We are living in the age of digital information. Education, medical services, and business processes are getting more and more digitized.
Along with all the conveniences, though, also comes the rise in cyberattacks. According to a Forbes report, cybercrime costs $2.9 million in damages per minute worldwide.
Fortunately, there are a lot of technologies that are currently being developed. These developments aim to help prevent and even counter malicious attacks. Such technologies focus especially on attacks against financial data security.
Key Takeaways
- Cybersecurity trends focus on increasing data privacy measures to combat cyberattacks, especially in fintech.
- Blockchain utilization improves data integrity by tracking changes and preventing unauthorized alterations.
- Enhanced cybersecurity in cloud services aims to reduce risks while ensuring convenient data accessibility.
- AI integration strengthens cybersecurity by identifying vulnerabilities and optimizing fintech transactions.
- Neobanking and cashless transactions are becoming more secure as digital finance continues to evolve.
In fact, in this article, we are going to share with you the trending developments in fintech this year.
1. Increasing Data Privacy Measures
The first trending development is the significant scaling of data privacy measures by financial companies. This is crucial not just to prevent identity theft of individuals and organizations. It will also prevent ransom attacks where hackers withhold massive volumes of data in exchange for compensation.
In relation, there are also a lot of developments that are specifically dedicated to dealing with ransomware. To make matters worse, fintech companies are the top targets of ransomware attacks.
In one report, it was found that 60% of small to medium-scale businesses fail within six months of a cyberattack like this. Thus, it is no wonder that special steps are being made to create technology. These steps aim not only to prevent these issues from happening but also to help in dealing with the after-effects. For instance, developing alternative and more secure ways of backing up data is essential.
2. Blockchain Utilization
One crucial aspect in maintaining cybersecurity is the ability to track and manage changes in a particular data entry. This can be resolved by utilizing blockchains. A blockchain is a data recording system that makes it impossible to make changes in a system without other users.
This technology is particularly applied in cryptocurrency to make sure that Bitcoins can’t be faked or hacked into. However, there are certainly other fintech applications out there that should rightfully be considered.
3. Increased Cybersecurity in Cloud Services
Cloud services are great because they offer added data security against accidental data loss, corruption, and even natural calamities like fire and water damage. In addition, they also make your data more conveniently accessible wherever you are. They allow access to whomever you give the necessary permissions.
On the other hand, this same accessibility can also cause a potential risk of unauthorized access. Hence, measures that can further strengthen user authentication are currently trending. Keep this in mind when you’re signing up for a cloud service.
4. AI Integration
Aside from blockchain technology and advanced user authentication, another trending technology in fintech cybersecurity is the integration of artificial intelligence.
It can strengthen the cybersecurity of existing systems. Moreover, it offers increased support and accuracy to fintech transactions. It provides useful analytics that can be used to determine existing vulnerabilities. Potential methods can further improve your system’s cybersecurity.
5. Neobanking Cybersecurity
Banking institutions are rapidly evolving to meet the demands of an increasingly digitized world. Neobanking is a good example. In a nutshell, a neobank is an internet-only bank or a digital financial institution as opposed to a traditional one.
They are becoming increasingly popular for their added convenience and speed. After all, most neobanks offer their patrons the opportunity to get their financial needs met within minutes. These include opening a new savings account, applying for a new card, or even taking out a loan.
Most cybersecurity in banking that is being developed right now is dedicated to neobanks. The level of security that you’ll be able to enjoy will definitely depend on your preferred financial institution. Regardless, just make sure that they are FDIC-insured so you won’t have to worry about your money getting lost.
6. Cashless Transactions
Finally, leaps and bounds to further secure cashless transactions are also currently being made. This is due to the rapid decrease in cash use. Experts even predict that we are moving towards a cash-free world. This trend is not just being observed in the U.S. alone but in other parts of the globe as well.
Cashless transactions already provide added security on their own since they can discourage theft. That said, advanced measures are still being developed to increase cybersecurity, given the digital nature of such processes.
The Future of Cybersecurity
Indeed, the future of cybersecurity in fintech is bright and exciting. Most of these are technologies intended to secure or integrate into existing systems. However, we expect other advancements to be in store for us that only the (near) future will uncover.
At the very least, we can all look forward to more secure online banking transactions, cashless operations, data privacy, and cloud access. We highly advise you to keep track of these trends, not only if you’re a part of the fintech industry but also if you’re a business owner or even an average consumer. After all, cybersecurity in fintech is an area that can all impact our daily lives.
