As fintech becomes more innovative, more cybersecurity demands need to be met in order to ensure the delivery of sound and safe services.
FREMONT, CA: Financial technology, or fintech, has experienced phenomenal growth in the last few years. Although it provides disruptive and innovative financial technology services to the population, enterprises implementing fintech need to address the new risk factors that are associated with it. Enterprises that implement fintech solutions face cyber risk from integration issues, including compatibility and legacy technologies. Know more here.
The gap between technology innovation and regulation is severe in fintech, as the regulatory landscape has to try hard and cope with the pace at which technology innovation is taking place. With this gap increasing, there is something enterprises can do. Regulators and enterprises should have a proactive, ongoing dialog that can help provide regulators with an improved understanding of the technology. This will give insights to regulators for making new regulations carefully crafted not to harm the fintech innovation ecosystem. This conversation will provide value to fintech solution providers in terms of understanding key issues, including the need for consumer protection and cybersecurity.
With many companies offering fintech solutions, it is statistically inevitable that some of them will fall short on security. One-step that would help enterprises in this context is to step back from the unwanted rush to hit the market. Enterprises can take extra time to do extensive testing before the launch of any solution. Apart from this, the combination of machine learning and big data has enormous promise for fintech to offer. This interplay will provide some powerful techniques to ensure cybersecurity in the coming years.
Expanding access to financial services is undoubtedly a good thing. It is a crucial goal that has motivated many companies and even the governments to advance their financial inclusion. For the success in enhancing access to financial services to be celebrated, it is also essential to address the cybersecurity challenges that will accompany the success.
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