Fintech application development has disrupted the conventional banking and finance systems, investment firms, insurance sector, and other financial institutions. Though people have always put trust in the traditional practices of the BFSI sector when it comes to protecting their money and providing personal information, the time is ripe for safeguarding the data by securing the fintech app.
Let’s dig deep into making the fintech application development process secure. It starts with hiring the right developers for it. Specialized and experienced app developers who give priority to security fundamentals are the right choice for developing the fintech app. These developers ensure a stable structure for the fintech app and integrate safety standards.
Here it is fair to mention that the security of finance and banking apps is the collective responsibility of security officers, developers, and the financial institution’s management team. However, the focus should be on hiring specialized app developers for building robust fintech apps. The next step to ensure the safety of the fintech apps is to build a secure infrastructure.
Build Secure Infrastructure
Secure infrastructure is essential for building a robust and reliable fintech app that can last for a long time. The fintech app should keep the subtle balance between data privacy and security for remaining a compliant and relevant application. There should be a detailed policy including privacy and security provisions in place.
Building an infrastructure for the fintech app from scratch can ensure that stakeholders get what they need. Also, the robust infrastructure assists you to develop a secure FinTech app by combining extensive testing mechanisms, QA, and other necessary elements. The most basic service architecture of a highly secure FinTech app includes-
- Access Management
- In-house Team for Communication
- Compliance Management
- Encrypted Data Transmission
- Server and Database Hosting
- Secure Payment Gateway Integration
However, due to the lack of essential tech talent, many financial institutions find it difficult to hire a capable team of app developers. It is better to partner with a reputed app development company that offers end-to-end development services with top-notch infrastructure.
Define Your Niche
These days, the end user’s expectations and requirements keep on changing rapidly. The financial sector also witnesses a rapid change in trends and requirements. We have multiple fintech applications available that are not directly related to money, wealth, and transactions. Instead, they focus on social networking restricted to the BFSI sector.
Other fintech apps can give live updates of the market and assist users to get advice from the online community. Some fintech apps focus merely on making a balance between incomes and expenses. In such a scenario, it is essential to find your niche before developing a fintech app. In all types of apps, privacy, and data protection matter the most.
Fintech apps based on social networking can also connect multiple people across the world and therefore, these apps need to be highly secure. Chances of cyber fraud are high for such social networking-based fintech apps, and therefore, you need to follow all specific rules for storing and sharing the user’s financial and other information in a secure way.
You need to define your niche in line with your business model and target audience before building an app.
Safeguard Cloud Storage
All fintech apps need secure APIs and cloud servers. It is imperative to safeguard the app and Cloud servers against any unauthorized users and third-party access. Backend API security can ensure that there is no data leakage and significant space is assigned to all the users for storing their confidential data in a safe manner.
What’s more, the app development company should apply TLS or Transport Layer Security to the traffic and you need to keep on running vulnerability tests to keep your app ready against any network threats for a long time. Integration of VPNs can be an added advantage for ensuring the safety of your fintech app.
Meet Regulatory Demands
The BFSI sector is one of the most regulated sectors. While developing a fintech app, you need to manage compliance regulations and data security together. Also, both these aspects should be revisited on a regular basis during and after the app development process.
Here, three major aspects you should keep in mind for aligning regulatory demands while protecting the sensitive data-
- Where the highly sensitive data is stored
- How to secure the same information
- Who can get access to the data
These three aspects can be addressed effectively using encryptions and firewalls and even help you keep a check on security protocols.
Integrate Two-factor Authentication
Two-factor authentication can always help your fintech app to go into the wrong hands. It is the most reliable and versatile way to enhance the security of the fintech app. Primary authentication methods that rely on usernames and passwords are not as effective as this method. What’s more, as an owner of the fintech app, you can also consider building a security code for the application since its launch.
Apart from the necessary username and passwords, it is beneficial to add biometric identifiers. It can give another layer to the traditional username and password-based protection. Finally, sensitive data on the fintech app can be processed across various servers and user devices, and therefore, security codes can play a vital role in developing the app. Security codes can easily fill the significant and minor gaps in the fintech app development.
In a nutshell, ensuring the security of your fintech app and protecting the confidential information of your app’s users should be an ongoing process. You need to keep users informed regularly for improving their financial security. You should ask them for feedback and monitor their app usage habits and time. Users should also know the authentication steps for their accounts on your app and you need to ensure that they can complete the authentication process rapidly without compromising the security.
Wrapping Up
These days, fintech technology is booming and financial institutions want to come up with unique and innovative apps according to the latest trends. There, security remains the top concern for app developers and owners alike. Hope these tips and techniques will help you make your fintech app highly secure for a long time.