At the time of significant disruption for the financial services industry, one of the sector forecasted to be worth $300 billion by the year 2022, institutions are facing important decisions when it comes to the digital transformation. Amidst the ever growing customer expectations and experience and the need to compete with the changes happening around the regulatory landscape, fintech companies are going through an increased pressure to ensure innovation is thoroughly implemented. And loss to do so comes with a significant cost that of security breaches and exposure new vulnerabilities. Especially form the AI and biometric authentication to Robotic Process Automation, the growing adoption of the technology among the financial services industry is maximizing the volume of customer data at risk.
To handle the risks carry both the internal and external challenges for fintechs. On the inside the main challenges are centered on the cyber skills, knowledge and expertise and on the outside it is the coordination with regulation is in demand. And managing this ever increasing hunger for innovation and growth with tough security and risk management processes is absolutely crucial. Cyber treats continue to worsen and diversify with every new digital product coming out in the market and the services carry a continuously evolving set of risks.
Due to the alleged value of the information held, the financial services industry is one of the primary targets for data breaches. This is the reason why many financial service institutions have turned to the cloud as a solution for their IT infrastructure. Although, migrating to the cloud raises the attack surface of applications. The importance of meeting security and defiance necessities can’t be over viewed in the rush for developing new applications directly in the cloud or evolving analytics as a service or automation as a service capabilities. Deliberately aligning the digital conveyance and security is one of the major complex encounters facing financial services businesses and many of them are spiraling their attention to Balanced Development Automation (BDA). To confirm the triumph and reasonable authority in the long run, fintechs need to generate interactions between their DevOps, security, and business teams. This is where BDA originates in because it aligns the DevOps with safety, confirming the final term is parched into the software expansion course. It performances as a guide over every step of software development, ensuring that security checks are built into the procedure from the establishment, and eventually allowing DevOps teams to convey the secure products.
There are three steps to follow in this process-
- Security should be well equipped with the development team with at most awareness of what is necessary from a safety point of view. It also applies to the risk and compliance. Developers should know the outset of what the parameters will be and what factors them into their work from the beginning.
- The next step of inspection of security metrics based on the current controls and emerging risks. The solutions to this issue might be creating a set of new controls, but it has to be developed with a deeper understanding of the impact based on the cost and business exposure. In the end, it will be a business decision to regulate the apt risk onset.
- The last stage of the process of the BDA process dwells with the governance at an audit and board level. So the metrics collected from the first two stages are turned into the KPIs and are measured at the same level which are based on the main business protocols around the compliance, resilience, reputation, cost and much more.
In the end, the success and the failure of the fintechs of the current day can bend on how they balance the adaptation of the new techs while maintaining the privacy of the clients and securing their data and with this adding in security, compliance and risk priorities will give the recipe for success.