation, and more.
All the transactions being made on the application can be labeled as low, medium, or high-risk. You can also add a payment blocking feature in your app, which will detect anything falling out of the scope of a user’s normal activity, for instance, failed login or withdrawal of an unusual amount.
Data encryption methods include using mathematical algorithms that convert data into code that makes sense only to the intended user. Unauthorized users cannot decipher the data without using the correct decryption key. Therefore, the chances for hackers to access any sensitive information are almost negligible.
The type of data that you can consider encrypting on your app include:
- Personal details such as name, contact number, and address
- Transaction-related data such as account number, credit card number, and payment history
Ensure giving enough time to testing
FinTech app security comes as a result of multiple checks and validation that can happen at the testing stage. The QA testers of your financial software development company should understand the security requirements of your app clearly.
With an aim to detect vulnerabilities in the app, the testers should work through every possible scenario during functional testing. An effective way to test the vulnerability of the app is by performing penetration testing – running own faux attacks and checking if they were successful.
FinTech, no doubt, is a sector that is booming. However, the industry still faces a lot of challenges with respect to data security. This is why companies planning to build a FinTech app must ensure that they hire the best app development services in the industry.
The FinTech app development company should understand all the business requirements of their clients and offer the best financial security services. Apart from following the necessary measures mentioned above, the app development company must also be adept at using all the cutting-edge technologies and software to ensure data security in FinTech apps.
Some of the cutting-edge technologies that will continue to change the landscape of the FinTech sector in the coming years include:
- Artificial Intelligence: The AI and ML systems are being used for predicting and preventing financial fraud.
- Blockchain: The technology is being used to offer highly advanced security features such as storing critical data as cryptographic hashes in a link-node system.
- Cloud: The multi-cloud solutions are being used by businesses to ensure enhanced security and greater transparency in their data usage.
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Photo credit: The feature image has been done by Pedro Talens Masip.This guest article has been submitted by Jason White. While we appreciate guest contributions, it's important to note that the views expressed by the author are not necessarily reflective of those held by TechAcute.