Technology has now penetrated practically every corner of every major industry on the planet as a result of global digitalization. As a result, it’s no surprise that the banking sector has seen significant digital advancements as well. The financial technology business, sometimes known as fintech, arose in response to customer demands for simpler, faster, and safer financial transaction handling.
FinTech is a diverse industry that spans various industries. According to CB’s research and analyses, there are presently many VC-backed Fintech unicorns worth a total of $154.1 billion. Furthermore, the marketplace only raised $13.4 billion in the first half of 2021. Security must be at the center of banking and fintech app development because fintech applications deal with important personal and commercial data. However, when it comes to the facts, digital banking has a number of security difficulties. Vulnerabilities in FinTech applications include data leakages, data storage difficulties, and inadequate encryptions, to name a few.
A privacy breach is the sole cause of a FinTech initiative’s failure. As a result, if you’re planning to build a fintech app, making it secure should be a top priority. Knowing the underlying basics of fintech application security is essential for a successful business.
But, the question is, how to build a secured fintech app?
Well, that’s what we are going to discuss in this blog! This blog will provide you with all of the information you require to begin working on your idea. Let’s continue reading to learn how to build a fintech app and bring it to the next level. So, let’s start!
What are fintech apps?
The financial apps will aid in the management of savings accounts and the tracking of debits, deposits, and credit ratings at any time and from any location. Custom applications consolidate all of your financial data onto a single platform, making it easier to manage your accounts. The fintech sector is expected to reach $309 billion by 2022, according to PRNewswire.
Some other stats of the fintech industry:
- Fintech will account for 33.3 percent of loan granting and application processes in the United States by 2022
- Over recent times, the use of fintech apps has surged by 354 percent
- 65.3 percent of Americans will use digital banking by 2022
As we’ve discussed, the fintech industry has a sizable market. Now, let’s see,
What types of fintech apps are there?
It’s difficult to create a financial app, but fintech app development is extremely profitable. When considering constructing a fintech app, it’s critical to choose the correct type of app for your company. The following is a list of a few of the most popular fintech application types.
- Digital Investment apps
- Digital Payments app
- Digital Lending apps
- Digital Insurance apps
What are the security issues that fintech firms must deal with?
The financial sector is brimming with privacy and confidentiality about persons and businesses. Data is now available in digital formats as a result of the FinTech revolution, making it easier to examine and develop analytics. However, ease has welcomed a slew of data breaches, making FinTech particularly vulnerable to security concerns.
With the growing number of online services, data ubiquity and data security are big concerns for FinTech. With the advent of online and phone banking, businesses amass a large amount of client data. Analyzing this information yields insights into purchasing trends, acquisition, and retention strategies. It is quite difficult to safeguard such a large volume of data and provide it to clients in a secure manner. Another issue you may have is controlling consumer access to numerous services and solutions.
How to build a secured fintech app? Key points to consider during finance app development!
In this part, we’ll walk you through the many phases involved in developing a FinTech mobile app.
#1. Start with an app logic
Integrating security into each step of the app usage process is critical if you’re developing a FinTech app. However, there are a number of flaws in this first critical phase, which is unfortunate. A project-wide security policy ensures a secure environment for all participants. As a result, it’s critical for you to figure out what kind of sensitive data you’ll be dealing with and how you’ll protect it. The creation of a secure infrastructure is critical in the early stages. If your application runs on the public cloud, for example, be sure you’ve chosen a credible cloud merchant who is committed to security, laws, and regulations, as well as modern cloud security standards.
#2. Follow best coding standards
Whenever it comes to detecting any kind of vulnerability in the event of a data breach or assault, algorithms are crucial. The FinTech app code you propose to build should be easily transferable between devices. The code should be adaptable enough to allow for future adjustments.
Providing input validation and evaluation of data being transferred to external networks is one of the best practices for writing secure code. While hackers try to introduce harmful input into your code, input validation will sanitize or reject it. Define explicit access controls and keep track of who gets access to the app’s fundamental features. This will aid in the implementation of preventative steps to maintain proper data security. SQL injections should also be avoided in your code. SQL injections are the most straightforward technique to compromise fintech apps.
#3. Include methods for Authorization
Another significant consideration is ensuring that users are who they claim to be. To accomplish this, you’ll need a well-functioning identification and data authorization system. It is critical to safeguard yourself. Check to see that the API blocks access to all important regions. Offer two-factor authentication as an option. Offer the user the highest level of security while requiring the least amount of effort and time on the user’s site throughout the user registration.
#4. Test the app
Regardless of the time constraints, you must guarantee that your Fintech application is thoroughly tested at each stage of development. Security testing is a critical topic because it is accountable for a critical portion of application functionality.
FinTech apps are unique in that they must be continually evaluated for security. There are a few testing stages that must be included in the FinTech app development process:
- Check network security
- Test client side
- Ensure servers security
- Build a solid API strategy
- Do functional testing
#5. Include 2FA
2-Factor Login is a great way to improve the security of your app by going beyond the basic authentication technique of a username and password. Using a one-time code sent via SMS or email is one of the most frequent methods for two-factor authentication. A push notification is another common approach that allows users to verify themselves with a single touch.
#6. Use payment blocking
A payment blocking function in a fintech app development can prevent unexpected conduct such as withdrawing money from an unusual location or withdrawing an unusually large amount. Many banks and financial institutions employ these safeguards to protect their customers’ funds and personal information.
#7. Hire the right fintech development company
While sharing their data, a professional and knowledgeable mobile developer can protect Fintech users from the vulnerabilities and threats that exist around them. As a result, hiring a developer is an investment that will pay off sooner than you expect. Furthermore, a developer is critical to the overall project’s success and assuring security at every level of Fintech app development. Quytech, as a prominent finance app development company, can increase the possibilities and make your apps more secure thanks to experts in this field.
As you’ve seen, how to build your fintech app more securely. Now, let’s talk about,
Top dominating fintech app development trends!
Consider these revolutionary trends outlined below while planning a fintech development project:
#1. Blockchain Technology Integration
A blockchain is a collection of immutable data blocks that have been time-stamped. The data of a new block cannot be edited or removed once it has been joined to the chain. Data security is ensured via a decentralized approach to data storage. Blockchain is a highly dependable solution for open data transfer and transaction recording in fintech because of these qualities.
#2. Artificial Intelligence integration
Neural networks are used in Artificial Intelligence to recognize and evaluate patterns in the input data. Artificial intelligence (AI) has shown to be a useful tool for analyzing and offering solutions based on real-time data streams. It allows AI to be used for a wide range of financial institution problems. For example, the creation of financial advisory services or the detection of fraudulent activity. As a result, AI is the answer to the question of how to create a crisp and dependable financial app.
#3. Employing Microservices
Microservices are a means of organizing an application into a collection of interconnected services. Fintech apps become distributed platforms with decentralized data management in this fashion. Fintech app development gets easier because any essential service may be easily integrated into your infrastructure. Microservices, on the other hand, go together with blockchain and AI.
#4. Biometric security
The more layers of protection you have, the more secure your application is for your users. Fingerprint and face recognition will aid in the protection of user data from illegal access.
To sum up
Fintech applications have advanced the financial industry. Fintech applications have opened up a slew of new doors for enterprises. If you decide to start a fintech company, you have a good possibility of making it successful and profitable. Of course, you’ll face numerous obstacles on your path to success. What technologies should you use to build a financial app? How can you create a fintech app that will stand out in a crowded market? All of these obstacles, as well as a slew of others, may be easily overcome with the right finance app development company on your side.
Experts at Quytech have a lot of experience with fintech. We learn how to design a financial app that your audience wants. Check out our portfolio to learn more about our background. We believe that one initiative can improve the entire industry; therefore let’s not waste any time and start working on it!