If you compare the cost of compensating your Fintech clients for damages caused by a major data breach with that of investing in advanced security measures for your Fintech app, the difference is like day and night. In 2020, Equifax, an American consumer credit reporting agency, suffered one of its worst data breaches, which cost them about $4 billion in just a matter of days. This goes to show the importance of developing a secure Fintech application.
But how do I create a secure Fintech app? It all starts with choosing the right Fintech design and following the clearly defined Fintech website design best practices. In this article, you’ll learn how to develop a secure Fintech app.
Important Steps to Developing a Secure Fintech App
With all the evidence of how Fintech is changing the business world, you should consider developing a Fintech app for your business. But as you develop the app, your priority should be the safety of your customer’s data. Remember that their reputation and survival depend on this. Here are essential steps you need to take to make your Fintech secure.
Include Security Measures for Each Step
From onboarding new clients to completing financial transactions, every stage of the process is vital. So, you should integrate your security measures in every step, ensuring that the entire process is foolproof. Although your priority should be to protect the most sensitive information, don’t neglect any part of your Fintech app because the attackers are always looking for the weakest points.
You should also consider storing only the most important data on your app. For instance, it may not be necessary to store your customer’s debit and credit card numbers for future transactions. Instead, you should only keep the tokens that identify the method of transaction. That way, the servers requesting future transactions won’t have access to the billing data. Your app should have a clearly defined permission structure to show the users who are permitted to access certain information.
With the current advances in technology, hackers can bypass the traditional methods of authentication, which include usernames and passwords. Therefore, you need to think beyond this type of authentication. The best way to upgrade your app’s authentication process is to incorporate the 2-factor authentication system. This includes a one-time code that is sent to the user through SMS or email and the push notification system that enables users to verify themselves with on touch.
Additionally, your Fintech App should be able to record every action taken by the user, including the User ID, IP address, location, device info, and transaction. It should also make these logs easily accessible for analysis. That way, it’ll be easier for you and your customers to deal with cases of unauthorized access. Your app’s authentication process should also include monitoring login attempts, sending alerts, and blocking unauthorized attempts to log in.
Write Safe Codes
Since your customer’s data will be saved on their device and the server, it’s important to write a secure code that can easily be scanned and tested for errors and vulnerabilities. This code should be responsive and compatible with different devices. That way, your software engineers can easily update it in the event of a breach.
There are many ways of ensuring that your Fintech app has the best infrastructure security. For instance, you can create a perimeter defense, which involves proxy servers and firewalls. All your routers must be configured accurately to prevent internal attacks. Secondly, you should update your operating systems and servers regularly. Creating a secure infrastructure also means not installing any apps or services on your servers and managing your third-party components.
Finally, you should put in place a backup policy for all your codes, files, and databases. The backup frequency depends on the sensitivity of the data and how often the data changes. With a backup policy, you can easily recover lost data in case of system misconfiguration or lost devices.