The industry’s focus on finance and business transactions makes it incredibly important to ensure that the processes that go through on a daily basis are safe and secure. Which is why the main challenge of the industry is data security. With the industry being taken to the online space, traditional security guards, CCTVs, and heavily-guarded vaults must now be replaced with cybersecurity techniques that must not only protect people’s money, but their personal information too.
So far solutions have circled around ideas, such as two-factor authentication (where your devices are linked to provide a stronger wall of authentication before you have access to money and data), biometric authentication (fingerprints, facial recognition, etc.), real-time alerts (offering immediate response from you in the event of a cybercrime attempt), data encryption, blockchain technology, and more.
Apart from that pressing issue, Fintech is faced with threats relating to compliance with government regulations (the online space is hard to be bound by geographical location), lack of expertise, AI and big data, blockchain technology, personalized services, etc.