We are living in the age of digital information, when education, medical services, and of course, 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 (even as we write this article), in order to help prevent and even counter such malicious attacks, especially those done against financial data security.
In fact, in this article, we are going to share with you the trending developments in fintech this year.
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, but 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, there is no wonder why special steps are being made in creating technology that will not only prevent these issues from happening, but also in dealing with the after-effect (such as alternative and more secure ways of backing up data).
One crucial aspect in maintaining cybersecurity is the ability to track and manage changes done 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 being alerted that such changes are made.
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.
Cloud services are great because they offer added data security against accidental data loss, corruption, and even natural calamities (such as fire and water damage). In addition, they also make your data more conveniently accessible wherever you are, and whomever you give access to.
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.
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, offer increased support and accuracy to fintech transactions, and even provide useful analytics. These data can even be used to determine existing vulnerabilities and potential methods to further improve your system’s 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 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.
Finally, leaps and bounds to further secure cashless transactions are also currently being done due to the rapid decrease of cash use. Experts even predict that we are moving towards a cash-free world as 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.
Indeed, the future of cybersecurity in fintech is bright and exciting. While most of them are technologies that are intended to further secure or integrate into existing systems, we expect that there are other advancements 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.