Looking for ways to secure your fintech app? You are at the right place. The need for securing such an application is natural, yet complex due to the nature of stored data. This article contains necessary measures to incorporate into your app design if you wish to build a secure fintech app.
Thinking of building a fintech application?
Are you prepared to tackle the security concerns that come along?
Fintech apps allow you to avail of all the services provided by your bank from your phone. So naturally, security becomes a priority for such applications. But here’s the catch, while making them mobile-friendly, multiple aspects formed within fintech apps make them vulnerable to security breaches.
Would you believe it? 64% of the global population uses some sort of fintech app. So, when you plan on dealing with the finances of such a large population, you need to create new benchmarks for safety. In fact, security is the one factor that ultimately decides the success of a fintech app.
Hence, when you consider building a fintech application, three pointers must be incorporated:
- Data security
- Seamless transactions
- Accessible interface
These three factors are the key to ensuring that your app performs its functionality well.
With data security being the priority, let’s find out some of the best ways to establish a safe application framework in fintech apps.
Best Practices to Ensure Safety in Fintech Applications
To ensure that your users trust your application, you must keep up with security regulations that renowned institutions approve. This practice automatically helps in building a user’s trust in your application along with preventing security breaches.
And when it comes to fintech apps, security breaches can result in a huge loss of your user’s financial details or even direct loss of finances. Eventually, the basis of your business, the application will lay in ruins.
- Secure Infrastructure: To construct a sturdy building, you need to ensure a solid foundation. Starting from the code, you need to comply with industry coding standards. This includes building a custom code for the application. Outsourcing your code gives access to your application to a third party, any changes made to the code make direct changes to your application.
Can you imagine how big of a security compromise it is?
So, it’s time to invest in an app development team that will create a custom code for your app idea.
Besides code, the overall operational infrastructure needs to be strong as well. Adding a two-step authentication procedure, firewalls, and anti-virus solutions gives your app a stronger base. Regular backups are also a functional practice to include in your current security plan.
- Constant Testing: Testing keeps your app layout bug-free and its frequent occurrence allows you to update the application as needed. To ensure successful functioning, you can have your application tested at various stages, for different parameters. There are three major aspects that you need to make sure are being tested when it comes to fintech applications, which are:
- Network Security: Network security should be the first on your priority list. The network contains a range of devices, these devices are closest to the general public and hence more prone to becoming a gateway for unauthorized access. When you secure the firewall and routers, you cover the basic testing measures.
- Server Security: While conducting a server security audit, you need to ensure the placement of tools and frameworks. Such a check should be conducted regularly to look for possible security breaches. Multiple security regulations suggest getting a server audit done through an external digital security organization. By hiring another organization for the audit, you hand over your system to professionals and they look into every aspect that you might have missed.
- Internal Testing: Internal testing is usually carried out from a user’s end. In this step, you have to make sure that the application runs smoothly from your customer’s server. So, any vulnerabilities in the system have to be assessed to ensure that it is adequately secure until the next check. This testing gives you an upper hand to prevent all the security concerns that might arise in the future, in turn, boosting your app’s credibility.
- Strong API Strategy: Functionality, security, and content are the three main factors of any app and API manages all of them. Naturally, to improve your fintech app security, you should look into building a strong API strategy. Regular rotation of tokens, using HTTP authentication schemes and OAuth2.0 are the most common practices that are used to secure the App Programming Interface (API) in fintech apps.
- Data Encryption: Data encryption is one of the primary factors when it comes to security in fintech applications. Applying encryption in algorithms is not enough, you need to secure the transmission as well as the databases for finance applications. Only using encryption protocols does not provide sufficient security The three major factors that should be encrypted with advanced algorithms are-
- Personal information of users
- Financial reports
- Transactional information
- Back-up Plan: Let’s take the best-case scenario. Your fintech app is fully secure. There are little to no chances of a security breach. No data is ever lost and as a result, the public trusts you.
But what if the odds aren’t in your favor?
There is a lot at stake in such a situation. To tackle this, a strong backup plan is a must-have. This plan should store all the information from the existing servers and have a stronger, regularly updated encryption policy.
You should also look into having an experienced workforce lead and monitor the development process. This reassures a quality application, built with best app development practices.
Conclusion: As time passes, fintech apps continue to assist the public and financial organizations in more than one way. However, while building such an application, you need to make sure that any data in the application is fully secure. You can take various measures to ensure a secure fintech app. Implementing strong API, backup, and encryption strategies are some of the basic yet important benchmarks that increase the chances of your app’s success.