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Security Best Practices for Secure Fintech App Development

Alt text: Security Best Practices for Secure Fintech App Development


In one of our previous blog posts “Security Best Practices for Developing Secure Mobile Apps”, we talked about why developing secure mobile apps is a must and listed out various security best practices for developing all types of mobile apps. You can read that blog to understand the major aspects of secure mobile app development. In this blog, we will specifically discuss security best practices that need to be followed for developing secure Fintech Apps.


Table of contents

  • Fintech App Security - Challenges and Necessity

  • Security Best Practices for Developing Fintech Apps

  • Cutting-edge Security Solutions for Fintech App Development Companies


Fintech App Security - Challenges and Necessity

The major challenges of Fintech App Security are:

1. Stored data at risk

Fintech apps store very sensitive personal information, such as bank account details and investment details. If the storage processes or spaces are not secure and have vulnerabilities, then there are chances of data leakage. Attackers can directly access the leaked data and use it for criminal activities or to fulfill their ulterior motives.


2. Insecure APIs

Fintech apps use numerous APIs that link them to the backend services of banks, wallets, etc. Some APIs are built on open-source code, which may have security vulnerabilities. Such APIs are insecure and they can weaken the security of fintech apps.


3. Unsafe Communication

Fintech apps often communicate with external data sources such as NFC (Near Field Communication), servers, Bluetooth devices, various authorization mechanisms, etc. to function properly. But this activity is risky, as data may leak during communication or be intercepted by attackers.


The above challenges endanger Fintech apps’ security and their users’ privacy. To overcome these challenges and protect customers’ data & trust, it is necessary to implement stringent security measures and follow security best practices for fintech app development.


Security Best Practices for Developing Fintech Apps

Fintech App Developers should follow these security best practices to develop secure fintech apps:

1. Comply with security standards and regulations

Fintech companies and apps are generally regulated by the central banks of various countries. These banks have certain guidelines and standards for fintech apps to protect the privacy of users’ data, such as:

- Fintech apps should abide by Know Your Customer (KYC) requirements.

- There should be fraud detection systems in fintech apps.

- Fintech companies should obtain prior approval from them before launching any new financial app or feature.

By complying with these guidelines and standards, fintech app developers can ensure their products are safe and secure for use. Fintech app developers can also embrace the “compliance-as-code” approach. It means they can integrate compliance with app security regulations like PCI DSS (Payment Card Industry Data Security Standard), GDPR (General Data Protection Regulation), etc. into their fintech app development process. It will ensure a secure app development process.


2. Secure fintech app development infrastructure - APIs and servers

The development infrastructure related to fintech apps should be secured to make the apps more secure. Attackers target APIs and cloud servers because they are often the weakest links in the app infrastructure. Back-end security can prevent data leaks from the API and cloud infrastructure. Developers must also have a plan of action in case a security flaw is discovered in the infrastructure.


Alt text: Develop Secure Fintech Apps with Bugsmirror


3. Employ robust login features and user authentication procedures

Fintech app developers should incorporate robust login features and user authentication procedures in their fintech apps, and track user activity continuously. The apps should have security features, such as:

- Password changes should be made mandatory in the apps after a certain period of time, like once every 3 months.

- Users’ activities and their logins in the fintech apps should be monitored regularly, and any suspicious activity should not go unnoticed. Developers can introduce the feature of blocking an account after four or five failed login attempts.

- The login sessions of the apps can be timed to ensure less time for a potential attacker to acquire data from an account.

- Developers can add features such as adaptive authentication, which studies a user’s behavior, such as failed login attempts, and adds layers of protection if needed.


4. Implement Role Based Access Control

Role Based Access Control (RBAC) can help make fintech apps more secure. Fintech apps may have many roles defined, like administrator, manager, customer, etc. Each role will have access to certain data and processes pertaining to their role and will be restricted from accessing other parts of the apps. This role based access limitation will protect the data from unauthorized access.


5. Use tokenization

Developers can use tokenization to store sensitive data in their fintech apps as well as transmit the data across apps and platforms. Tokenization involves replacing a piece of sensitive information like a bank account number with a newly created random chain of symbols (Tokens). Tokens are linked to the actual data in an encrypted way. Only authorized users can decrypt the original information into a readable format using the specific tokens. A unique database known as a ‘token vault’ that stores all the connections between the original data and the generated token can be created and further protected by database encryption to make the apps even more secure.

Tokenization makes it easier for fintech apps to become PCI-compliant. It can be used for financial transactions such as NFC payments, online transfers, etc.


6. Rigorously test the fintech apps

Fintech app security requires extensive testing throughout the development life cycle, and for a few additional stages. Developers must ensure that their fintech app is assessed with utmost precision at every stage. During security testing, potential identity verification, authorization, application performance, data security flaws, etc., should be double-checked. A fintech app prototype may be tested a lot of times, and all the security tests should be performed securely.


Cutting-edge Security Solutions for Fintech App Development Companies

With the growing demand for fintech solutions in the market, fintech app development is rapidly booming, and so are the risks to their security. So, for fintech companies to become reliable and trustworthy and to gain a competitive edge in the market, their developers should follow the above-listed security best practices and focus on data protection.

Bugsmirror has secured numerous Fintech Apps and understands the security needs of Fintech companies well. If you have a Fintech app and are worried about its security issues, discuss them with us. We are sure our tailored solutions and advice will amplify the security of your Fintech application and reduce security issues. To learn how we can help you, contact us!

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