With rapid increase in adoption of Fintech, come increased security threats. Newer technologies like Block chain, Artificial Intelligence (AI) in the Financial services industry is not only reducing the manual work but also makes the transaction and services more secure, however the security challenges still remain as both these technologies are at nascent stage rather not fully commercially popular at large. Already there is a boom with online banking and more end users are seeing its financial use over mobile apps. In this context, there is a imperative need for identity access management (IAM) for securing financial services . To get to the simple definition of Fintech is any application of technology for handling financial matters. Few examples of it are – online and mobile banking, trading and investment applications, crypto currencies. The scope of fintech comprises of transactions related with:
- blockchain and bitcoin
- clearing and settlement
- deposit, lending and capital raising
- investment management
- market support
With all the tech surrounding fintech, there is a growing gap between the regulatory authorities and fintech companies . In case of conventional banks and exchanges, they operate in strict compliance with the laws and government regulations, while crypto currency apps, trading platforms, and crowd funding initiatives are yet to comply with the regulatory laws, as there is no jurisdiction applicable yet. Efforts is on by governments to bring these markets into its regulatory framework, yet still far from reality.
Fintech Organizations must mainly focus on the application security and the Cloud security. Ensuring total security in the Fintech applications is a definite must, because by compromising a FinTech app, Hackers can steal both the money and the identities of their users.
Some of the practices to be followed to secure fintech are:
- By upgrading the fintech services and making use of technologies is good, Securing digital identities is fundamental. Biometrics, one-time password, security questions are quite common authentication factors to secure the data, yet the rise of AI helps in securing the data by user behavioral.
- Every data of the user like his/her identity, transactions ,.etc. must be encrypted
- Use of public cloud is quite risky so having a private cloud is secure for data storage
Fintech is fast on the curve rising fast, the security vendors need to act smart to see the potential of this super rising industry. Security solutions have to be intelligent automated and must bring the support services as well and bring a comprehensive solutions for the fintech industry in particular.