FinTech Challenges and Opportunities: Authentication, App Security, and Beyond

FinTech Challenges

Digital innovations in financial technology or the Fintech industry are revolutionising how banks, financial organisations, and people manage their finances. Modern advances have drastically altered how people have been engaging with businesses in the past few years. 

As per a study conducted by BCG and FICCI, the sector will likely achieve a valuation of $150-160 billion by 2025. There are over 2,100 FinTech companies in the country, of which 67% have been set up in the past five years. While strategies will evolve differently for companies, Fintech startups will need to focus on one key area to drive growth in this environment: implementing the right technology. 

Implementing the Right Technology

Financial institutions require the right technologies to become digital-first. The way they engage users must involve technology that seamlessly integrates into user journeys without causing any unnecessary friction. 

  • 2-Factor Authentication

Fintech institutions should look beyond the basic username-password authentication of apps to amp up their security. One of the most widely used mechanisms is two-factor authentication. It is a one-time code either sent via SMS or email to ensure the security of accounts and their owners. In addition, a push notification system, a process that allows customers to verify their identity with a single touch, can also be implemented. 

Related Article : SMS OTP 2FA Remains #1 Choice for Fintech and Blockchain Companies

  • Defining Permission Structure

Fintech apps can be complex and have many features that users might not be able to gain access to. Therefore, a proper system is needed to set up roles and grant permission accordingly. Developers can also take the aid of systems like Role-Based Access Control (RBAC) and Access Control List (ACL).

  • Using Secure App Features

Security professionals should be observant and stop suspicious transactions found in their tracks. All transactions can be labelled into three broad categories of threats: low, medium, and high. Suppose a transaction of the high threat level category is being initiated. In that case, the app system should automatically pause the activity and notify the company’s technical team that should analyse logs.

  • Constant Tracking

Marketing automation tools help track communications across all touchpoints and channels, be it opening an email, clicking an SMS link or other user behaviour such as starting an account, downloading content from your website, or visiting any web pages. Tracking helps specify who to contact and what sequence and type of communication will be the most successful. 

  • Focusing on Better CX

In today’s time, simply enhancing functionality isn’t enough. Customer experience will also need to be enhanced by leveraging technology and focusing on the user. Marketing automation has made customer journey mapping easy. While Fintech applications provide timely information on account balances, service renewals, and bill payments, Fintechs will need to predict customer needs in the future. They will need to leverage omnichannel marketing and real-time data to provide customised solutions to each user and strengthen their brand relationship.

A Bright Future for Fintech

Fintechs have grown exponentially in the past few years. Access to data presents new growth opportunities; however, data breaches are also the fastest way to lose consumer trust. But with the pace of innovation picking up at financial institutions, they will need to focus on customer experience and personalisation to truly drive customer loyalty. Mtalkz is a unique service provider that enables your business to target loyal customers, increase repeat purchase, build brand advocacy and ultimately build a higher customer lifetime value through its B2C Marketing Automation Service. This includes services like data ingestion, content creation, customer journeys, campaign triggering, and reporting.

Related Article : How FinTech transforms communication using SMS

Guide users through key moments of your FinTech funnel by converting interested sign-ups into loyal spenders and investors with Mtalkz.

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