The FinTech apps deal with financial services and automate them. Banking and finance companies use FinTech to develop, automate, or enhance financial services with the help of technological solutions. FinTech is a rapidly growing industry and in recent times, it grabbed the attention of both businesses and consumers in several ways.
FinTech is a combination of two words: Fin represents financial services and tech means technology. This new technology is growing exponentially, the most common example of this field is Blockchain.
According to the report by the State of Application Security, approximately 98 out of 100 FinTech startups face malware attacks and hackers. This report highlights a system issue, the entire app development company has to be devoted to securing clients’ sensitive data.
Businesses across the world use FinTech applications to offer more efficient and enhanced security measures to their clients. Such FinTech apps became a trendsetter in the banking and finance industry because those apps are highly secure, versatile, and scalable.
FinTech mobile apps sometimes offer very insecure services and expose their user’s data over the internet. Under these conditions, developing a secure FinTech app integrated with highly secure data protection functions is an essential task.
If you are looking to build a highly secure FinTech application, here are tips on how to create a FinTech app:
If you are planning to build FinTech apps, the most important thing is to integrate security features in every step of the app. However, unfortunately, a lot of mistakes can occur in the first step of this process.
In the first stage, developing a secure architecture is of utmost importance. For example, if the app functions on the open-source cloud, always make sure that you have to select a reputable cloud server that is genuine about security, rules & regulations and fulfills all modern cloud security standards.
In most cases, keeping credit and debit card numbers for paying bills is not required. Some systems may just save the billing method's identification token. The token is then sent to the server, which generates a charge for the customer. It is not required for the server to be aware of the details of the bill that is being paid. As a consequence, the database will not be hacked using this approach. Tokenization is a unique idea introduced by Apple Pay.
As a result, the one-time code for payment methods become beneficial for all FinTech organizations around the globe. Let’s have a look at PCI tokenization.
The primary verification method is having a username and a password. The two-factor verification method is an excellent way of improving the security of the app. The most common factor of two-factor verification is using a one-time code through email or short message service. The second conventional way is a push notification from which a user can verify themselves with a single click.
The FinTech app has various capabilities that not all users may be authorized to use. Since FinTech apps are so complex, you'll need a system for managing permissions and assigning responsibilities. RBAC (Role-Based Access Control) is crucial in this situation. It is a relatively simple system that operates according to the administrator's instructions. ACL (Access Control List) is an alternate approach that controls a list of all users' operations.
It's critical to keep track of every transaction and limit the ones that appear suspect. You may also create your own fraud recording systems or utilize third-party solutions in conjunction with them. Transactions may certainly be classified as low, medium, or high risk. In a high-risk transaction, the server will refuse the query and send an alarm message to personnel who will investigate the log activity.
Any company that works with financial transactions needs a strong verification plan in their work process. A username and password are very basic credentials that can be hacked easily. The FinTech Apps can force users to make difficult passwords and make restrictions for users to change the password after every 3-5 months. FinTech app also enforces users to create passwords with an extended set which have over 12 characters in length.
The FinTech apps may add parallel or sequential improvements according to the business process. Plus, with the help of similar policies, it decreases the risks of data breaches.
Writing a secure code is one of the essential elements of FinTech applications. Crucial personal information will be secured on the server and stored on the user’s device. This is why it is critical to building correct algorithms which will enable you to quickly detect any error in the code. You must monitor the source code frequently and analyze it for any possible bugs. Also, ensure that the code is easily transferable between various devices and operating systems. From this approach, the FinTech app developers can quickly control and update code in case of any data breach.
Let’s have a look at the following practices of securing FinTech app code:
Due to the lack of input validation, many applications and websites get hacked easily. This is why input validation is one of the essential security steps for app developers. Input validation prevents your app from being affected by malicious code.
If data is sent to external networks, make sure it is just the absolute minimum. Ensure that no sensitive information is transferred to a public server by monitoring the data on a regular basis. Furthermore, denying access to all of your app's capabilities is the best approach to keep it safe.
Before developing the FinTech app, make sure you integrate the best viable architectural security system. By applying perimeter resistance, you can accomplish this because this layer is the same as firewalls and proxy servers. Also, ensure that you have sufficiently configured the routers and other devices as this will prevent internal attacks.
Below are the best ways you can achieve security of infrastructure:
• Do not download any applications or services on the server.
• Monitor operating systems and app servers frequently.
• Manage third-party elements.
• Use VPN layers and HTTPS
• Protect web server
• Have Redundant Failover architecture
To interact with back-end data mobile applications use APIs. So, tokens and API keys play a vital role in the efficiency and security of the mobile app. The employment of an automatic API token rotation has become one of the best methods for the protection of API.
In addition, businesses should frequently rotate API tokens. However, APIs are also accountable for the functionality, data, and content. Build a proper API security system before you build FinTech apps. Whereas, the security stack of API contains three highly secure measures: verification, identification, and authorization.
Companies should educate their customers on some important security instructions. However, they also have some responsibility for the data protection, they should acknowledge the security issues. Here are a few tips mentioned below on how an individual can protect their credentials and sensitive data:
• Use official app stores
• Do not save the username and password in the FinTech app
• Do not root your device because it will increase the chances of data breaching
• Use anti-virus software and use VPN for additional security calculations
• Do not use the app on public Wi-Fi or insecure networks
Provide the entire knowledge of the FinTech app to your clients so they know how the app collects, uses, and stores their sensitive data. Offer them easy accessibility from the organization’s websites with detailed instructions.
Encryption protects data and delivers it to various units. One of the most complicated stages of protecting data. Businesses can employ different algorithms of data encryption. The safest option is the Advanced Encryption Standard (AES).
The cost to build a FinTech app depends on the customer's requirement. Internet banking development on a huge scale is quite an expensive project and it needs the long-term work of expert developers. If you are building the app on small scale then the cost to build a FinTech app will be affordable.
The accurate budget of a FinTech app can be measured only based on the scope of the technical niche. The development of such projects can be expensive and comparatively take more time. So, when out-sourcing the project, the developers usually work on hourly wages.
The FinTech industry requires a successful and secure mobile solution that can help engage users well. A good FinTech app will allow users to perform their financial transactions and automate them without worrying about the security of their sensitive data. If you want to ensure proper security, follow the steps mentioned above in order to develop a highly secure FinTech app that has every possible feature which is useful for the users.
17, Feb 2022
Pawan is a content marketing freak who excels in web, business, and gaming content. Apart from his professional life, he has a keen interest in poetry. Follow him on Instagram!