Security and Compliance as a Service for Fintech
Security as a service emerged from the recent trend of service-oriented architecture. With service-oriented architecture, companies can develop innovative products and services using a cloud provider’s infrastructure for back-end processing. To know more about Cloud Based Security in Fintech Space, Srajan Agarwal from Elets News Network (ENN) spoke to Ruchin Kumar, Vice President, South Asia, Futurex.
What are general security and compliance challenges for Fintech?
Fintechs often need HSMs to secure keys and process transactions. As such, key management solutions are needed to fulfill PKI use cases, while encryption solutions are needed to protect payment data. Deploying HSMs on site can pose a logistical and financial challenge for small and medium-sized businesses. As such, many Fintechs are beginning to look for cloud solutions to meet their needs in a holistic yet cost-effective manner.
Current and evolving scenario in data security
South Asia is fast becoming the Fintech capital of the world, with thousands of new organizations offering services on both a local and global scale. This further drives the demand for end-to-end encryption solutions that meet India’s national compliance requirements. While complying with international PCI standards, India has developed robust compliance requirements that require data to be processed and stored within national borders. This in turn has created demand for locally based HSM and cloud solutions.
How can the best possible return on investment be achieved? The total cost of ownership is optimized.
An IT security solution should meet an organization’s current security goals, but more importantly, it should scale to meet future business needs. If an organization is to grow, the data security platform must scale to meet new use cases and easily overcome future challenges. This minimizes the costs of upgrades, the effort to integrate new solutions and the challenge of managing it all.
Migrating payment HSMs to the cloud is a reliable and expedient way to reduce an organization’s TCO. On the one hand, migrating an entire infrastructure to the cloud consolidates it into a centralized platform. This allows you to manage operations from a single pane of glass, avoiding integration pain points that come with multi-vendor or legacy infrastructure. In addition to streamlined management, cloud HSM solutions allow an organization to use the same use cases as physical HSMs, but without the costs of maintaining on-premise infrastructure.
How challenging is it to implement and run security infrastructure (such as HSMs and keys) in compliance with PCI and local regulations?
For organizations in the payments sector, compliance is essential. Fortunately, the right HSM provider can make that an afterthought. HSM vendors such as Futurex design their encryption hardware – including its cloud-based counterpart – with inherent compliance with international standards such as PCI.
In short, deploying an HSM or key management tool with the physical and logical security controls of Futurex ensures compliance. On the other hand, the data retention requirements of institutions such as NPCI require organizations to store certain types of data only within their nation of origin. However, forward-thinking providers such as Futurex have established data centers in all major geographies to help organizations meet data residency requirements with ease.
How long does it take to migrate to cloud-based security and where is the cloud DC located?
The cloud migration process is highly streamlined and can be performed at whatever pace an organization is willing to move. Organizations looking to develop their product or service while migrating to the cloud can set a pace that best suits their project timelines. Futurex offers subject matter experts available on-site and off-site to speed up the process. Finally, with data centers in Mumbai and Hyderabad, as well as over a dozen strategic locations worldwide, organizations are never far from their sensitive data.
What is at stake for Fintech in the event of a data breach or fraud?
While technological security has certainly evolved in recent years, so has the sophistication and frequency of data breaches. Whether you represent a national bank or a Fintech startup, the cost of a data breach can range from a significant setback to a total disaster. This is because organizations do not only suffer financial consequences from fraud or data breaches. Securing data is about maintaining trust. When security is compromised, so is trust in an organization.
What problems does security as a service solve?
Security as a service emerged from the recent trend of service-oriented architecture. With service-oriented architecture, companies can develop innovative products and services using a cloud provider’s infrastructure for back-end processing. Security as a Service solves the problem of deploying data security infrastructure for organizations that are not financially or operationally equipped to do so. It serves to promote innovation and accelerate deployment in a cost-effective manner.
Important points to be considered by Fintech when choosing services.
The most important consideration for a Fintech looking to deploy cryptographic infrastructure is finding an excellent provider. But what makes a supplier great? We at Futurex would like to respectfully offer ourselves as an example.
Over 40 years, we have earned the trust of 15,000 customers worldwide with data security solutions that comply with a wide range of security standards, are easy to integrate with existing systems and public cloud providers, and have the industry’s most versatile suite of encryption solutions. Equally important, Futurex places special emphasis on customer service.
Our staff of certified solution architects are available 24/7/365 to help our customers continue to succeed in their endeavors to secure highly sensitive data.
Futurex local presence and experience working with Fintech
Futurex specializes in creating solutions for Fintech clients. With a strong local data center presence in South Asia, and around the world at large, and with hardware that meets the most stringent requirements, it is recommended that organizations trust Futurex’s industry-leading cryptographic services.
How is Futurex helping Fintech in South Asia and beyond?
By delivering scalable, highly available cloud solutions anchored in local data centers, Futurex aims to provide Fintechs with the tools they need to drive innovation in the South Asian market and beyond.
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