How to Develop a Secure FinTech App?

Physical banks have been trusted more with money, valuables, and information. Transforming the entire traditional system into a digital operation is no less than a bigger leap. 

Just one major security lapse can bring a FinTech project to a halt instantly. That’s why prioritizing Fintech app security solutions is crucial when building a successful app. Security isn’t just a protective layer; it’s an asset that builds customer trust and long-term growth. 

Basic Security Principles in FinTech App Development 

The core of FinTech application security is built on three key pillars: 

1. Awareness: 

During development, ask: 

• How secure is the environment? 

• Who should be granted access to the application and its sensitive data? 

• What measures safeguard customer information and assets? 

• Are compliance requirements being met? 

2. Service Architecture: 

Key areas include: 

• Platform operations 

• Server/database hosting 

• Access management 

• Secure in-house communication 

• Compliance requirements 

• Secure data transmission (encrypted) 

• Payment integrations 

3. Data Protection Controls: 

Controls to protect sensitive financial data: 

• Role-based authorization and revocable access 

• Workstation and mobile device protection (encryption, firewalls, locks) 

• Multi-Factor Authentication (MFA) 

• Device inventory controls (lost/stolen devices) 
• Alignment with regulatory frameworks 
  
  

What are the security challenges that FinTech companies face? 

The financial sector is filled with sensitive data about individuals and enterprises. With the FinTech evolution, the data are now available in digital formats, thus making it easier to analyze and generate analytics. But, in addition to this, simplicity has welcomed a lot of data breaches, making FinTech highly susceptible to threats.  

The major challenge for FinTech is data ubiquity and data security with the increasing amount of online services. Enterprises accumulate a lot of customers’ data with the increase of online and phone banking services. Analyzing this gathered data generates insights for identifying the buying patterns, acquisition, and retention strategies. Protecting such a huge amount of data and providing to the customers in a secured manner is very challenging. Another possible problem that you might experience is with managing the customer access to multiple services and solutions. This task is very perplexing.  

While busy in providing a seamless omnichannel experience for users, digital identity management of individuals and enterprises becomes a major challenge for the FinTech companies. Though digital identities have reduced the reliance on conventional methods and also has added one level-up security, cloning of these identities would lead to amplified risks. 

Though integration of APIs provides seamless sharing of data with various enterprise applications, it has welcomed a lot of prospects for malware propagation. One of the imminent threats that takes place with the increased integration of systems is the cross-platform malware contamination. 

What are the data breaches that have happened in recent years? 

Recent high-profile breaches highlight why strong FinTech security is no longer optional. 

What FinTech App Security Solutions Ensure End-to-End Protection? 

To ensure the FinTech app security, you will need to incorporate some important phases in every step of the development process. 

1. Build infrastructure security

The foundation of FinTech app security lies in a resilient infrastructure. Modern FinTechs often adopt multi-cloud or hybrid-cloud architectures, ensuring that no single provider becomes a single point of failure. Security orchestration across providers helps maintain consistent protection. 

To protect sensitive data, many are leveraging confidential computing and trusted execution environments (TEEs) such as AWS Nitro Enclaves or Azure Confidential VMs, ensuring data remains encrypted even during processing. 

Rather than relying solely on perimeter security or VPNs, organizations are now adopting Zero Trust Network Architecture (ZTNA), where no user or device is trusted by default. Compliance is critical, so ensure alignment with the latest standards such as SOC 2 Type II, PCI DSS 4.0, FedRAMP, and CSA STAR, depending on your market. 

2. Secure Application Logic 

Security must be baked into the very logic of your application. Apply privacy-by-design and data minimization principles: avoid storing card data directly; instead, use tokenization or PCI-compliant gateways. Continuous threat modelling integrated into DevSecOps pipelines helps identify risks during development rather than after release. 

Relying on complex passwords alone is no longer enough to protect financial applications. Instead, move toward passwordless authentication (biometrics, passkeys) combined with modern MFA such as hardware tokens (FIDO2), authenticator apps, or push-based verification. Augment logging with behavioural analytics to detect anomalies in user behaviour beyond static records, enabling proactive fraud detection. 

3. Secure Code 

Code is the first line of defence. Modern FinTechs integrate static (SAST) and dynamic (DAST) application security testing directly into CI/CD pipelines, ensuring vulnerabilities are detected early. Applications must be protected against advanced threats such as XSS, CSRF, SQL injection, and deserialization attacks. 

Adopt secure coding frameworks and libraries that are actively maintained and ensure code signing to validate the authenticity and integrity of updates. Strong input validation remains essential to guard against malicious payloads, while access controls ensure only authorized components interact with sensitive data. 

4. Testing 

Testing in FinTech has evolved from occasional penetration tests to continuous, integrated security assurance. A shift-left approach means embedding security tests as early as possible in the development cycle. 

Beyond functional and database testing, incorporate: 

• Automated vulnerability scanning 

• Fuzz testing for edge cases 

• Red teaming exercises to simulate real-world attackers 

• RASP (Runtime Application Self-Protection) for live monitoring 

Additionally, conduct incident simulations and disaster recovery drills to ensure resilience when, not if, breaches occur. 

5. Web-Server Security 

Web servers remain high-value targets. Modern defenses go beyond SSL certificates to include: 

• Web Application Firewalls (WAFs) 

• Content Security Policies (CSPs) 

• TLS 1.3 (replacing older protocols) 

While VPNs were once standard, many FinTechs are migrating toward ZTNA or SASE (Secure Access Service Edge) for secure remote access. In containerized environments (e.g., Kubernetes), enforce automated patch management and regular scans for container vulnerabilities.  

6. Securing Daily Workflow 

Securing an app also requires securing the people and processes around it. Use Identity and Access Management (IAM) with least privilege and role-based access control (RBAC) enforced by automation. 

Go beyond NDAs, train employees through security awareness programs to resist phishing and social engineering. Ensure immutable, regularly tested backups for resilience, and demonstrate compliance with ISO/IEC 27001:2022, SOC 2, or PCI DSS 4.0. Finally, implement Security Information and Event Management (SIEM) tools for real-time monitoring and alerting of potential breaches. 

7. Ensuring API Security 

In many cases, APIs remain one of the most vulnerable points in FinTech security. 

• OAuth 2.0 and OpenID Connect for authentication/authorization 

• API gateways with throttling, rate-limiting, and anomaly detection 

• Automated security testing tools to continuously validate endpoints 

• Mutual TLS (mTLS) for secure communications 

• Short-lived JWT tokens with refresh mechanisms for secure session handling 

This ensures APIs remain hardened even as integrations grow. 

8. Authentication and Authorization 

Move beyond outdated authentication models. Adopt passwordless authentication via biometrics, FIDO2/WebAuthn, or device-based identity. Strengthen security by moving beyond SMS 2FA to more reliable MFA options such as authenticator apps, hardware keys, or push-based verification. Authorization should evolve from simple role-based models to context-aware, risk-based authentication and attribute-based access control (ABAC) for granular permissions. 

9. Using Data Encryption Techniques 

Encryption is no longer optional; it must be everywhere. 

• End-to-End Encryption (E2EE) for sensitive communications 

• TLS 1.3 for data in transit 

• Encryption at rest using HSMs or cloud KMS services 

• Begin preparing for quantum-resistant cryptography to ensure long-term resilience 

AES remains a strong standard, but forward-thinking FinTechs are already evaluating post-quantum approaches. 

10. Payment Blocking Feature 

Payment platforms need to detect and block fraud instantly to safeguard transactions. Enhance security with: 

• AI/ML-driven fraud detection engines monitoring behavioural patterns and transaction anomalies 

• Adaptive fraud prevention that flags or suspends suspicious activity automatically 

• Compliance with AML (Anti-Money Laundering) and KYC (Know Your Customer) regulations via automated workflows 

This layered defence ensures fraudulent transactions are caught before they impact users or reputation. 

Conclusion 

FinTech applications house a lot of sensitive data. While securing FinTech applications is challenging, investing in experienced professionals ensures a robust and compliant end solution.  

FinTech software development should align with the security compliance. Hiring FinTech QA specialists across every stage of development helps deliver a thoroughly tested, secure, and reliable product. 

Don’t Let Your FinTech App Get Attacked 

Your FinTech app is more than just technology, it’s where customers trust you with their money, identity, and data. One breach could damage your reputation, invite regulatory penalties, and stall business growth. 

With the right security strategies in place, you don’t just protect your app, you protect customer trust and your bottom line. 

Talk to our security experts today and find out how you can make app security your competitive advantage.