A Practical Guide for Fintech Software Development: Cutting Costs and Staying Secure
Make no mistake: attacks on fintech are on the rise, and the best way to deal with them is to prepare for the worst from the outset
Effective fintech software development must be profitable. And to be profitable, it must be cost-effective and secure. Both go hand in hand.
If you’re a fintech startup founder — or preparing to develop a unique solution — we’ve put together some guidance and tips to get you started. And to keep things simple, we’ve broken it down into security and costs.
Building a Security Framework That’s as Secure as It Is Lean
Good fintech development services begin with security. They can’t be an afterthought. The good news is that the tools for fintech security are already there. By using them to protect customer data, transaction logs, and other sensitive information — and building them into your software from day one — you can create an almost impenetrable defensive wall.
We call it zero-trust architecture. Treat every user, device, and API as a threat. Give no one and nothing the benefit of the doubt. The open-source tool Istio, for example, can contain breaches before they destroy your software’s credibility and reputation.
But above all, get the basics of cybersecurity right from the moment you start working on fintech software solutions.
Nail the Basics
This is an open goal for any fintech software developer. Don’t overcomplicate things. Embrace the basics and reduce risk with relative ease.
- Multi-factor authentication (MFA): Force every user to sign up for MFA. It should be a non-negotiable condition of participation. This goes for all your admin panels, APIs, and apps. There’s more good news, however. Free tools such as Authelia make this a breeze.
- Regular Patching: Patching should be automated. Take the human error (and forgetfulness) out of the situation, and outdated software won’t leave your fintech solution vulnerable.
- Data Encryption: The rule here is simple: encrypt everything — in transit and at rest. Keep one eye on AES-256 standards throughout the development process. It’s also a good idea to weave PCI-DSS (Payment Card Industry Data Security Standard) into your architecture from day one. Retrofits can be very expensive. And highly disruptive!
Prepare for the Worst, Mitigate the Inevitable
You could have the most secure fintech app in existence. Wait long enough, and a threat will eventually break through its defenses. Even providing regular updates and patches may not be enough to repel marauding online invaders.
So, rather than waiting for the worst to happen, get ready for it. Create an incident response plan that includes measures for detection, containment, eradication, and recovery. And make sure you and your infrastructure learn from the experience!
Bake In Compliance from the Outset
Regulatory compliance is fluid. Laws change, and so should your approach to fintech software development.
Keep your finger on the pulse when it comes to frameworks such as GDPR, CCPA, and guidelines issued by the NIST. And bake their guidelines into your infrastructure with the help of shared compliance. Piggybacking the likes of Stripe and PayPal can save you a huge amount of time and money.
Monitor and Evolve
Cyberthreats are like biological viruses. When they start dying out or fail to find victims, they evolve. Your infrastructure must also evolve to survive.
Set up an automated monitoring system with real-time dashboards to stay ahead of potential attacks and breaches. And don’t lose hope if things go wrong. Cyberthreats offer an opportunity to learn. And learning is the mother of iteration!
Cutting Fintech App Development Costs
Web and mobile app development costs aren’t for the faint of heart. The competition is now greater than ever. To give your startup a chance of sustained success, you’re going to need considerably deep pockets.
But let’s not throw in the towel too quickly. There are some proven ways to keep a lid on fintech development costs — whether you’re working on MVP applications or established mobile apps.
Optimize Your Infrastructure
There are some significant pricing discrepancies between cloud and infrastructure providers. Take some time to shop around.
The likes of AWS Lightsail and Google Cloud Run are packed with functionality and won’t break the bank. And features such as encryption-at-rest can keep your operational costs low moving forward.
That’s not all. You can further reduce the cost to build a fintech app with auto-scaling and reserved instances. Based on demand, servers are “rested” and activated automatically. After all, what’s the point of paying for the use of a server overnight when no one is using your app or API?
Open Your Heart to Open-Source
The world’s top developers have already done a lot of the hard work for you. It might surprise you to learn that OSS (Open Source Software) is powering the vast majority of fintech solutions. Embrace it. Make it your own. Reap the rewards.
So what’s being used right now? Well, Apache Kafka powers real-time payments. React Native lays the foundations for countless cross-platform apps. If you can successfully utilize these ready-made offerings, you can slash your annual licensing fees.
Create a Lean, Mean Development Team
The term “too many cooks spoil the broth” springs to mind. Particularly if you’re using OSS, there’s a real opportunity to trim the fat from your workforce. Some of the world’s best fintech applications were delivered by teams with single-digit participants.
In-house, full-stack devs and a DevSecOps specialist make sense. However, you can enlist the services of fractional experts from online freelancer platforms. After all, fintech development services must adhere to strict compliance rules. Don’t take chances, but don’t commit to long-term employee contracts, either.
Fintech Software Development Is More Secure and Cost-Effective When Experts Lead the Way
Fintech software development delivers exceptional results when you’re in full control of costs and security measures. That said, you don’t have to go it alone. A fintech app development company such as DigiNeat can manage projects from concept to release. Want to learn more?