Building Trust: 5 Essential Security Features Your Financial App Should Have!
The financial ecosystem is prone to cyber threats, and thus, security isn’t optional here; it forms the crux of the entire framework.
The tech innovations aren’t just modernizing the way we do business, but it is disrupting the cybersecurity landscape, too. Day-by-day cyber threats are getting sophisticated, and thus, your financial data is not safe with a basic security plan.
You might be a business owner, entrepreneur, or just a homemaker using a financial application; one security lapse can cause you heavy loss. For businesses and the BFSI sector, it’s not just the financial crises but massive damage to brand reputation and customer trust.
That’s the reason security shouldn’t be given a second thought- it is a priority. It should be integrated right into the code for the deployment.
Let’s scroll down below to break down the non-negotiable security features in financial software. Here’s your checklist!
5 Must-Have Security Features in Financial Software!
1. Data Security Features- Encryption!
Data Encryption forms the basis of defence for every financial application. It converts your confidential information into an unreadable code, ensuring only authorized access, that too with decryption keys.
A recent report by IBM, “A staggering 59% of data breaches were targeted at Indian fintech companies.” This highlights the need to have robust encryption data security features to survive in this digital realm.
Here’s how your data is protected with Encryption:
- The unreadable ciphertext makes your sensitive data unreadable without the decryption key.
- Even if the hacker gains unauthorized access to your network, the encrypted data stays sealed and inaccessible.
- It blocks man-in-middle attacks during financial transactions or bank transfers.
- It helps financial applications meet critical data security standards (PCI DSS, GDPR, and SOC 2).
2. Passwords Aren’t Enough- You Need MFA!
In this era of digital transformation, having passwords alone looks like guarding a safe with tape- vulnerable, isn’t it? Financial applications cater to incredibly sensitive information, tuning to be the Hotspot for cybercriminals. That’s where MFA comes into the picture. It is one of the crucial security features in financial software to check.
According to Gartner’s Survey, “Fintechs leveraging multi-factor authentication witnessed a 70% decrease in hacking attempts.”
Here’s how MFA forms a critical line of defense:
- Implementing multiple security measures such as passwords, one-time passwords (OTPs), biometrics, and SMS verification significantly reduces the risk of unauthorized access.
- User’s passwords might be exposed to hackers through phishing attacks, yet they can’t access the financial application without
- Using multi-factor authentication for transactions, bank transfers, adding beneficiaries, and other high-risk actions secures fintechs from real-time frauds.
3. Control Who Can Access Your Financial Data!
User access control refers to a frontline defence strategy that allows permission-based access to sensitive, confidential information. It is one of the must-have security features in financial software, where access is granted based on the role and needs.
IBM found that “42% of data exfiltration in financial applications was due to rogue insiders.” This raised the urgency to integrate user access control as a data security feature in fintech.
Malicious threats don’t stand a chance when you control who gets in. Here’s how!
- Role-based access limits the exposure of sensitive data.
- Restricted access forbids the users from unintentionally deleting or editing the financial data.
- Permission-based data security features enforce proper data handling practices to prevent malicious attempts.
4. Stay Prepared for the Unexpected- Disaster Recovery Plan!
Even if your financial application is integrated with heightened security, it can be affected by cyberattacks or natural disasters. A comprehensive Disaster Recovery Plan (DRP) is essential when there’s a need for consistent data backups, business continuity solutions, and well-defined response protocols.
Deloitte said, “Fintech companies having their DRP plan ready resumed operations within just hours of cyberattack.”
Disaster recovery is a great way to avoid financial crises and reduce downtime. Make sure your financial application, like accounting software or a GST filing solution, is integrated with DRPs. Here you need to know why DRP is counted among mandatory security features in financial software.
- DRP regularly backups your financial data, ensuring quick recovery in case of natural disasters, cyberattacks, or software failure.
- It minimizes downtime, getting your system back online and ensuring business continuity.
- Safeguards your business reputation with quick recovery.
5. Detect Intrusions Before They Enter Your Network: Get Firewalls!
Fintech networks are often exposed to intrusions; a single loophole and your software is attacked. Firewalls detect intrusions trying to enter your network and defend your software against malicious activity before it compromises confidential details. It constantly tracks and examines the network traffic and blocks sceptical IPTs to prevent fraudulent data access.
Cisco quoted, “Financial software with firewall, i.e. Intrusion Detection and Prevention System (IDPS) in place are susceptible to 60% fewer data attacks.”
While considering the fintech software, here’s why you should choose the one with a firewall.
- Firewalls block unwanted access to the network reducing security threats.
- IDPS detects and blocks common threats like malware, phishing attempts, denial-of-service attacks, etc., before they reach your financial ecosystem.
- It monitors network traffic closely and notifies the cyber officials about the malicious activity.
Read More: 7 Points to Consider before Buying any Accounting Software
Let’s Conclude!
The financial ecosystem is prone to hacking attempts. In this digital realm, trust becomes crucial, and fintech can earn it only through tamperproof security protocols. It doesn’t matter if you are a growing business entity or a freelancer; choosing financial software without having the above security checklist can cause you heavy losses.
Right from data security features to network security, the financial application, which might be accounting, billing, or GST filing, must satisfy the given checklist. Want to know more about security features in financial software? Connect to us right away!
If you are looking for a trusted and highly secure accounting or compliance solution, Munim is the best choice! Get started today!
FAQs on Security Features in Financial Software!
1. Why is security crucial in financial software?
Implementing security features in financial software integrates reliability and prevents loss.
2. What is the main purpose of security for financial apps?
The primary goal of securing your financial apps is to protect customer details and confidential information from being hacked.
3. What are financial data security features?
Financial data security features refer to tools that secure your financial data from being exposed to unauthorized access.
4. What are the security tips to protect data in fintechs?
- Don’t connect to the public network
- Use heightened security protocols
- Perform regular security audits
