Security Concerns to Keep in Mind While
Building FinTech App
September 15, 2023
With technology innovations over the years, every business has changed for almost all industry verticals. Talking about the finance sector, everything is now digital from financial transactions, and investments to loan approval, all is possible with just a tap of a button. Thanks to the evolution of financial technology, the way we manage money has changed with new platforms and apps that have grown exponentially over the past few decades.
In this blog, we will learn about the importance of fintech cybersecurity for businesses and the increasing need to address security challenges while building the fintech banking and financial services app.
Significance of Fintech Cybersecurity
With a tremendous increase in the number of users embracing the digital finance revolution, there is an increased demand to address fintech cybersecurity concerns. Statista Research says the total number of digital banking users in the U.S. is expected to reach 217 million by 2025 from 197 million in 2021. The news about data breaches and cyberattacks still pop up as hackers are constantly active in tampering with vulnerable data and breaching security protocols.
These unfortunate events can lead to the loss of millions of dollars and can tarnish the brand’s reputation and credibility in the market. We can consider the example of an American multinational consumer credit reporting event, Equifax witnessed the biggest data breach event, costing them nearly $4 billion, which even exceeded the cost of putting security measures. Apart from that, the company also spent $1.4 billion on clean-up costs like app improvements & data security costs.
Also Read: From Payments to Super Apps – Redefining the Future of Digital Finance
To rescue such malicious cyber-attack events, you must be aware of the best security practices that can help you create a fintech app that is secure and safe for your customers. With an increasing number of mobile banking users, building a custom FinTech app with robust security measures can be a wise choice to avoid such threats.
In the next section, we will check out how you can build a secure fintech app.
Effective Ways to Create a Fintech App with Best Cybersecurity Practices
Hiring the right iOS and Android App Development Company that has expertise in building fintech apps with strong cybersecurity approaches is a must to ensure cybersecurity in the banking and finance sector. Apart from development expertise, your experts must have awareness of fintech security compliances such as PCI-DSS and GDPR.
Here are some of the top ways to ensure that you build a secure fintech app for your business-
- Know Your App’s Purpose
The most important step is to know what your fintech app is going to achieve for your target audience. You can do so by defining the main purpose of your app, which is the first phase of app development. This can be anything like providing a solution for mobile banking, investment management, loan approval, peer-to-peer lending or any other financial services.
Gaining a clear idea of your fintech app’s purpose will help in deciding the type of app you need to build for your target audience, thereby ensuring that you move ahead towards your business success.
- Plan the Main App Features
After defining your app purpose, it is now time to outline the core features and functionalities of the FinTech app. Irrespective of what features or functionalities you add to your app, ensure that you keep the focus on security features like user authentication, smart notifications, safe transactions, account management, real-time updates as well and analytics.
Planning your app features and functionalities well ahead of time will help you build a roadmap for the development process.
- Seamless UI/UX Design
Having an intuitive interface is essential to gain the attention of your target audience. Always make sure that you build an easy-to-navigate and visually appealing app interface that helps customers use the app seamlessly across any app functions. Give special focus on app convenience, accessibility, security, and transaction flows for a seamless UI/UX design.
- Build and Deploy the App
Using the right development stack and technologies, start the app development process to build a robust and secure fintech app. Also, take time to test your app rigorously before making it live in the market for usage by real end users. Testing will help to identify and resolve any bugs or glitches before launching it to the market and even avoid any big mishaps in the future saving costs and efforts.
- Review, Monitor, and Iterate
Even after the successful development, your fintech app needs to be constantly monitored based on app performance, feedback, user engagement and security. This is important to ensure that the app is successful in the long term in the fintech industry. Additionally, you can make use of analytics tools to gain insights into user behavior and make updates with the security standards to enhance the app performance as per the market trends and user feedback.
After going through the steps explained above, you must be aware of the tactics that you must keep in mind to ensure that your fintech app is safe for your customers. Talking about the development cost of the fintech app, we cannot define the exact app development cost as it depends on several factors such as app platform, target audience, app’s features and complexity, level of security, etc.
However, talking about the rough estimate of the app development cost, fintech app cost can range from $50,000 to $300,000 and more, depending on the factors discussed above. Whether you are building a basic fintech app or an advanced one, ensure that you are aware of the best practices to keep your app safe from cyber-attacks and help gain a competitive advantage among other fintech players.
Also Read: Embracing Web3 in FinTech to Harness Decentralization for Better Security
Closing Statement
With the increasing number of tech-savvy customers, handling finances online has become a necessity and the most preferred option. However, building secure fintech apps is still a main concern for many fintech firms with many cybersecurity news revolving around the corner. Building fintech security solutions is not an easy task but is possible with the help of the right technology partner and expertise.
Being a reliable Custom Fintech Software Development Company, we have a bunch of experts who have years of experience in navigating cybersecurity challenges and building robust Fintech apps for different clients across the globe. If you are planning to build a high-grade and secure fintech app for your business, talk to us today!