US Fintechs and Cybersecurity

The US fintech sector is booming. Considered the world’s largest fintech market, it continues to draw increasing levels of investment, with the COVID-19 pandemic providing a particular boon for the sector in driving digital channel uptake. The market is now starting to mature, with a number of companies becoming listed entities or finding buyers in the last year.

Of course, the US market is not one homogenous block. There are a number of key fintech hubs, from the world’s number one fintech hub in San Francisco to the flourishing fintech scene in Boston, and each of these has its own characteristics. From a regulatory perspective, there are also notable intra-US differences. In the absence of an overarching fintech regulatory framework, fintechs have to contend with a variety of regulations, both at a federal and state level.

Cybersecurity and data privacy are key focus areas of both federal and state regulators, not least because financial services companies are naturally appealing targets to cybercriminals. Yet, while fintechs consider security important, securing mobile apps can often fall through the cracks. The focus of most fintechs is on creating friction-free user experiences and often only standard mobile security protocols are used. This puts the organization at risk of data breaches, cyberattacks, and the resulting reputational fallout that this brings. However, in employing a number of specific techniques, fintechs can significantly improve their mobile app security.