7 Tips to Build a Secure FinTech Application
Ashley Corn October 27, 2021

Financial technology is an industry that requires a focus on security to assure the users. The comfort cannot compensate for the security of the sensitive data for these apps. Thus, building a FinTech app for the users is not as simple as providing any other solution.a

Financial technology is a sector that will continue to experience exponential growth around the globe. The reason for the growth is the growing popularity of eCommerce businesses and independent financial institutions. Also, the pandemic allowed online businesses to flourish because of travel restrictions.

Still, you should consider the various problems before investing time and money to build a financial application.

Security Challenges for FinTech Applications

Your application should overcome certain challenges of FinTech to provide a secure environment for the users. The first challenge will include digital identities and data ownership to authenticate the users. Hackers will make their best efforts to get access to this information after bypassing your security measures.

Moreover, you can expect a series of threats while migrating the data to a different platform. Malware attacks are also common on the apps where the financial credential is available in the database. Therefore, you must increase your budget for the security measures with no broker loans to stay one step ahead of the hackers.

Tips to Build a FinTech App

Your business idea or its operations may require a FinTech app for the users. Now, you need to address the different security issues while providing a great user interface to serve them. The following tips may help to create the ideal plan while trying to build a secure FinTech application.

Recruit the Right Team

Your team members will have a serious responsibility when they sign up to create an app with financial data and transactions. You must have suitable candidates for the job since even small mistakes can jeopardise the entire project. A perfect combination of skill and experience is essential to create a secure application.

Many businesses outsource the task to freelancers or service providers to reduce the stress. You must check their website to assess their experience and expertise for your requirements. Also, check the online reviews to set expectations for their service before shortlisting the candidates.

Work on a Secure Architecture

A secure application will require emphasis on security during every stage of the development process. The developers will create an architecture for the app for a layout to store and manage data. You need to make sure the architecture follows the security standard to create a strong foundation.

Also, work closely with the coding team to ensure the code satisfies your security requirement. The hackers will try to find loopholes in your code to access the sensitive data of the users. It will help to take expert help and thoroughly test the code before the next stage of development starts.

Implement Code Obfuscation

Cloning of the application to use the naivety of the users to collect their information is a common practice in the world of cybercrime. Code obfuscation is the solution for financial institutions to prevent app cloning. It will make it extremely difficult for the hackers to analyse the data or understand the algorithm.

Code obfuscation will include encrypting the code to limit access to it after authentication only. Some developers put meaningless labels or code to create confusion for the hackers. Also, you might have to strip out revealing variables, naming classes, and metadata to protect the code from simple cloning.

Build Secure Processes

It may sound obvious, but you must work to improve the security of essential processes such as identification and authentication. People need to first prove their identity before accessing the data from your application. Your team should take every step in the authentication and authorisation process very seriously.

The use of complicated passwords is common with a combination of upper case, lower case, numbers and special symbols. If possible, you can add biometrics to your apps with the use of smartphone security features. Moreover, multi-factor authentication will increase the security layers to prevent unauthorised access to users’ data.

Log Everything

FinTech industries need to monitor every transaction to find suspicious activities in their system. It will help protect the user data and report fraudulent transactions before they cause irreversible damage. Therefore, you should log everything in your app to monitor the data.

The logs should contain every activity of the user that includes the ID, IP address, geolocation, and device data. The users should have instant access to a report of their actions and transactions. Also, the system should notify the employees of a high-risk transaction to eliminate the chances of fraudulent transactions.

Encrypt Data

FinTech apps should have strong encryption to protect the data during transmission. You can afford some program or hacker to have access to the user credential when they initiate an action. The encryption will ensure they cannot read the data even if they somehow possess the data packets.

You must also encrypt the mobile data stored in the local storage. Multiple industry-tested algorithms are available to provide security to the sensitive data of the users.

Conclusion

To sum up, the focus on security during every process is critical while developing a FinTech application. A security breach can result in your users losing their sensitive data to hackers. And there is no end to the consequences for them and your organisation in case the risk becomes a reality.