In response to cybercriminals’ increasing sophistication, fintech cyber security continues to evolve, and new technologies are constantly developed. Cybersecurity expertise and adequate awareness are therefore necessary when dealing with fintech. In this article, we’ll examine the SAP Security Framework, as well as how it can, and is, being used in the Fintech Industry
How Does SAP Protect Customer Data?
Business applications and data are protected by SAP. Customer data plays a huge role within the fintech industry, meaning privacy protection is essential. SAP security strategies and tools should be implemented to ensure that this data remains safe.
For a SAP security strategy to work, security governance is essential. Guidance is taken from industry standards such as the International Organization for Standardization (ISO), the U.S. National Institute of Standards and Technology, and other such authorities on finance.
Audit and Compliance
Experts in SAP must be prepared to manage attestation audits and certifications within their security control assessments. Numerous certifications available can be addressed in-house or via third-party risk management.
Having resilience within a business allows SAP to adapt against any threats detrimental to the stakeholders’ interests, critical operations, and reputation. Management is implemented into SAP systems to help respond to threats and ensure a business’s resilience.
Alerts are provided through keen monitoring and searching for suspicious activities or vulnerabilities. This monitored process comes in the form of routine scans of external-facing web infrastructure and third-party penetration tests.
Threat and Risk Assessment
SAP uses a risk-based methodology that supports planning, countermeasures, and mitigation to ensure that customer data is protected. Threats can be addressed to assets and resources through assessment conduction and developing an understanding of the impact they could have.
Global Physical Security
The protection of physical assets is essential to the correct running of SAP security and the protection of customer data. Physical security programs are used to manage employees’ safety and protection while working. The overall security is elevated by protecting offices that integrate people and technology.
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Fintech Security Risks
Building a security solution for Fintech data can be a timely exercise, as many security concerns and risks should be avoided at all costs. Here are some of the most common issues found.
According to a 2019 study, capital market companies and banks spend around $18.5 million each year combating cybercrime. In addition, cyberattacks are estimated to cost financial service providers up to $18.3 million a year.
The information collected by these providers includes financial, contact, health, and other personally identifiable information. Hackers can exploit these types of information by taking advantage of weaknesses in the system. Moreover, most companies discover attacks when it is too late, exacerbating the problem. Data breaches in fintech companies are unknown to 64% of fintech companies.
A requirement of the Fintech industry is frictionless data sharing, where financial companies gather vast amounts of data, creating digital identity management and data ownership concerns. For example ‘What happens to client data after they have unsubscribed?’ The company must employ data deletion mechanisms or will face serious compliance issues if they do not.
Regional Security Requirements
Fintech companies need to follow all the regulations concerning ‘Know Your Customer’ and regional data protection practices, and privacy legislation at a regional level features restrictions towards fintech software on all the data that can be gathered and processed. Due to this, fintech apps must be developed with practical tools and a complete understanding of regional regulations in place. Fintech companies could isolate themselves from specific markets if they do not observe these measures.
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SAP Solutions Within the Fintech Industry
There are numerous solutions delivered by SAP which assist in transforming fintech applications for the better, helping to protect customers and businesses alike. Here are some of the most important ones.
SAP Financial Services
A financial management suite designed with the specific intent to help improve processes, grow businesses, and increase customer satisfaction for financial services companies.
SAP Fraud Management
A solution created to help fintech companies detect and prevent fraudulent activities in real-time using machine and advanced analytic learning capabilities.
SAP Insurance is designed to help insurers manage their core processes, such as claims management, policy administration, and customer service. SAP Insurance also offers advanced reporting and analytic capabilities, assisting insurers to gain valuable insights into how their operation is running.
SAP Banking Services
This solution offers end-to-end banking support and processes for multi-channel interactions, allowing FinTech companies to deliver a seamless customer experience that is much more personalized to the user.
The Future of FinTech Is Bright With SAP Solutions
The Fintech industry is filled with many highly challenging tasks to ensure that customer security measures are held to the highest level of protection, which many companies have tried to combat throughout the years. As the digital age advances, online fraud and cyberattacks continue to increase. SAP solutions are battling against the fraudulent activities that scammers are trying to process, helping customers and businesses. Third-party SAP security tools are also drastically supporting the future of fintech and organizations who are running SAP as they provide an automated tool to manage their organisation’s risk.