The digital age has ushered in a new era of technological innovation and advancement. In the financial sector, this has taken the form of fintech – or financial technology companies.
One of the most important aspects of fintech is data security. Data security is the process of protecting electronic information by mitigating information risks and vulnerabilities. Data security is critical for fintech, as they handle a large amount of sensitive financial data.
There are numerous best practices that fintech can follow to protect their data. In this post we'll take a look at 3 of them:
Most companies today rely on cloud providers to some extent to store and manage their data. Cloud providers, such as AWS, Google and Microsoft, offer a number of advantages when it comes to security, including:
Overall, the security benefits offered by cloud providers can be a major advantage for companies of all sizes. By choosing a reputable cloud provider, you can help to ensure that your data is well-protected against a variety of threats.
The importance of data security for fintech cannot be overstated. One of the most important data security measures that fintech can take is using two-factor authentication, or 2FA for short.
Two-factor authentication is a process in which a user provides two pieces of information to verify their identity. This can be something as simple as a username and password, or it can be something more complex, such as a one-time code that is sent to the user's phone.
This protocol is important for fintech because it adds an extra layer of security. Even if someone manages to steal a user's login credentials, they would not be able to access the user's account without also having the one-time code.
Overall, two-factor authentication is a must for fintech because it helps to protect your account and personal information from being compromised, and it can help to prevent fraud.
One of the most important aspects of data security when using financial data is Strong Customer Authentication. Strong Customer Authentication (SCA) is the process of verifying the identity of customers in order to protect them from fraud. SCA is required by the European Union's Second Payment Services Directive (PSD2), which came into effect in January 2018.
Banks are key players in the fintech sector, and they are well equipped to meet the SCA requirements of PSD2. They have a wealth of experience in authentication, and they already have systems in place to verify the identities of their customers.
Fintech companies should work with banks to ensure that they are compliant with PSD2's SCA requirements. By working with banks, fintech companies can ensure that their data is secure and that their customers are protected from fraud.
Data security is of the utmost importance for any fintech company. In an increasingly digital world, fintech companies hold a vast amount of sensitive customer data. This data must be properly protected in order to maintain customer trust and prevent data breaches.
There are a number of data security protocols that fintech companies can implement to keep customer data safe. These include using 2FA, esteemed cloud providers, and leveraging Strong-Customer-Authentication. By taking these steps, amongst others, fintech companies can ensure that customer data is protected and secure.
Interested in reading more about the measures we take at Moneye? Check out our Security-page here.
Moneye helps companies run their finances more efficiently by combining real-time insights into all of their bank accounts and smart automation. Spend 50% less time each day managing your finances with Moneye. Learn all about Moneye.
