The world of Finance once rapidly shifted online. Now it is going mobile. Commonly referred to as Fintech, the sector is experiencing exponential growth. But with growth, come risks. If left unattended, these risks can cause a lot of problems.
Fintech is one of the fastest-growing industries. Financial service providers, app developers, and end-users keep discovering new and convenient ways to pay and receive money quickly and effortlessly. Even businesses are encouraging cashless monetary exchanges. While Fintech is quickly becoming the backbone of development, Fintech security solutions are quickly becoming a must-have for such businesses.
Which businesses, apps, services, websites, come under the definition of Fintech?
Fintech involves any and all businesses and solutions that come in contact with monetary transactions and money handling. In other words, internet or smartphone users who have ever paid for anything online, have come in contact with one or multiple forms of fintech.
Some of the notable mentions in the Fintech industry are:
- Paypal, Stripe, Payoneer, Venmo
- Cryptocurrency wallets or exchanges (Bitcoin, Ripple, etc.)
- eCommerce websites such as Amazon
- eBanking platforms or apps
- Stock market trading apps
- Crowdfunding (Kickstarter etc.)
- Mobile payment systems
Generally, any service or platform that is not a traditional banking institution, and is majorly digital, could be considered Fintech. Needless to mention, as these platforms deal with money, malicious code writers actively attempt to compromise their security.
Fintech solutions are at a greater risk primarily because a lot more than money is at stake. Such companies also collect, store, and process sensitive user data and banking customer information. Crippling their defenses means access to a treasure trove of information which is a lot more rewarding than a one-time loot.
Cybersecurity Solutions for Fintech Companies:
The problems and security solutions for Fintech companies are quite common with other online or internet-based companies that handle personal information. However, the major difference is the substantially higher monetary value of the data the industry processes on a daily basis.
Financial information is very valuable and hence, lucrative. Hence Fintech companies really shouldn’t be gambling with people’s money and data. In fact, a Zero-Trust approach towards its own internal infrastructure is also strongly recommended.
Some of the common and elementary security solutions for Fintech companies involve continuous and dynamic monitoring for threats, originating from inside and outside. Traditional security solutions involve:
- Antivirus, Anti-malware
- Hardware and Software Firewalls
- Dynamic staff awareness training
- Vulnerability and threat scanning
- Penetration testing
Instasafe is one of the few companies that offers a complete range of security services as part of the overall cybersecurity architecture. In fact, Instasafe is a cybersecurity partner that strives to ensure Fintech’s network, services, and the entire platform, in general, is fortified against security loopholes, vulnerabilities, etc.
Incidentally, cybersecurity for Fintech goes beyond protecting networks and information from ever-present cyber threats. This is primarily because the Fintech industry deals with money and financial institutions.
Regulatory Compliance with multiple agencies:
A cybersecurity plan for Fintech companies goes beyond standard security from hackers and malicious code writers. The financial industry, of which Fintech is a part, is heavily regulated and scrutinized. Fintech is uniquely positioned because it is forever evolving and adopting new, cutting-edge, and often disruptive technologies.
Gone are the days of simple monetary transactions. Fintech companies are handling cryptocurrencies. And Blockchain, a complex peer-to-peer ledger, is at the core of these encrypted monies that promise anonymity as well. Needless to mention, these industries need a cybersecurity partner much more than other businesses.
Some of the common compliance measures for industries dealing in sensitive data include:
- Europe’s General data protection (GPDR)
- Critical infrastructure cybersecurity (NERC)
- Department of Justice compliance (CMMC)
Moreover, there are regulatory compliance measures such as PCI DSS specifically for Fintech and payment processing platforms. Cybersecurity partners often help Fintech companies understand and ensure compliance measures are adhered to. Additionally, such regulations undergo significant revisions after major data breaches or security compromises. A robust cybersecurity plan must involve staying ahead of the curve by quickly adapting and evolving with the changing landscape.
Also Read: FinTech Security Solutions
How Cybersecurity Benefits Fintech beyond security and compliance:
Regulatory compliance is never optional. In fact, for the Fintech industry, it is mandatory and urgent. Governments seldom take a lenient approach with companies with poor regulatory compliance, especially when they are dealing with money and sensitive data. Experienced cybersecurity partners are well aware of the challenges, and help Fintech companies stay ensure seamless integration of new policies and security practices.
In this new world, where remote working is the new normal, Fintech companies are experiencing phenomenal growth. Average people, employees, and consumers are increasingly engaging in commerce online (e-commerce) such as payment systems, and gateways. A well-balanced cybersecurity partner can effectively show users that the Fintech company prioritizes user privacy and data security.
Fintech companies’ core survival and growth rests on secure handling of data, be it personal or financial. In fact, both personal data and metric data help companies grow. Hence, comprehensive and dynamic data protection is crucial to the overall running and success of the organization.
A reliable cybersecurity partner such as Instasafe can help secure the digital asset inventory of the organization and protect it from threats, both external as well as internal. Patterning with an experienced cybersecurity firm helps companies free their resources that can be better allocated to deliver top-quality financial solutions to customers.
Fintech has always been considered a rebel in the world of finance. In other words, they are path-breakers who constantly challenge the traditional ways of money handling and processing. Needless to say, such businesses need a cybersecurity partner and a robust cybersecurity plan to mitigate risks.
Instasafe believes in offering comprehensive solutions. These include everything from compliance assistance to full-stack cybersecurity architecture implementation, including Fintech security solutions.