Fintechs are a great alternative to traditional banking. Partly because they offer opportunities to equal financial possibilities to all people, regardless of any background, but also because they move at a high pace due to less complicated IT structures and governance, which makes them agile and solution-oriented. But with more and more services going digital, there is even more data available online. This makes information easier to analyze and better put to use, but it also makes this data very susceptible to cybercrime. Fewer human and capital resources make it harder for fintechs to cover security challenges, which increases the risk of their data being accessed and breached.
These risk factors can lead to serious things, so let’s see the main challenges that fintechs pose:
As mentioned before, data is now online and omnipresent. And in some cases, it might contain personally identifiable information about many different people. It’s highly important to protect this information at all costs because the damage can cost your brand’s reputation and it can take a long time to recover from this.
Many times, people access fintech services and products at their best prices and in the best conditions. This was due to partnerships between fintechs and other companies, which allowed massive data sharing. But moving forward, with new GDPR rules, fintechs need to implement different data protection and legal measures to make sure their clients’ data stays safe.
Apps can access people’s profiles and various information to facilitate different transactions. Vulnerable codes can be exploited as an entry point into the fintech’s infrastructure and network.
To ensure this doesn’t happen, apps need constant updates and testing to ensure that they are protected at all times from cyber attacks.
Managing digital identities is a crucial part of fintech’s security. Fintechs and other companies rely on creating comprehensive, easy to use omnichannel experiences. Before the smartphone implementation of biometric sensors (fingerprint recognition, face ID, and so on), security relied on pins and passcodes. Nowadays, though, people use these identification ways that are, on one hand, faster and easier to use, but on the other hand, dangerous if cloned. Fintechs need to pay close attention to the ease of data sharing, as these authentication ways communicate with all service providers in the same way.
Another crucial aspect that needs to be taken into account is malware contamination on more than one platform. This integrated communication between all the apps used by one person makes it easier for cybercriminals to contaminate one platform and then move onto another. This, again, requires constant care, updating, and using the latest protection methods.
Fintechs have access to crucial information that can help identify individuals. That’s why they must stay updated with the latest technology in order to protect sensitive data.