In the age where people prefer to have every service on their mobile phones, the demand for financial services is at the top. This has encouraged software development companies to create the best and highly-secure fintech solutions. Today, we will learn more about it and understand the measures that are required to create a secure fintech app.
What is a Fintech App?
Fintech means financial technology. Fintech apps are nothing but applications built for the financial industry for providing services related to finance. It can be a software application or a mobile payment application. In broader terms, fintech describes companies that are using mobile devices, the Internet, cloud services, or software technology to perform financial services. Fintech software development techniques can be used from payment apps like PayPal to cryptocurrency.
Types of Fintech Tech Apps Software Development Companies Offer
Financial applications fall into various types. Some of the are –
Some of the classic mobile payment apps are Venmo and PayPal. These applications are made to accept and make payments. Software development companies create such applications with features like currency conversion, transactions, and more. The use of this type of fintech application has increased as it allows the users to transfer money across borders without any geographical location concern.
Wealth and Investment Apps
The fintech applications that are for the wealth and investment sector allow the users to buy ETFs and stocks from home. These apps also suggest options for investments. The options are based on your preferences.
The insurance applications collect information from the clients on a large scale. Therefore, having a process that is perfectly streamlined becomes very important. The process must be able to clearly visualize the steps and must have a polished UI. Besides, there are p2p insurance apps in the market that can help users to insure each other.
Personal Finance Apps
Budgeting apps are very popular in the fintech software development industry. It helps the users to keep track of their personal finances. It also notifies the user to record their daily expenses.
Cryptocurrency applications are the standalone class of fintech apps that resembles other applications like wallets, insurance, investment, and more, but stand on their own.
Steps to Create a Secure Fintech Application
While creating a fintech application, the software developers will have to include security aspects at every stage of the fintech app development process. Here we will go through its development process with the inclusion of security features at each stage.
Create Secure Infrastructure Security
Fintech applications require robust cyber security precautions within the IT infrastructure. Therefore, at the initial phase fintech software development companies secure the infrastructure. So that if the app is run in the public cloud, no issues are faced in its code. But most software developers prefer to choose reputable cloud vendors so that they come with modern fintech security standards. For instance, AWS enterprise cloud. It has taken a massive stand-up against DDOS attacks.
Secure The Logic of App
Creating a code logic by keeping security in mind means integrating security measures at every stage of the app. Each facet from data storage to password complications has to be protected against threats. For this, software development companies follow a specific practice to create secured fintech solutions. It includes introducing complex passwords, keeping a log of user performance actions, two-way authentication, monitoring transactions, and multi-step approval.
The code in the fintech applications must be such that developers can easily transfer it between devices and it must have an algorithm that can easily detect the flaws. For this, the developers write code that includes reviewing data and its validation. Besides this, another practice for writing secure code is to protect the code from SQL infusions.
Test the App
In the fintech app development process, thorough testing of code is required. And because of this, the majority of the technology programmers carry out penetration testing. It runs from faux attacks to detecting vulnerabilities of the fintech app. The standard process for testing the code is –
- Requirement Gathering
- Reviewing It
- Creating Business Scenarios
- Testing Functions
- Database Testing
- Testing Security
- User Acceptance
Web-servers are the most targeted place for infrastructure attacks. Therefore, developers have now made it a common practice to protect the users’ data with the use of an HTTPS SSL certificate. This helps the browsers to alert the users if the website is not secured. Besides this, developers also use VPN but it sometimes adds complexity during the setup phase.
Reducing the human factor becomes mandatory as it is the most common factor of a security breach. Therefore, to ensure an easy and fast recovery, developers have introduced regular backups of all files, code, and data.
Companies now undergo a certification called ISO 27001. It is one of the best security compliance that ensures the clients that the company is using top-notch security practices.
When it comes to the usage of fintech applications, the majority of the users run it on their mobile devices. And mobile applications use API to interact with the back-end of the app. Therefore, APIs can face threats and attacks. So developers need to ensure that they securely create the app. This has made it clear that the software development company needs to use API token rotation.
Secure Authentication, Authorization, and Identification of the System
Authentication, authorization, and identification of the software ensure that there is no suspicious activity going and also ensures application security. It also helps in making the passwords strong by bringing the password verification concept into the picture. The verification can be a thumbnail or a retina scan.
Using data encryption for users’ personal data is one of the most common and best practices a developer can follow. Encryption becomes a mandatory practice when it comes to fintech apps as the user will input his debit or credit card number. Besides, encryption can help in securing financial transactions. The most used encryption algorithm in fintech software development is AES. Even the US Federal Government uses it to secure the data.
The fintech application security is very essential as the data of the app can be highly sensitive. Therefore, software development companies hire skillful developers and quality assurance analysts who can enforce the best security measures in the application. Besides, by ensuring top-notch security measures in the client’s application, the development company can build its good reputation.