Cybersecurity trends in the Fintech industry 

In 2023, a wave of innovation security best practices is arising. The fintech industry deals with sensitive and confedential information, finding itself at the forefront of technical innovation. Playing a crucial role in transforming how the industry grows and manages developments, it is crucial to keep in mind cybersecurity. With the introduction of technologies like blockchain, artificial intelligence and Internet of Things, companies need to keep an eye on data security to protect it from external threats.  

Cybersecurity 

Cybersecurity wants to improve the safety of financial services through technological innovation. With the introduction of technologies such as cloud computing, it allows companies to protect customer data and ensures that they comply with all provisions of privacy laws. Here are some upcoming technologies that can support you with this in 2023: 

Blockchain 

Potential applications for blockchain include transparency of data exchanges, collaboration and control of data, decentralised finance, management of supply chains, traditional finance, data privacy, and more. 

• In the most general sense, a blockchain is a system for recording information; the information in a blockchain is stored in such a way that makes it difficult or impossible to change, hack, or cheat the system. 

This technology has longevity in mind, as it has tremendous flexibility and the ability to disrupt almost every industry and sector of the market. It has the potential to touch every company’s accounting, corporate governance, and multiple departments. But it may also profoundly impact sectors such as the banking sector, food industry, healthcare and medical sector and manufacturing. 

Artificial Intelligence (AI) 

Artificial intelligence (AI) refers to the simulation of human intelligence by software-coded heuristics. Nowadays this code is prevalent in everything from cloud-based, enterprise applications to consumer apps and even embedded in firmware. 

Customers demand more and more a peronalised services and products tailored to their challenges and needs. Hyperpersonalisation and AI are rising tools to keep up with this demand, where finTech companies are using the power of algorithms to communicate with their customers. Artificial intelligence allows them to personalise their business offer to the individual needs of their customers. 

It also allows for the knowledge to grow, as financial management is becoming smarter. When dealing with finances, the following are some of the advantages: 

• Increased transparency: data collection allows for improvement and predictions of financial risk, and customers know exactly what has been factored into each spending decision and why.  
• Less human error: automated solutions save hours of manual management and drastically reduce errors. 
• Financial optimisation: Fintech goes beyond automation to turn huge amounts of data into valuable information for budgeting, identify savings opportunities and make better decisions. 

AI is continuously evolving to benefit many different industries, for example: from forecasting raw material availability and predicting future material costs, allowing for changes at every stage of the manufacturing process in the industrial sector; to improve efficiency, enhance quality control, and provide possible chemical combinations and predict their effectiveness for specific purposes, leading to innovation in the chemical sector.  

Internet of Things (IoT) 

The Internet of Things (IoT) is a name for the aggregate collection of network-enabled devices, excluding traditional computers like laptops and servers. For example: 

• Wi-Fi connections 
• Bluetooth connections, and  
• Near-field communication (NFC) 

The IoT includes “smart” devices, such as refrigerators and thermostats; infrastructure security systems; computer peripherals, such as webcams and printers; routers. 

The Internet of Things promises to transform a wide range of fields. Connected devices can help professionals in multiple industries to monitor their performance, products, inside and outside the field. Computers can then evaluate the data to help professionals adjust products, services and improve client and project outcomes. 

The use of smart devices will also likely mean a competitive advantage for businesses that use them strategically. For instance, by tracking data about energy use and inventory levels, a firm can significantly reduce its overall costs. Connectivity may also help companies market to consumers more effectively. 

Why is cybersecurity essential? 

Cybersecurity is crucial in fintech to protect sensitive data, prevent cyber attacks, comply with regulations, and maintain customer trust: 

• Fintech companies handle sensitive data: Fintech companies process a huge amount of data, including the personal and financial information of their customers. Robust cyber security measures are needed to protect this information from theft, fraud or misuse.  
• Fintech companies operate online: making them vulnerable to cyber threats such as phishing attacks, malware and ransomware. A cyber attack on a fintech company can have a significant impact on its operations, reputation and financial stability.   
• Fintech companies are subject to regulations: regulations that require them to implement strong cyber security measures to protect their customers’ information. This is necessary to avoid legal and financial penalties.   
• Fintech companies operate on trust: Fintech companies rely heavily on customer trust for their success. Data breaches or security incidents can undermine this trust and lead to loss of customers and reputation. 

With FI Group as your reliable partner, you can navigate the evolving landscape of R&D funding and fully leverage the available incentive measures. 

Yvette Poumpalova