We all have heard the news where companies suffer billions of dollars of loss due to data breaches or downtime due to some technical errors. For context, an NBFC named Equifax has lost $4 Billion USD due to a data breach as mentioned in a report from money.com.
Those billions would have been saved if the efficiency and security of their software application were prioritized from the get go. It was said that they budgeted $200 Million USD for security enhancements of the application which they eventually passed on and never actually implemented.
If you are a developer or an entrepreneur who is on the market or preparing to go on the market with a fintech software application then this article is a must-read.
With over 18 years of experience in delivering fintech software solutions and 150 vetted IT professionals working at MSBC Group, we have valuable insight to offer when it comes to building an efficient and secure fintech application.
Start implementing security from product conceptualisation
When you have an idea, you research the market, user behaviours, user interests and much more. Along with this, you also research about the potential threats your application might have after launch
Also, look for the loopholes that might have been exploited in the past for applications similar to yours and try to fill that gap by being proactive and planning the development process only while taking care of the ‘Risk research’.
Infrastructural security is ignored a lot of times while developing any application. Be very precise while selecting the application server (if you are using a third-party service). Do account for security along with speed, performance, and efficiency of the servers..
If you have installed a local server by yourself, maintain standard operating processes for it. Do not install third-party apps on the application server and set up perimeter defense technology to ensure a secure environment.
Build a solid Identification, Authentication & Authorization system
Identification is the first phase of any user entering your application. Mostly it is done by creating a username and an associated profile. Authentication means confirming the identity that a user is claiming to be. This is generally done by passwords or biological authentication like Touch ID, Face ID and OTPs.
Now once the identification and authentication processes are done, the next step in terms of the software is what areas the user is authorised to access. This is decided by the algorithms and the database.
Don’t let API compromise the security
Building a fintech application requires a lot of pre-built resources. APIs are used to integrate an existing module of another application into your application. Make sure to do a detailed analysis of the APIs you are integrating.
APIs are great, but an API with poor security can act as an open doorway for the hackers and attackers to enter your application unethically. Thus, be careful about the APIs you use.
Test, test & keep testing…
As the famous saying goes ‘Precaution is better than a cure' this can also apply to fintech applications as well. Skipping test phases for minor updates can cause major loopholes to happen without you even noticing.
Testing an application is repetitive and boring, but it is as important as developing the whole product. Thus, make sure to take all the updates and code through all the testing phases before making it live to cross all t’s and dot all i’s.
Use data encryption
This is more of a backup and risk management plan. Even after all the efforts, using the most secure environments and testing thousands of times, if a data breach happens then the encrypted data can still save you.
Data encryption will not prohibit any data breaches, but it will surely bar any third party from reading it and using it unethically.
If you have read the blog till here, we hope that this was insightful for you. MSBC Group has assisted a lot of entrepreneurs & business owners to build their dream financial platforms. If you are looking for a perfect fintech software solutions partner for your business then feel free to contact us.
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