Fintech is the wild west frontier of loose regulations and killer app emerging tech and you need a sheriff. The fintech industry is seeing explosive growth, with more of our daily activities migrating to the digital space, fintech security solutions are quickly becoming a must-have for any fintech businesses.
Fintech itself is descriptive of a wide array of businesses and solutions but one thing that surely applies to every single one is data security.
What is Fintech
If you have ever paid for anything online, chances are you have dealt with some form of fintech. Fintech is short for financial technology, companies will create financial software solutions that could, for example, facilitate better payment processing solutions for consumers. Here are a few industries, companies, or software that is considered fintech:
- Paypal or Stripe
- Cryptocurrencies (Bitcoin, Ripple, etc.)
- Revolut
- Stock market trading apps (E-Torro etc.)
- Crowdfunding (Kickstarter etc.)
- Mobile payment systems
Generally, anything that is outside the traditional banking sector and is digital in some form or another can be considered fintech.
Fintech Security Solutions
The fintech security solutions, and problems for that matter, don’t vary too much from other industries that deal with personal data. The one difference being the value of the data they process. Financial data is very lucrative for any would-be attacker, second only to health data, and more importantly, as a fintech business, you really don’t want to be gambling with people’s money.
Traditional Security Solutions
Best practice cybersecurity for fintech should be your top priority when running a fintech business. On top of that, you would want to be employing cutting-edge data privacy techniques giving your customers the peace of mind they will be looking for. Traditional security solutions involve:
- Anti-virus, Anti-malware
- Firewalls
- Staff awareness training
- Vulnerability and threat scanning
- Pen-testing
Any cybersecurity company worth its salt will offer these security services as part of the overall cybersecurity architecture, but a cybersecurity partner will do so much more.
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Compliance
The financial industry, fintech included, is usually heavily regulated. Fintech though is in a unique position as many emerging technologies come directly from innovation in financial software. One of the fintech niches that appear in the news frequently is cryptocurrencies. The tech behind cryptocurrency, Blockchain, as a whole is still finding its identity and position in the market.
With the shifting regulatory landscape, it would be beneficial for any fintech company to partner with a specialist. Cybersecurity businesses, as a part of their available services, have a deep understanding of compliance measures for industries dealing in sensitive data ranging from:
- General data protection (GPDR)
- Critical infrastructure cybersecurity (NERC)
- Department of Justice compliance (CMMC)
- And much more.
There are already specific regulatory compliance measures surrounding payment processing, namely PCI DSS. Cybersecurity partners will not only understand the compliance measures that are required for your business, but they will be there when the inevitable changes in regulations relevant to fintech occur. Essentially a partner will help you remain ahead of the curve.
Beyond Compliance: How Cybersecurity Benefits Fintech
The regulatory environment is one that most industries simply cannot avoid. If the government swoops in to make regulatory changes to nascent industries, like fintech, then changes within the organization must be made, and cybersecurity partners specialize in that. But we must also understand why regulations are made, and in most cases, it is to protect the consumer from malpractice.
“In the middle of difficulty lies opportunity.”
This is where partnering with a cybersecurity firm benefits fintech the most, in the opportunities that cybersecurity companies see. A well placed cyber organization can see the salable benefits of security; services that can be marketed towards the end consumer.
In a post-Covid world where more of our daily activities are migrating to cyberspace, people will become more aware of online security practices and behaviors. These activities also include ways for people to engage in commerce online (e-commerce), i.e payment systems, and gateways. Partnering with a cybersecurity business shows the users of your fintech solutions that part of the business model priorities includes their privacy and their security.
Data Protection
Fintech’s business operations and lifeline is built on data, both personal data and metric data. The protection of this data, therefore, is crucial to the overall running of the organization. Metric data used to make better business decisions and ultimately offering better solutions to your customers.
These combined elements create the digital asset inventory of the organization and you will want to make sure it is not compromised in any way. You wouldn’t let rivals or bad actors sabotage a factory or a piece of land, and your digital assets should be no different.
Partnering with a cybersecurity firm ensures active protection of valuable data, so that you can allocate business resources to delivering top quality financial solutions to your customers, while also combining fintech and data privacy.
Finally, your customers’ personal identifiable information (PII) will be stored and processed in a safe and secure environment.
Traditional Models and Future Outlook
Fundamentally, fintech is disruptive technology. It challenges the traditional models of banking, it gives financial solutions to those that need it most, and in the best of cases, it opens opportunities where none are to be found. Cybersecurity, like fintech, is a future looking business, if the year 2020 taught us anything is that we are to expect the unexpected.
Having said that, we are the architects of tomorrow, for better or worse. Solution orientated businesses, and not ones that are solely profit driven, is the future of business. Customers are becoming more preoccupied about how you conduct business just as much as what the business produces and what it can do for them.
Integrating ethical business practice with consumer security and interest is the way forward for a better and brighter digital age. The correct handling of customer data is a prime example of how good business is to be conducted.
Trends show that most of us will be conducting our lives online, what better time is there to partner with a cybersecurity firm than now.
As the old adage goes:
“The best time to plant a tree is yesterday”
So start now!
RSI Security Partnership
Make RSI Security your cybersecurity partner today. With years of experience in the field we can offer everything from compliance assistance to full stack cybersecurity architecture implementation, including fintech security solutions.
We have a proven track record of satisfied customers and soon a satisfied partner, become a partner today!