Challenges in Developing Fintech Application

Custom financial software development is very complicated process. It has long been known that the most common problem in the development of financial applications and the launching of new projects is security. Today, the number of various cybercrimes is growing by the hour. That is why, much attention should be paid to just the same security.

What are the most common security problems?

1. Mobile applications as an element of cyber threat

Fintech mobile applications get access to customer data. These applications are the ones most often targeted by cyber attacks so that criminals can access the infrastructure of the company and its internal network.

Tip: Implement a vulnerability management system.

2. Complex integration with third-party systems

The more integrations you have with third-party partners, the more vulnerable you are. All third-party systems are designed in different ways, which creates compatibility and cybersecurity issues. With a large number of such solutions, it becomes difficult to track potential attacks and prevent them before problems arise.

Tip: Implement a Secure Software Lifecycle (SDLC) by adding additional security controls to your existing development operations and processes.

3. Cloud solutions

Cloud solutions allow you to scale faster and cheaper. However, working with cloud storage requires additional security controls over traditional intranets and datacenters. A large number of cloud-integrated features and solutions involve data transfer and reduce the openness of the distributed environment.

Tips:

* Explore how your ISP keeps your data safe and secure. Implement on your part the maximum possible means. Make sure you fully understand where your data is stored.

* It is better to use one reliable provider than several small and unverified services.

4. Any third party services

All third-party services and applications used by the fintech project can also be a potential loophole for cybercriminals. Fraudsters hack them to get from there to your infrastructure.

Tip: Conduct an ongoing security audit of your system. Check partner services by launching test accounts first. Implement a vulnerability management system for your company.

5. Compliance errors

Finance usually issues licenses to fintech companies.(PI, EMI, and others). All of them must comply with all requirements, including the ever-changing rules of the PSD2 directive. For non-compliance with the rules of the regulator, at best, a fine is threatened, at worst – the revocation of the license.

Tip: Make sure your provider’s services meet all regulatory and PSD2 requirements. Use those solutions and work with partners that are familiar to the regulator. For example, the EpaySuite payment platform, with which we cooperate, is adopted by regulators and is used by many fintech companies around the world.

Summing up all of the above, we can conclude that there are many fintech development challenges. However, it is very important to pay special attention to security, as the degree of their vulnerability is growing every day.

Protect yourself now!