Why is cyber security essential for the Fintech sector?
How to avoid security flaws in Fintech – best practice
Here are some important Fintech solutions you should keep in mind when creating secure applications.
Data encryption
When you use encryption, information is encoded and made unintelligible until specific keys are used. You can encrypt your data using one of the following algorithms:
Secure authentication technology
Implement the following measures to protect your fintech application from targeted internal and external security threats:
- OTP system
- Change of password
- Surveillance
- Time of login sessions
- Adaptive authentication
Role-based access control
In accordance with your association with a particular organization, role-based access control changes your access level. Even if you hold positions in the company such as IT specialist, customer, manager, etc., you will not be given access to areas outside your scope of work. This feature significantly reduces cyber threats both internally and externally.
It is crucial to choose the best software development company with appropriate expertise when creating your fintech application to match all your needs.
DevSecOps
In connection with the current development of Cybersecurity, the Software Development Life Cycle strengthens the security of a fintech application. DevSecOps simplifies the development of a secure financial application. The key component of this idea is cyber security, combined with other important elements such as 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. In addition, they provide a faster time to market, which is crucial from a business point of view. Due to their rapid release cycles, fintech companies often simplify their products or exclude critical features. Because of this, fintech companies often only partially or fully protect their solutions, especially when they cannot immediately see the benefits to their business. Fintech firms may also reduce their non-functional data security standards due to a lack of cybersecurity awareness and the misconception that completely secure products are not flexible enough from a business point of view.
This often results in the creation of items that are functional but inadequately secured, which are likely to incur significant security expenses when these products are scaled and need to be properly secured or remedied. As a result, doing business with fintech startups can be riskier than relying on big banks.
Overall, a fintech company may be more likely to experience a security breach than a heavily regulated bank, but the consequences may be similar because both process the same type of data.
also read: Why Cloud is The Booster Shot for Fintech?
