Top Fintech App Security Standards for Your Application

Fintech is no longer an alienated term, it has gained immense popularity over the span of years, all thanks to its worldwide adoption. Now, though 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 is beneficial to the big question - what are the top fintech app security standards to take into account? 

Fintech is a universal term used for the development of any mobile or software application to enhance the present finance norms and procedures. Right from mobile payment apps to blockchain networks, credit cards, and online banking, everything is included in the fintech or the financial technology realm.

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

Further, I would like to mention some of the most popular types of fintech applications. 

• Digital banking 
• Open banking
• Insuretech
• Loan applications Digital payments
• Personal Finance Management apps
• Cryptocurrency apps 

Why is financial technology so much in vogue? 

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

Now, let’s focus on the why part and learn Why Fintech is needed. 

Benefits of Considering Fintech Applications for Your Business

1. Cost-effective

One of the obvious benefits of considering fintech applications for your business is that it is pretty much cost-effective. You see most of the fintech-based applications are developed using reusable codes and this surely leads to saving ample of time, money, and energy but at the same time, developers must take care of security concerns. Also, since fintech apps will be developed by hiring reliable and skilled app development experts, the chance of failures or risks is pretty much minimised. 

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

2 Quick Transactions

Coping up with today’s fast-pacing times can be pretty much tricky. As a result, you need tools and technologies at bay that can offer quick results and fintech apps are definitely one of those. Now you no longer have to wait for 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 the span of a few seconds, their account gets opened. 

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

3 Better standard of living

Of course, the inception of these kinds of innovations has definitely led to a better standard of living. You see the more financial activities being conducted ensures a better economy and thus results in an enhanced 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 only are meant to enhance financial procedures and make processes more efficient. Well, I won’t say that it's entirely a misconception because up to quite an extent it is true. You see now the scope of middleman or slowed procedures completely eliminated which has surely resulted in happy customers and enhanced experiences. Apart from this, these applications have paved their way from large institutions to smaller ones and even individuals. You see every small or large venture requires automation and the right use of digital technology, this surely not saves an adequate amount of time but also maximises their resources. 

One of the best fintech application trends is Robotic process automation, RPA for short. Here the bots are used to conduct 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 responses.  Also, it has been noted that by using such tools and technologies errors seem to have reduced by 57%. 

Moreover,  blockchain technology, autonomous finance, biometrics, and open banking are some other crucial innovations to take into account. 

5 Streamlined operations

And lastly, we have streamlined operations. Most of the financial institutions without these tools and technologies and prior to the inception of these tools were often mismanaged. Fortunately, the fintech application's strongest, or should I say the highest potential is that it makes the entire workflow streamlined. With more and more access to digital banking platforms, easy accessibility to your finances, easy transactions, and financial operations can be made. Also, these transactions can be viewed in real time so that there is no scope for any kind of errors. 

Enough being said about financial app development, now it's time to focus on what are the core security standards that must be taken into account while conducting such a development project. 

Top Fintech App Security Standards to Consider

1 Security Code and Architecture

Do you think it’s easy to incorporate security in each step of the app development? Of course not! So what one can do is, do all the research and planning pretty much ahead of time so that afterward you have to only focus on the potential gaps where security is much needed. 

Ask your fintech app developer to come up with well-written algorithms. As well as he or she is also responsible for inspecting the code for relevant flaws or any kind of security breaches. On a final note, do not forget to test to ensure the security incorporated works well. To be precise, encryption is extremely important.   

2 Ensure appropriate security measures 

Another interesting step to take into consideration is to make sure that appropriate security measures are being taken especially before the launch of the fintech app. Unfortunately, most of the non-techies thoroughly ignore the concept of system misconfiguration and drop devices which on the contrary can be quite dangerous. 

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

Also, here transparency is the key. So be transparent in front of your end users and their loyalty won’t change for a bit. After all, you must inform them regarding how their data is being secured and well-protected. 

3 Choosing the right candidate for the job

Now this is an extremely important thing to do whether you are conducting a web app development or mobile app development or fintech app development project, choosing the right team of professionals is extremely important. It’s more like the half-battle you have already won by hiring the right candidate. You see these professionals are pretty much well-experienced and highly skilled in ensuring that security is present in 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 several mainstream industries and the fintech industry is not an exception. Now you must be wondering why to include artificial intelligence and machine learning in fintech apps. 

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

5 Focus on the Encryption Policy

Last but certainly not least, one has to keep a hawk eye on the encryption policy. There is no scope for making any kind of mistakes after all, it’s a matter of you as well as your valued customers, there is no scope for the information to be leaked. For such cases, try processing data with different variations, and keep tabs on the gaps which might lead to huge threats.  

Final Words

And we are done for now! Let us know in the comment section below regarding what you think about the aforementioned pointers on fintech app security standards. In case, if you want to add a point, get in touch and we will definitely add it to the following list when found worth considering. I hope you did find the following post worth considering, and if yes do share among your peers and let others know regarding the same.