Top Fintech App security standards for your application

Fintech is no longer an alienated term, it has gained immense popularity over the years, all thanks to its worldwide adoption. Now, although everyone seems to be gushing over the term, unfortunately not many of you have understood the importance of fintech app development.

Well, so let’s begin the post uncovering the basics of fintech app development, from what it is to how it’s beneficial to the big question – what are the best fintech app security standards to consider?

Fintech is a universal term used for the development of any mobile or software application to improve current financial norms and procedures. From mobile payment apps to blockchain networks, credit cards and online banking, everything is included in the fintech or financial technology space.

The term fintech was derived by combining the word financial technology. mobile banking, peer-to-peer payment services (eg Venmo, CashApp), automated portfolio managers (eg Wealthfront, Betterment), or trading platforms like Robinhood, cryptocurrencies like Bitcoin, Dogecoin and Ether are some of the best examples to note himself here.

Furthermore, I will mention some of the most popular types of fintech applications.

• Digital banking
• Open bank
• Insuretech
• Loan applications Digital payments
• Apps for personal financial management
• Cryptocurrency Apps

Why is financial technology so much in vogue?

Well, by incorporating innovative technologies such as artificial intelligence, cloud computing, blockchain, cryptocurrency, internet of things and big data, developing successful fintech applications has become quite a feasible venture. No wonder, the combined billion dollar revenue is predicted to double by 2030.

Now let’s focus on the why part and learn why Fintech is necessary.

Benefits of considering Fintech applications for your business

1. Cost effective

One of the obvious advantages of considering fintech applications for your business is that it is quite cost-effective. You see that most fintech-based applications are developed using reusable codes, and this certainly leads to saving a lot of time, money and energy, but at the same time, developers have to take care of security issues. Since fintech apps will be developed by hiring reliable and skilled app development experts, chances of mistakes or risks are pretty much minimized.

So yes, if you want to offer convenient transaction options on a predetermined budget and stick to it, then hiring a reputable fintech app development team is worth considering.

2 quick transactions

Coping with today’s fast times can be quite difficult. As a result, you need tools and technologies in check that can offer quick results, and fintech apps are definitely one of them. Now you no longer have to wait until the weekend or even longer to visit the bank to open a personal bank account. With a wide range of fintech solutions available, end users can submit their applications online and within seconds their account is opened.

In addition to that, even if you want to transfer large sums or pay quickly, these fintech applications can be of great help.

3 Better living standards

Of course, the beginning of this type of innovation has definitely led to a better standard of living. You see that more economic activities that are carried out ensure a better economy and thus result in an increased standard of living. With the existence of these financial technology based apps, there is no doubt that we can create a prosperous society.

4 Increased efficiency

This is quite a misconception that Fintech applications are only meant to improve financial procedures and make processes more efficient. Well, I wouldn’t say it’s completely a misconception because it’s true to some extent. You now see the extent of middlemen or slow procedures completely eliminated, which has surely resulted in satisfied customers and improved experiences. Apart from this, these applications have made their way from large institutions to smaller ones and even individuals. You see that every small or big business requires automation and proper use of digital technology, this surely not only saves enough time but also maximizes their resources.

One of the top fintech application trends is Robotic Process Automation, RPA for short. Here, the robots are used to perform all the repetitive and monotonous tasks such as retrieving reports and managing payments. Sometimes these bots even perform the role of customer service representatives so that the end users can receive immediate answers. It has also been noticed that by using such tools and technologies, errors seem to have been reduced by 57%.

Also, blockchain technology, autonomous finance, biometrics and open banking are some other important innovations to consider.

5 Streamlined operation

And finally, we have streamlined operations. Most of the financial institutions without these tools and technologies and before these tools were launched, were often mismanaged. Fortunately, the fintech application’s strongest point, or should I say highest potential, is that it streamlines the entire workflow. With more and more access to digital banking platforms, you can have easy access to your finances, simple transactions and financial operations. These transactions can also be viewed in real-time, so there is no room for any kind of error.

Enough said about financial app development, now it’s time to focus on what are the core security standards that need to be considered when undertaking such a development project.

Top Fintech App Security Standards to Consider

1 Security code and architecture

Think it’s easy to incorporate security into every step of app development? Of course not! So what one can do is to do all the research and planning quite a bit beforehand so that afterwards you only have to focus on the potential holes where security is badly needed.

Ask your fintech app developer to come up with well-written algorithms. In addition, he or she is also responsible for inspecting the code for relevant errors or any kind of security breach. Finally, don’t forget to test to make sure the integrated security is working well. To be precise, encryption is extremely important.

2 Ensure appropriate safety measures

Another interesting step to consider is to ensure that appropriate security measures are taken, especially before the launch of the fintech app. Unfortunately, most non-techies ignore the concept of system misconfiguration and drop devices that, on the contrary, can be quite dangerous.

So what we can do is try to use your company’s hardware, especially if you want access to back-office or development-related interfaces. By doing so, all potential insider attacks can be avoided. In addition, do not just sit and do nothing if there is any potential threat detected. Come up with quick recovery solutions.

Here, too, transparency is key. So be transparent in front of the end users and their loyalty will not change for a while. After all, you need to inform them how their data will be secured and well protected.

3 Choosing the right candidate for the job

Now this is an extremely important thing to do whether you are doing web app development or mobile app development or fintech app development projects, choosing the right team of professionals is extremely important. It’s more like half the battle you’ve already won by hiring the right candidate. You see that these professionals are quite experienced and highly skilled in ensuring that security is present at every stage of fintech app development.

4 Use disruptive technologies such as AI and ML

Another interesting fintech security standard that must be met is ensuring the use of disruptive technologies such as artificial intelligence and machine learning. Over the years, AI and ML seem to have entered more mainstream industries and the fintech industry is no exception. Now you must be wondering why you should include artificial intelligence and machine learning in fintech apps.

Well, first of all, these technological advances can be used 24/7. And apart from that, they can be combined with user IDs, IP addresses, geolocation and other transactional activities. This certainly minimizes the scope of threats and attacks.

5 Focus on the encryption policy

Last, but certainly not least, one must keep an eye on the encryption policy. There is no room for making any kind of mistake after all, it is a matter of you as well as your valued customers, there is no possibility that the information can leak. For such cases, try to process data with different variations and keep an eye on the gaps that can lead to major threats.

Last word

And we are done for now! Let us know in the comments section below what you think about the aforementioned tips on security standards for fintech apps. In case, if you want to add a point, get in touch and we will definitely add it to the following list when it is worth considering. I hope you found the following post worth considering and if so please share it among your peers and let others know about the same.