The Bank, Financial Services, and Insurance (BFSI) industries are currently undergoing drastic changes. AI, IoT, blockchain, and other newer technologies compounded with changes of client expectations and preferences, are redefining how financial institutions provide services. Banks, insurance companies, and asset management agencies are transitioning to Fintech and moving towards a more flexible business model to adapt to the ever-changing technological advancements and legal protocol of the times.
Since 2015, financial institutions have already invested over $27 billion USD in its digital makeover. However, as this transition is happening, the IT industry is also making major strides. If financial services are released into the market prematurely without appropriate security safeguards just for the sake of establishing market presence, businesses risk losing everything to any problems or attacks that they’ll encounter. Therefore, not only does information security need to lead the way, but also needs to be closely integrated with business operations.
Forecasts predict that the Fintech market will grow by a CAGR of 10.1% every year from 2017 to 2025, with a net market value of $48.95 USD by 2025. As the financial sector transforms, Fintech also faces an endless stream of cyberattacks. Additional investments were made to combat these threats, leading to growth in the Fintech market.
[Ref: Mordor Intelligence, Allied market research, Cision PR news]
Credit card details leaked, ATM machines hacked, Bitcoin transactions compromised. All these incidents of victimized corporations and users are just a few of the common headlines that can be found on the news today. With new convenience comes new risks. Until a long-term solution is found, security concerns will always impede the growth of Fintech. During a transaction, a user’s device’s main function is to handle the exchange and receive authorization from the server through the internet. It is thus essential to implement hardware security in order to run the encryption algorithms and preventative procedures needed to avoid data breaches.
The core IP (NeoPUF) behind PUFsecurity’s solutions is an ideal entropy source with high-quality of randomness and unpredictability. Its inborn physical microvariation can be used as a UID, and has transaction protection through measures such as tRNG, authentication and PUF-based cryptography. PUF technology can function effectively without complex auxiliary designs and our IP function design is easy to adopt, cost-efficient, and low-power consumption. We also provide flexible, customized services tailored to any Fintech enterprise. Large or small-sized, startup or established, everyone can find the appropriate security solutions in PUFsecurity.
As electronic business devices and smartphones become prevalent, mobile payment has already become indispensable to daily life. However, the personal information and financial details involved in every transaction between a user’s device and the bank’s servers have also become the coveted prize of hackers stalking in the shadows. If each edge device could utilize some innate key in its hardware (with PUF technology, for example) to protect the information transmitted during these transactions, financial services will be more secure. In order to understand what is needed to protect servers and systems as well as to detect and defend from cyber threats, we recommend referring to the standards disclosed under FIPS Levels 3 and 4.
Let’s take the IoT and Fintech cloud servers for instance, the servers are responsible for processing requests from different devices. Practically, they’re also more prone to the threat of cyberattacks. Therefore, aside from the passive defenses required under FIPS Levels 1 and 2, the active defensive measures under Levels 3 and 4 are also necessary to detect and recognize potential attacks.