The significance of establishing a reliable cybersecurity workflow in fintech companies

Importance of reliable cybersecurity workflow : Introduction

In recent years, cybersecurity has become a crucial concern in the business world, particularly as the traditional corporate structure has been disrupted. Organizations across various industries must implement a strong cybersecurity framework and assessment process to maintain their security. The financial services sector is particularly susceptible to information theft due to the sensitive nature of the information they handle, both for businesses and individuals. With the increasing complexities and technical dependencies in the fintech ecosystem, data is becoming more vulnerable to security breaches.

Over the last four years, funding into Indian Fintech industry has grown by 26% and the sector is expected to be worth $1 trillion and generate $200 billion in revenue by 2023. Thus, the importance of cybersecurity in fintech is greater than ever before in 2023. Here are several reasons why:

  • Increased digital adoption:

    With the continued growth of digital banking, fintech companies are handling more sensitive customer data than ever before. This data is a prime target for cybercriminals, making it essential for fintech companies to invest in reliable cybersecurity measures.

  • Regulatory pressure:

    Governments around the world are imposing stricter regulations on the fintech industry to protect consumers from cybercrime. Companies that fail to meet these standards face significant financial penalties and reputational damage.

  • Growing threat landscape:

    The threat of cyberattacks continues to grow, with new and more sophisticated threats emerging all the time. Fintech companies must stay ahead of these threats by investing in the latest cybersecurity technologies and practices.

  • Protecting customer trust:

    Fintech companies depend on their customers’ trust to do business. If a company experiences a cybersecurity breach, this trust can be irreparably damaged, causing significant harm to the company’s reputation and financial stability.

  • Rising Cyber Attacks:

    According to a 2019 report, outdated web applications, APIs, and subdomains were a major concern for almost 100% of fintech companies in terms of privacy, security, and compliance. In 2020, the Indian fintech sector saw over 60% of phishing activities, outpacing the healthcare sector. This is because cybercriminals frequently target fintech firms for financial gain. Cybercrime in the fintech industry not only results in financial fraud, but also the destruction of personal and financial data, embezzlement, reduced employee productivity, and more.

A lack of security technology and controls often prevents fintech companies from recovering from cyber-attacks and makes them unable to recover. Under Section 43A of the Indian IT Act 2000, data breaches can also result in fintech firms being liable for damages if they fail to protect sensitive data. Fintech companies must take a proactive approach to cybersecurity to avoid damaging their reputations long-term and reduce their digital risks.

 

Potential Benefits of a reliable cybersecurity workflow

Some of the benefits of implementing a reliable cybersecurity workflow include:

  • Compliance:
    Leading SaaS companies to automate compliance with data security standards such as SOC2, ISO 27001, and PCI-DSS. They also protect intellectual property through systematic risk governance. This comprehensive approach helps identify theft attempts, malware, and other sophisticated threats, preventing fines, penalties, and social engineering attacks while safeguarding confidential data.
  • Enhanced Customer Trust: A reliable cybersecurity workflow can contribute to financial inclusion and the growth of SMEs and startups. It enables a privacy-first approach, resulting in increased customer trust. By incorporating reliable¬† information security solutions, customers can be confident that their sensitive data is protected from breaches, identity theft, ransomware attacks, and more.
  • Increased Productivity: When the fintech industry implements strong security standards, such as improved firewalls, virus scanning, and automated backups, employees experience higher levels of productivity. This is because they are able to work with less stress and without having to spend extra time on security tasks.

 

Conclusion:

Cybersecurity is a critical concern in the financial technology (fintech) industry, security threats will continue to impact the fintech sector, but it’s important to stay vigilant and monitor these threats to succeed in this growing marketplace. In conclusion, cybersecurity is an essential investment for fintech companies in 2023. By investing in the latest technologies and practices, companies can protect their customers’ sensitive information and financial transactions from cybercriminals. Additionally, by demonstrating a commitment to cybersecurity, fintech companies can build trust with their customers and secure their long-term success.

A reliable cybersecurity workflow implementation can help elevate the overall cybersecurity state in India, protecting data and preventing financial fraud in the fintech sector. ASPIA Infotech extends its services to enterprises round the globe to help establish a secure and reliable cybersecurity workflow, visit us here to schedule a demo with us to show case how ASPIA helps streamline and establish reliable cybersecurity workflow for your enterprise.

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