Introduction
Generally, the FinTech Industry prides itself on its security and that is because it has such innovative and effective ways to ensure protection of its services. In this week’s blog post we look at different aspects of FinTech safety such as cybersecurity, KYC procedures and blockchain whilst examining how secure they are as ultimately these methods are what provide consumers with confidence when using FinTech services.
Cybersecurity
Cybersecurity within FinTech is constantly evolving and this can be seen through the different aspects of it. One of the main ways FinTech’s ensure cybersecurity is through data encryption. This is used to essentially prevent any malware or cyberattacks and is mainly done through protecting it on cloud computing systems meaning it protects both structured and unstructured data. On the other hand, cloud computing is also a crucial part of cybersecurity as not only is the system cost effective but it also warrants the protection of data from third party users.
KYC (Know Your Customer)
Another fundamental aspect to ensure safety within the FinTech Industry is through KYC procedures. This is essential for FinTech companies as it enables them to fully verify new users at the start of the onboarding process and to identify any potential fraudsters. The process involves users submitting various ID documents as well as supporting documents and this gives FinTech companies a chance to review each user, giving them an insight into their financial intentions, therefore ensuring safety.
Blockchain
Blockchain is a system that creates a safer method to use and store data which makes it quite an effective method to use. It is known for being a distribution ledger within FinTech services which reduces a lot of risk in the long run. Not only can it determine authenticity of data entries but also provide Fintech institutions with the ability to ensure safe transactions within their services.
What the Future holds
From looking into the numerous safety measures that FinTech services use it is evident that blockchain is quite fundamental as it aims to prevent any kind of cyberattack or fraud activity. Looking to the future it goes without saying that there will be even more innovations in all of the areas listed above and there is hope for even more effective methods of security to be used in the near future.
