FinTech providers are increasingly becoming an integral part of the banking ecosystem, and with this comes an increased level of responsibility for security. This has become a significant challenge in today’s fast-paced financial environment, as financial companies must balance the need to provide their customers with the most up-to-date applications while ensuring the highest security to protect personal information and comply with strict industry regulations.
The reality is that the highly sensitive and valuable information that is contained within FinTech systems and apps is increasingly targeted by hackers who are on the lookout for personal financial information. With this in mind, here are the top security challenges facing FinTech today:
Data Security
The security of financial customers’ data, personal employee information, and sensitive documents is the top priority for any FinTech service provider. They must be able to provide sufficient security to minimize the chances of data breaches occurring. This requires multifactor authentication to ensure that only people permitted to access systems and data are granted that access.
Cyberattacks
Malware, ransomware, and other forms of cyberattacks are becoming increasingly sophisticated. These attacks come through emails, third-party software, and other sources and are a growing concern for FinTech companies. Educating employees, backing up data, monitoring users and devices, and using data encryption are just some of the ways to prevent cyberattacks from occurring.
The Cloud
More and more industry data are being stored on the cloud, and FinTech is no exception. While there are many benefits to hosting data and services on the cloud, it has the potential to increase security risks. For this reason, it is critical that FinTech companies choose cloud services that have a proven track record of reliable security and that their cloud resources are properly configured to minimize the chances of cyberattacks and data breaches.
Third-Party Services
Many FinTech companies rely on third-party applications, which can become easy access points for hackers to gain unauthorized access to financial systems and data. For this reason, it is vital that FinTech companies partner with highly reputable third-party software providers to help prevent data breaches.
Regulatory Compliance
Technology is advancing faster than regulations can keep up, leaving FinTech providers dealing with regulatory requirements that can hinder their progress when it comes to meeting their objectives and delivering their products on time. The key to overcoming this hurdle is to maintain open communication with regulators, which can help FinTech providers continuously adjust their business goals to meet existing regulations.
Avoiding the Rush
While FinTech companies may desire to get a product to market as quickly as possible, this cannot be done at the expense of security and compliance. It is critical that security is built into development policies and procedures, which means addressing security concerns as a priority over rushing to get the product to market.
The financial industry represents a dynamic environment, and FinTech must meet its constantly changing security needs to protect sensitive data and personal information. Contact Platinum Technologies today to find out how we can help you identify and develop solutions for your FinTech security challenges.
