How to Build a Successful Fintech App in 2024: A Comprehensive Guide

A blog with vital tips to ensure your Fintech company builds a secure app to avoid security issues on any system or mobile application.

Fintech (financial technology) is one of the most significant disruptive technologies that have revolutionized the banking and financial sectors. The growth rate we have witnessed in fintech is utterly exponential. Here are some statistics that show you how dominant fintech has become;

• The fintech landscape is experiencing rapid expansion, with digital transactions projected to reach a staggering $10.52 trillion by 2025.
• Statista’s data indicates a significant milestone in digital payments, with the transaction value set to eclipse $8 trillion by 2024, reflecting the widespread acceptance of digital payment technologies.

• According to Research and Markets, 2020, The compound annual growth rate (CAGR) attributed to the global Fintech market is projected to grow by 23.58% from 2021 to 2025.

1. Always Ensure the Code Written is Secure

Writing a secure code is one of the most vital security procedures you must take to create a secure fintech app. Such applications require the storage of essential and sensitive data on the user’s gadget. Such data needs to be safeguarded from security vulnerabilities at all costs.

This is why it is critical to use adequate security algorithms that will come in handy in detecting and eliminating code flaws that could consequentially culminate into dangerous vulnerabilities. Frequent code scannings are necessary to help uncover code flaws that hackers might take advantage of to infiltrate the app with all sorts of threats.

Ensuring code agility and portability is also a crucial security practice you should never ignore. A code that portrays such features will give developers an easy time when updating the code in cases of code threats.

Also Read: Top 8 Low Code No Code Trends for 2024

3. Adopt a Secure App Logic

Each step of the app usage must adopt a secure app logic. However, this is usually not the case, as most fintech apps start showcasing security flaws in the first step.

Some developers have also had the tendency to secure points that have sensitive data while leaving other app elements insecure. This is a poor practice, especially considering the fact that hackers tend to use more minor and unsuspecting features to access other parts.

To start with, it is crucial that all fintech applications explore and use the most robust app infrastructure. For instance, if the application operates on the cloud, it would be best to seek the services of an excellent cloud merchant who takes the application’s security with the seriousness it deserves.

Going for a decent storage service provider such as Amazon Web Services could help boost the security of your app. Amazon Web Services possess all the tools, guidelines, and procedures to protect mobile applications from the most devastating threats, such as the distributed denial of service attack. Such a service also provides you with enough assurance of service restoration in case of any disruptions.

4. Force Usage of Strong and Unique Passwords

All systems that deal with sensitive information and financial transactions must be protected using good authentication. Usernames and passwords are fundamental login credentials that all systems must use.

However, they are prone to attacks such as brute force and dictionary attacks. Such attacks usually leverage weak login credentials to access users’ accounts or devices. The remedy here is to stick to safe password practices.

For instance, fintech app developers should enforce strong passwords by requiring users only to use passwords of specific lengths and character combinations. Users should never be allowed to sign in using weak passwords. Additionally, users should be required to change their login credentials after a specific time.

5. Enforce Two-factor Authentication

A quick look at previous breaches will tell you that, more often than not, passwords and usernames have failed to provide the required security to apps and website accounts. Relentless attackers will not rest until they crack your passwords. The best option, then, is to use extra authentication factors.

With additional authentication, even when a hacker manages to get past your password or login credentials, the attacker will still not be able to provide the secret code, one-time password, biometric authentication (or any other extra authentication factor). Such practices will significantly help with the security of your fintech app.

6. Good Mobile Encryption

Data protection through encryption is another crucial aspect of fintech mobile app security. Both static and in-transit data must be attached to efficient encryption algorithms to protect data from theft.

Data encryption will convert the app’s data from plain text into ciphertexts. Only individuals with the proper decryption keys will be able to read and decipher the data. With good encryption, even if attackers force their way into accessing the app data, they will still not understand its implication, which means that the data will remain secure.

7. Have a Robust Application Programming Interface

Fintech apps, like all other mobile applications, use the application programming interface when interacting with backend information. As such, API tokens and keys play a very significant role in the efficiency and security of the fintech mobile application.

One of the best practices for safeguarding the application programming interface from security vulnerabilities is through token rotation. It would be great to keep the API tokens on frequent rotation. Lastly, the security of the application programming interface should consist of three fundamental elements; identification, authorization, and authentication.

Conclusion

Most companies have been investing heavily in fintech. Fintech apps provide companies and individuals with a golden opportunity to reach new global markets, manage credits, accounts, and savings, and facilitate electronic transactions. The fact that fintech apps hold a considerable amount of money and sensitive user data makes them an easy target for cyber attackers. Implement the steps discussed in this blog, and protect your fintech apps from security threats.

Zuci’s Banking Application Development Services is one of the top five Fintech Solution providers. Apart from this, our comprehensive security testing services ensure that your banking application is secure and reliable. With extensive experience in IT, we create unique fintech apps by leveraging the latest technologies. For customized web and mobile application development, get in touch with Zuci today!

Frequently Asked Questions (FAQ):

1. How much does it cost to build a fintech app?

The cost can vary widely depending on the factors mentioned earlier. A simple fintech app with basic features might cost anywhere from $50,000 to $100,000, while a more complex app with advanced functionalities could range from $100,000 to several hundred thousand dollars or more.

2. How long does it take to develop a fintech app?

The development timeline can vary significantly depending on the factors mentioned earlier. A simple fintech app with basic features might take around 3 to 6 months to develop, while a more complex app with advanced functionalities could take 6 months to a year or more.

3. What are the key security considerations when integrating third-party APIs or services into my Fintech app?

When integrating third-party APIs or services, conduct thorough security assessments to evaluate their security posture and potential risks. Ensure secure communication channels using protocols like HTTPS or API keys for authentication. Validate input and output data to prevent injection attacks (e.g., SQL injection) and implement proper error handling mechanisms. Monitor API activity for anomalies or suspicious behavior that may indicate security threats.

4. How should security incidents and data breaches be handled if they occur in a Fintech app?

Have a well-defined incident response plan that outlines procedures for detecting, reporting, and responding to security incidents and data breaches. Designate incident response teams, establish communication protocols, conduct forensic analysis, notify affected parties as required by regulations, and implement remediation measures to prevent future incidents.

5. How important is continuous security testing for maintaining the security of a Fintech app post-deployment?

Continuous security testing is crucial for identifying and mitigating vulnerabilities and security weaknesses post-deployment. Regular penetration testing, code reviews, and integration of automated security testing tools into the CI/CD pipeline help ensure ongoing security validation and resilience against evolving threats.

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