Many FinTech companies are not aware of the importance of cloud security and compliance in the industry to survive in the market.
If you’re a CEO or a top-line stakeholder of a FinTech company, don’t make this mistake. Because to achieve customer satisfaction and security, it’s mandatory to know how you can protect their data and financial transactions safely and securely without any attack.
Here, we’ve gathered every important aspect of cloud security and compliance, regulations, and precautions to be taken while running a FinTech company.
What are the tenets of FinTech security?
Let’s understand a few of FinTech security tenets in brief.
Having Strong Internal Network
If you have a strong and growing internal network, vulnerabilities will stay away from your company.
Protecting customer data
Without customers, your company won’t run. Security of their data will be your topmost priority.
Relying on vulnerability management
Vulnerability management and prevention and mitigation is also an important aspect of your business as a FinTech company.
Implementing access control
Access to data and systems in your company should be in the right hands and at the right time.
Observing, monitoring, and continually testing networks
Observing and monitoring how much load the server can cater and testing servers often will keep you on track.
Developing a robust IT security policy
Customizing IT policies for internal and external regulations in the company will boost the performance of your company.
What are the FinTech compliance regulations?
When it comes to FinTech compliance regulations, there are many depending on the location and country. Here are a few of those functioning in the United States.
- The GLB:- Gramm-Leach-Bliley Act is a law based on primary privacy for financial companies to make sure data privacy and confidentiality of customer data.
- The bank Secrecy Act regulates the detection and prevention of money laundering cases and criminal transactions.
- The US Patriot Act monitors KYC policies to ensure safe financial transactions and customer identification.
- For electronic documents and signatures, there is an E-Sign act that sets safety rules.
- The Truth in Lending Act exists to protect credit card holders from rate hikes, payment allocations, card disclosures, etc.
- Similarly, the Truth in Savings act also checks clear disclosure of interest rates and fees.
- To control online transactions, the Electronic Fund Transfer Act exists.
- There is a red flag rule by the Fed that says financial institutions should have a program to prevent theft.
Which major challenges do FinTech cloud applications face?
Data and Cyber Security
This is the major concern for developers to develop FinTech apps, where they need to consider the safety of all the customer databases like their banking IDs, passwords, CVV numbers, and majorly the transactions.
Difficulty in Complying with Various Regulations
As mentioned in the above subhead, there are multiple compliance regulations. Further, during fintech app development, developers need to consider these. Otherwise, there might be a challenge due to high regulatory fees.
Eye Catchy UX Design of App
It is a challenging task for app developers to offer user-friendly apps so that users will feel relaxed and able to perform smooth transactions.
One more mandatory challenge for app developers is to select Android, iOS, and other devices for app development for financial transactions.
Cross Platform Compatibility
Another challenging task for developers is to ensure that the financial app must be compatible with multiple platforms, and it should work for all platforms simultaneously.
Matching Customer Expectations
This should be the topmost challenge for developers. If they can’t match the expectations of users, it might be a disaster.
How to implement FinTech application security best practices to protect its cloud ecosystem?
Understand the Tenets of Fintech Security
It’s the basic steps to knowing the tenets of FinTech security for each company in the field, which we have already mentioned in the post above.
Implement Visibility and Traffic Analysis
Every FinTech company should track their audience and the quality of the audience; it’ll lead to detecting potential threats and attacks.
Upgrade Your Email Security
Having end-to-end encryption-enabled email communication will be the target action for any FinTech organization.
Keep Things Simple
Since fintech is complex, keeping things simple during operation and having fewer products and services will then be the best practice for security.
Improve Customer Awareness
Guide your customers to create secure passwords, and ask them not to share account details and passwords with anyone. Additionally, you can also convey to them to use 2-factor authentication.
Following basic rules and regulations, customer satisfaction, and protecting systems from cyber attacks will ensure every FinTech organization can deal with cloud security and compliance. In addition, FinTech cloud app security should be on your priority list.
We’ve tried to cover all possible ways to Ensure Cloud Security and Compliance in FinTech in this post. Hopefully, you’ve understood.
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