Fintech companies deal with the financial data of customers as per Bahaa Abdul Hussein. This data is confidential and needs to be secured and safeguarded. Data privacy and security are very important factors in today’s world. In a world full of risks where cyber criminals thrive, fintech firms have a great challenge when it comes to safeguarding customer information.
Data privacy and security in Fintech
The arrival of new technologies helped fintech companies grow fast. The pandemic helped fintech gain a nearly 72% increase in its service use. With more and more customers working with fintech firms, a major issue that has come up is data security and privacy. Customers need to share their personal and financial data with fintech firms.
There is always a concern on the use of this data and its security. There are other threats online including cyber criminals. Fintech firms need to deal with all these challenges and assure their customers that their information is safeguarded effectively.
Security and privacy issues
There are certain issues related to data privacy and security that are key concern in fintech.
- Phishing is a major problem with customers sharing their user IDs and passwords on fake websites. 74% businesses in the US have faced some kind of phishing incident.
- Data breaches are a major problem with hackers getting into databases and stealing information. Since financial information of customers is stores, such a data breach can be very expensive.
- Scams happen frequently and customers fall prey to them regularly.
What fintech firms can do?
There are two levels at which fintech firms need to work. At the first level, they need to ramp up their security systems. They need to ensure that all possible risks and threats are identified. Mitigation plans for the risks need to be worked out. Robust security systems need to be deployed to prevent these security issues.
Fintech firms must also educate their customers and people at large. The concept of phishing, scams, how they are done, and how not to fall victim must be highlighted. Fintech firms need to work with their customers to ensure that security issues don’t pose a risk to their business.
Conclusion
Cyber threats surround us from all sides. Advances in security technology have not fully stopped cyber criminals. In such a scenario, fintech businesses need to invest on data privacy and security. Following the best systems for data security would ensure they safeguard customer information effectively. Doing so would help them offer a better customer experience.
The blog has been authored by Bahaa Abdul Hussein and has been published by the editorial board of fintek diary. For more information, please visit, www.fintekdiary.com
