Fintech is growing fast. According to a report by Fortune Business Insights, the global fintech market was worth $340.10 billion and is expected to keep climbing at 16.2% annually through 2030. That growth comes from rising mobile banking, booming e-commerce, and the spread of AI-powered financial tools. 

But growth also draws attention from bad actors. Fintech systems manage private data such as user IDs, account numbers, and payment history, which makes them a constant target. Data leaks, app clones, malware, and third-party vulnerabilities are just a few of the ways things can go wrong. 

Smaller companies often feel this risk more deeply. Startups don’t always have a whole security team or the budget to hire one. Still, skipping security isn’t an option. A data breach in this space can cost millions and, more importantly, user trust. 

The good news: fintech app cybersecurity doesn’t have to be guesswork. With the right architecture, encryption, authentication methods, and ongoing testing, your app can protect both your users and your brand. 

In this guide, we’ll break down real challenges, smart practices, and tools that help you build a fintech app that’s secure from the ground up. Let’s dig into how that works. 

Highlights:

• The fintech business was worth over $295 billion in 2023 and is expected to expand at a 17% annual rate through 2030. 

• Weak logins, misconfigured APIs, and skipping compliance steps are the most common fintech cybersecurity mistakes. 

• Strong architecture, encryption, smart user checks, and systems built to handle audits when they come are the top priorities for fintech app security.  

Why is Fintech Cybersecurity a Problem? 

Most banking apps run on mobile phones and need to connect to the bank’s backend to work. That connection happens through APIs. These bits of code help different systems talk to each other. Many of them use open-source components, which is common in development and accelerates it. But with that convenience comes risk. 

If those APIs aren't monitored closely, someone with the right skills can copy their behavior and build fake versions. These copies, often called shadow APIs, don’t look suspicious at first glance. They don’t show up as broken or dangerous, so they’re hard to catch. 

Even when apps are built with security in mind, these quiet channels between systems often fly under the radar. Traditional tools focus on protecting the code, the user interface, or the login process. But attackers don’t always come through the front door. They find ways to slip between systems when no one’s looking. 

Top 5 Fintech Security Concerns  

These aren’t hypotheticals. These are real-world failures and the fixes that could’ve stopped them. 

Concern #1. Account takeovers and weak authentication 

In 2020, Robinhood customers saw unauthorized trades in their accounts. The attackers didn’t crack the system. They used stolen passwords from unrelated breaches. Robinhood didn’t enforce two-factor authentication (2FA) by default, and that left users exposed. 

Don’t wait for users to opt into security. Make it standard. Require 2FA. Use biometrics on mobile. Work with trusted KYC providers to make sure the person signing up is who they claim to be. 

Concern #2. Leaky data and misconfigured infrastructure 

Capital One’s 2019 breach exposed more than 100 million applications. The root cause? A firewall misconfiguration in their AWS cloud. The attacker didn’t need malware, a misstep in setup is enough for them. 

Encrypt data at rest and in transit. Set strict rules on who can access what. Monitor those logs and back up your data regularly. If someone walks in the front door, they shouldn’t walk out with everything. 

Concern #3. Unsafe integrations and API gaps 

In 2024, Ticketmaster was exposed to a cyberattack. The data breach exposed data from around 560 million customers due to a compromised third-party chat widget embedded on their checkout pages. 

Before you plug in a third party, look closely. What are their security policies? Who has access? Monitor every connection. Log every call. And don’t let a weak partner put your whole product at risk. 

Concern #4. Ignoring compliance until it’s too late 

In September 2022, Revolut was fined €3.5 million in Lithuania for failing to comply with anti-money laundering (AML) requirements, including proper customer identification and delayed reporting of suspicious transactions. This happened because they did not embed compliance into their daily processes. 

Rules like GDPR, PCI DSS, and AML/KYC aren’t just red tape. They’re table stakes. Make them part of your planning from the start. Automate consent records. Review policies often. Stay ready for audits. 

Concern #5. Mobile devices without boundaries 

Kaspersky, a cybersecurity company, found more than 200,000 new mobile banking trojans in 2022. These were viruses that seemed to be real apps (such as budgeting or financial tools) and stole users' login information.  

Mobile-first apps need more than password fields. Use biometrics. Check for jailbroken or rooted devices. Avoid storing sensitive info locally. And if your team uses phones to access internal tools, lock those down, too. 

10 Tips to Protect Your Fintech App 

Now that you’re aware of common risks, we can move on and discuss the ways to protect your application. Let’s start. 

Tip #1. Hire an experienced fintech development team 

It’s not enough to find engineers who can build features quickly. You need people who understand where fintech systems break and how to prevent such failures. Whether in-house or through an outsourcing partner, work with a team that know how financial systems are targeted, what local regulations require, and how to write software that holds up under pressure. Ask to see previous projects. Look for clients in banking, lending, or payments.  

Tip 2. Build the right foundation 

Before writing a single line of code, figure out what information your app needs to store.  The less sensitive data you keep, the less you have to protect. Stick to HTTPS, encrypt everything, and review how your app talks to its backend. 

If you’re using third-party services or APIs, pay attention to what they do with your data and what risks they introduce. Keep track of what goes in and out, and don't expect that someone else will do the complex tasks. 

Tip #3. Make reverse engineering difficult 

Some attackers won’t bother poking your servers, they’ll just copy your app. You can slow that down with code obfuscation. That means scrambling your code so it’s harder to read or reuse. Rename variables, encrypt key logic, and remove metadata. It’s not bulletproof, but it keeps casual clones out of your space. 

Tip #4. Lock down access from all angles 

Passwords alone are not enough. Instead, you require two-factor authentication or biometrics. If users log in from a new device, add extra steps. If someone fails five consecutive logins, shut them out. Risk-based checks, like analyzing login time, device type, or location, can catch threats before they cause trouble. 

Also, think about implementing role-based access and clearly defining roles: admins, support, and customers. Restrict what each role can do and make sure permissions expire when they’re no longer needed. 

Tip #5. Log everything, analyze, and act accordingly 

You should know what’s happening in your app at all times. Log user activity. Track high-risk actions. Spot outliers, like someone withdrawing $10,000 at 3 a.m. from a new IP, and freeze the transaction if something looks wrong. 

Some fintech teams use fraud scores to measure risk per action. Others create approval flows where multiple people have to sign off before money moves. Either way, the goal is the same: catch suspicious behavior before it causes damage. 

Tip #6. Secure data at every step 

Sensitive information like card numbers, account details, and personal data must be encrypted both at rest and in transit. But not all encryption setups are safe by default. Avoid outdated or insecure modes like AES-ECB or unauthenticated AES-CBC. Instead, use AES-GCM or AES-CTR with HMAC-SHA-256 and a unique nonce for each operation. 
 
If you're using RSA, stick to RSA-OAEP for encryption and RSA-PSS for digital signatures, never use raw RSA or legacy padding schemes. Make sure keys are strong (at least 2048 bits for RSA), never reused, and protected properly. Encryption only works if it's set up with the right algorithms, modes, and key management. 

Tip #7. Use tokens instead of real data 

Tokenization lets you swap out sensitive information (like a card number) with a random string that has no value on its own. The real info stays locked away in a separate system. Even if someone steals the token, they can’t do anything with it. It also makes it easier to meet security standards like PCI DSS. 

Tip #8. Secure your APIs and cloud services 

APIs are a favorite entry point for attackers. Protect them with access tokens, rate limits, and regular security checks. Only allow trusted parties to connect, and monitor their activities. Use validation to make sure they’re not sending bad data into your system. 

If you’re working in the cloud, stick with trusted providers and turn off services you don’t use. Keep everything patched. And segment your data, put the most sensitive stuff on servers with the tightest security. 

Tip #9. Conduct comprehensive testing 

Secure software development for fintech requires thorough testing, starting with clear requirements and scenario planning to spot potential risks. Functional checks, database behavior, API security, authentication routines, and user acceptability from a practical standpoint must all be covered. 

In addition to being able to reproduce realistic attacks, encryption or storage flaws, and verify compliance with data security regulations, a professional QA team must be familiar with industry-specific procedures, such as those in banking or insurance. Conducting penetration testing, auditing network design, and monitoring important metrics like server uptime and exposure points are also essential. 

Client-side testing identifies vulnerabilities such as injection risks and session mismanagement, whereas server testing guarantees that the tools and frameworks in use operate effectively under load. Even if you begin with in-house audits, it is a good idea to hire independent experts once a year to verify that nothing is forgotten. 

Tip #10. Integrate security in your daily workflows 

Most attacks don’t happen because someone wrote bad code. They happen because someone clicked the wrong link, left a port open, or didn’t know what to look for. Create clear rules for your team. Use company-issued hardware. Make logins traceable. Sign NDAs. And when something goes wrong, treat it as a learning opportunity. 

Finally, help your users stay safe. Share clear security tips on your website. Let them know how to report suspicious activity. And when they speak up, take it seriously. The best defense is a team working together. 

What Fintech Teams Need to Know about Regulatory Compliance 

When building a fintech product, your team can’t ignore the legal side of data security. The rules vary depending on where your users are and what kind of financial services you offer. Overlooking them can lead to severe fines, system downtime, and lost user trust. Here’s what might apply to your product: 

• PCI DSS. This one’s non-negotiable if you’re dealing with credit card data. It applies whether you store it, process it, or just pass it through. If your product touches cardholder data at all, PCI DSS is on the table. 

• ISO/IEC 27001. While not required by law, this certification shows you have a real process for managing security risks. It’s often a checkbox for larger partners and a good baseline if you’re building anything serious. 

• GDPR / UK GDPR. If you have users in the EU, EEA, or UK, and you’re collecting or tracking their data, you’re expected to follow these rules. That includes clear consent, breach notifications, and strict limits on how you use personal info. 

• PSD2 (EU) / PSRs 2017 (UK). These laws cover digital payments and open banking. If you’re offering account access or payment initiation, you’ll need to support Strong Customer Authentication (SCA) and offer secure, documented APIs. 

• eIDAS (EU). If your app includes e-signatures, digital onboarding, or identity verification, eIDAS matters. It defines what’s legally binding when users sign or approve something electronically in the EU. 

• FCA (UK). Planning to launch in the UK? You’ll need authorization from the Financial Conduct Authority. They look at how your product works, how you handle risk, and how you plan to stay operational when things go sideways. 

• GPG 13 (UK). This one isn’t mandatory unless you’re working with the UK public sector, but it's still a useful benchmark if you’re building anything that involves system-level monitoring or defensive logging. 

• APPI (Japan) & PIPA (South Korea). They govern how you collect, store, and share personal data from users in Japan or South Korea. Both include strict rules about sending data across borders and require clear consent from users. 

Compliance plan early in the product lifecycle. These laws affect how you collect, store, share, and secure data, and retrofitting them later is a costly mistake. 

Conclusion 

Fintech cybersecurity is a part of how products are built, from wireframes to launch to every update after that. With financial data, minor missteps can turn into significant problems. That’s why every decision, architecture, login process, and third-party tools should factor in how it keeps your users and business safe. 

A breach can wipe out years of work. A rushed launch without proper access controls or encryption can result in fines or, worse, loss of your users. Instead, take a layered approach. Define clear roles and permissions. Encrypt everything that matters. Use biometric checks and real-time monitoring. Stick to tested standards like PCI DSS. Test your defenses, fix what breaks, and keep records as if an audit is around the corner because it might be. 

Fintech keeps evolving. New risks will show up. But if you build with care and keep your eyes open, you can grow with confidence. Your users count on you to protect their money. Don’t give them a reason to doubt it. 

Does your financial project need an expert tech partner? Team up with Svitla Systems and earn a strategic competitive advantage for your financial projects by working with the right team of specialized experts in cybersecurity.