With the advancement of technologies, financial services & products are being transformed with ease of use and convenient features of mobile and web-based apps. However, as we know, fintech applications deal with sensitive information and crucial data and need high-security standards to protect against cyber attacks.
The best practices of security and finance operations in FinTech have 3 main pillars:
- Data privacy
- Customer trust
- Regulatory compliance
As huge opportunities and challenges in fintech are two sides of the same coin, cyber threats in financial markets like phishing, malware, and ransomware are increasing. And such threats can lead to compromised data and financial losses, which can significantly affect the reputation of your company. However, with custom FinTech app development services, finance and banking institutions can implement robust security measures by balancing the convenience of operations with security.
Best Security Practices to Follow for Fintech App Development
Comply with Industry Standards and Regulations
Since banking and finance are highly regulated industries, fintech app developers need to be updated with the regulatory standards. Such compliances are essential for developing a secure and robust application for better privacy and security. Some of these compliance requirements are:
- Anti-Money Laundering (AML)
- Know Your Customer (KYC)
General Data Protection Regulation (GDPR)
Read the blog Everything You Need to Know About Fintech Security, Risk, and Compliance to develop a finance app with a robust tech infrastructure.
Secure Data Storage
Secure data storage is a crucial part of the robust fintech app development. You need to decide what data to store, where to store it, who will access to the information on your app, and more. With secure cloud storage and computing capabilities, you can build a secure payment gateway that does not ask for the customers’ card numbers.
Secure and Clean Coding Techniques
If your code has vulnerabilities, your application will always be at risk. Therefore, focus on secure and clean coding techniques with proper logging, input validation, password management, error handling, and secure communication.
Encryption
Data encryption is a widely used technique to mask the sensitive information into a code that requires special keys to decipher it into a readable format. In healthcare, fintech, and even in messaging applications, this technique is useful in sending information securely.
Cloud Migration
Companies in the FinTech sector have chosen to migrate their operations to cloud services to enhance scalability, performance, and cost efficiency. Nevertheless, managing and ensuring data protection can be challenging due to the complexity and transactional demands across various cloud environments.
Digital Identities
The primary goal of identification, authentication, and authorization systems should be to prioritize protecting applications from hacking attempts and suspicious activities. However, both password-based authentication and 2FA can be susceptible to cyberattacks.
Conclusion
Fintech projects are often considered challenging due to their technical complexity, potential security threats, and regulatory compliance requirements. Therefore, building a powerful fintech product necessitates the involvement of experienced experts who understand both technology and business, helping to mitigate all possible risks.
Hiring a custom intech app development company is crucial for creating effective financial products. Experienced developers can assist with various aspects of product development or the improvement of an existing one, covering everything from business strategy to technical implementation and the incorporation of personalization. Throughout development, security should be prioritized through the use of internal checklists and best coding practices.
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