In any financial service especially FinTech companies like mytalu, cybersecurity is absolutely paramount as not only does it ensure the company’s credibility but also the consumer’s safety. Due to the nature of an online digital banking platform, it makes it susceptible to all kinds of risks but fortunately, the technological advances within the FinTech sector keep coming up with effective ways to combat any cyberattack risks. This week’s blog focuses on the risks of cybersecurity and what FinTech services are doing to prevent incidents from occurring.
1. Cloud computing
One of the ways in which FinTech services guarantee their client’s safety is through using a cloud computing system. This system generally prevents risks of third-party users as well as any potential data losses or issues as it allows FinTech services to safely manage large amounts of data in a more effective and secure way. Ultimately, the use of cloud computing systems has massively innovated the fintech industry as it is also quite cost-effective.
2. Data encryption
Data encryption is extremely essential in FinTech as it is what largely prevents any kinds of malware or cyberattacks, as well as any kind of fraud and identity theft. The purpose of data encryption is to ensure data security through protect it on the cloud computing systems that FinTech uses, therefore securing both kinds of data; structured and unstructured. Furthermore, the use of data encryption also builds a trust-based relationship with clients as it guarantees that their data is safe.
Globally, FinTech companies have to comply with their country and regional regulations, and this mostly points to companies having to comply with Know Your Customer (KYC) regulation, as well as the General Data Protection Regulation (GDPR). These rules guide aid fintech companies in certifying that they can collect and verify their client’s data safely and securely in a more efficient manner.
When it comes to cybersecurity measures, blockchain proves to be quite effective in ensuring safety as it digitalises all processes making it a lot harder for hackers to interrupt any transaction processes. This essentially means that blockchain creates more of a transparent method to use cybersecurity data which in the long run helps fintech cybersecurity measures for the better.
The future of cybersecurity in FinTech
From looking at the different cybersecurity measures that are taking place in FinTech services today, it is evident that the future of cybersecurity in this industry is very promising. Seeing as systems such as cloud computing, data encryption and blockchain have already accomplished ways of preventing malware attacks, and identity theft as well as increased security amongst company-customer relations it can only get better. However, the most promising advances for cybersecurity are seen in Blockchain and AI as they are constantly coming up with new innovative ways to ensure safe digital banking.