How to resolve your banking security with software development

How to resolve your banking security with software development

Digital transformation has revolutionized banking but, at the same time, has given rise to new challenges in terms of banking security. New customer demands regarding the speed of service, simpler and more remote operations, and greater security and identity protection have awakened the need to develop new control and security mechanisms.

As technology has advanced, so have the methods for breaching bank security mechanisms. For this reason, sectors such as fintech and other software development companies have focused on creating financial solutions that offer the best security standards, both for the customer and financial institutions.

Challenges facing banking security in 2021

Successful integration of fintech and financial institutions.

Customers increasingly require services that offer speed, are frictionless (that flow in the best possible way), and ensure the integrity of the data they share. For their part, banking institutions, seeking to satisfy user requirements, are increasingly forming alliances with fintechs.

The integration of banking and fintech solutions has created a new challenge in terms of cybersecurity. The more players involved in a financial transaction, the more sectors share customer information. Thus, both must work together to ensure data integrity and privacy.

Achieving a balance between the development of financial solutions and banking security methods.

The development of digital solutions for the banking area is a sector that is proliferating. Fintech has proven to be an area where creativity and a focus on customer service are a priority. But this development encounters a challenge when it comes to security.

Banking security methods do not grow and are not carried out at the same speed, which is why it is necessary to strike a balance between the two to offer the customer what he requires as a final product: a solution that gives him the ideal speed when making a transaction and the exact security of his information.

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Customer education as a critical factor in controlling phishing

Phishing remains one of the biggest problems facing banking security. As solutions grow, so does digital crime. For this reason, educating the user about the risks they run and making them a proactive actor in safeguarding their security is very important. By creating awareness of the danger they may run, the customer will assume a responsible attitude and become the best ally of banking security.

Minimizing the dangers of ransomware

The theft and subsequent ransomware of banking information are some of the biggest threats in recent times. Identity theft through phishing is one way that ransomware frequently uses to subsequently make use of the information in any way it wishes. At this point, the union of financial institutions and fintechs is essential to find solutions andconfront crime.                     
Digital onboarding or online customer identification process seeks to strengthen security in this area to minimize identity theft and make customer onboarding a safe space.

Digital onboarding and banking security

The growth of online banking and neobanks has been two of the most important reasons for digital onboarding to gain strength as one of the most relevant areas when discussing banking security.

Digital onboarding is defined as the process of onboarding customers in a non-face-to-face manner through different online channels. It is a revolutionary technology in the financial area, and its development is based on the highest security standards.

Its implementation is subject, in most countries, to the legal regulations of the banking sector regarding customer identification. This is another reason why digital onboarding has been increasingly focused on securely guaranteeing its results.

The most crucial security card at stake in digital onboarding is the use of biometric technology. This technology is based on recognizing traits, both physical and behavioral when identifying a user.

Benefits of digital onboarding in security

The benefits of digital onboarding in terms of security are, among others:

    • It allows detecting fraud or identity theft in a faster and easier way because it focuses much more carefully on verifying the documentation and consistency of the data collected.
    • Using the video call as a means of authentication allows preserving these recordings as proof and support of the user’s identity in the future.
    • Increased security throughout the entire chain of custody of the information.
    • The separation between user identification and authentication reinforces security at all times. Not only does it incorporate the client, but it also integrates the authentication mechanism that allows for a posteriori verification of prior identification when performing transactions.

For Hypernova Labs, security is a priority in developing each of the solutions offered to the financial sector. We understand that the future credibility of the client depends on the security provided by each application. For this reason, we are constantly updating, and our development remains at the forefront of cybersecurity and banking security. Don’t fear the integrity of your data or your customers. Have a coffee with us and discover why we are your best solution.