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The triumphant elements for any mobile banking app
are design, speed, and simplicity. By possessing these traits, a fintech app can captivate any smartphone user, a demographic that is steadily expanding. Major players in the industry recognize that the ubiquity of mobile phones in our lives must be leveraged to attract loyal users for FinTech enterprises.
Fintech companies and their services
Fintech companies, often emerging as startups, are at the forefront of technological innovations in the financial and banking sectors, offering a range of services. These services span online payment-based business financing, savings management, loan provisions, bank account integration, and more. But are these services adequately secure? That’s what we’ll explore in this article.
Fintech Security
As previously mentioned, design, speed, and simplicity are crucial for Fintech success, but another essential aspect is Fintech Security. Statistics show that in 2021, over 92% of cyber threat victims were in the fintech applications industry. This trend has persisted from 2022 until now.
Why is Fintech Security an Issue?
The architectural design of financial apps is often prone to significant mobile banking security vulnerabilities that can lead to breaches in financial security. A mobile-based internet banking app essentially serves as a software directly linked to the bank’s backend service through Application Programming Interfaces (APIs).
- Typically, such APIs are constructed using open-source code, which can be advantageous for app developers. However, these APIs may introduce security vulnerabilities into mobile banking applications.
- Ironically, web app security systems or source code safeguards may not suffice to mitigate or eliminate these vulnerabilities. Hackers targeting online and mobile banking systems can exploit machine-to-machine interactions by creating their own shadow APIs. Contrary to popular belief, these shadow APIs do not necessarily emerge as vulnerable endpoints.
What are the Risks Associated with Fintech Security?
There are three major risks associated with fintech security:
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- Lack of unified app ownershipProtecting mobile banking services in fintech is jeopardized by app ownership issues. Typically, there are two owners: one external and one internal to the bank. Additionally, the bank’s IT department is another stakeholder. Moreover, an external entity is involved in the development and governance of mobile banking apps and their APIs.This multi-layered ownership structure poses significant security challenges, as responsibility is shared among multiple parties, increasing the likelihood of vulnerabilities.
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- Risky data storageEvery mobile app stores user data in some form. Given the sensitive nature of data in the fintech sector, storage solutions must be highly secure to prevent vulnerabilities. Secure storage is the first line of defense against financial data leaks or loss of application code. Vulnerabilities in internal storage can grant hackers direct access to sensitive information, which they can exploit for their gain.
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- Communication breakdownMobile apps must communicate with external data sources such as NFC, Bluetooth, servers, and various authorization mechanisms to function properly. However, this communication poses a potential security risk, as it can inadvertently expose user data.
10 Fintech App Security Solutions
- Security code and architecture
- Use code obfuscation to prevent cloning
- Utilize AI and ML to track user transactions
- Implement secure identification, authentication, and authorization processes
- Employ tokenization
- Secure APIs and cloud servers
- Prioritize safety-oriented testing
- Ensure security measures in daily workflows
- Enforce a robust mobile encryption policy
- Hire a proficient development team
Top Fintech Security Technologies for 2024
- Secure Access Service Edge (SASE)
- Artificial Intelligence
- Digital Currency
- Regulatory Technology (Reg Tech)
How Can McArrows Help You Build a Secure FinTech App?
Fintech, the future of banking and financial investments, cannot afford to overlook security. Data and privacy concerns continue to plague the industry. The key is prevention!
Follow the aforementioned fintech app security measures throughout the app’s lifecycle to excel in the market. However, proactive measures alone aren’t sufficient. Engage an experienced fintech app development company like McArrows. Our team of professionals can build your fintech app with utmost security measures, ensuring efficiency and peace of mind. Contact our experts today!
FAQs
1. What are the top fintech app security solutions?
Ans. Securing code and architecture, code obfuscation, AI and ML integration, secure identification processes, tokenization, and secure APIs and cloud servers.
2. What security risks do fintech apps face?
Ans. Lack of unified app ownership, risky data storage, and communication breakdown are major risks, along with cyber threats and identity theft.
3. How can fintech app security solutions help?
Ans. By integrating security measures and technologies during development, fintech app security solutions mitigate risks, ensuring secure transactions and user data.
CEO, McArrows
Leverages over seven years in tech to propel the company forward. An alumnus of Purdue and Amity, his expertise spans IT, healthcare, aviation, and more. Skilled in leading iOS and backend development teams, he drives McArrows’ technological advancements across diverse industries.
