New, creative enterprises are revolutionizing banking and financial services like never before, driving financial technology, or Fintech, market expansion. The global value of the fintech industry is predicted to reach $324 billion by 2026, growing at a compound annual growth rate of 23.41%, per the Market Data Forecast.

Financial institutions find it challenging to apply the most effective solutions and safeguard their business and clients as the sector expands gradually and fraudsters develop at a similar rate.

Fintech Platform Smart Confidence and Privacy

Customers continue to be wary as a result of the financial institutions' slow implementation of tools.

According to the BIS poll from May 2021, US people believe conventional banking institutions are more trustworthy than Fintech when it comes to data security. In order to close the trust gap and safeguard people's data, the FinTech sector must do so.

Making Your Fintech Solution from Scratch

You must ascertain whether the user experience you are providing connects with consumers on a rational and emotional level before building a solution for your Fintech firm. How you assure credibility and functionality, added by your technology partner, will indicate trust if the fintech solution you offer is important.

Each step of product development, such as user experience, crucial feature development, business analysis, etc., should have a trustworthy basis in order to integrate trust into Fintech solutions.

Trust: The Undisputed Asset of FinTech

Big data, digital ID, and open banking are the first technologies that spring to mind when discussing fintech. New possibilities for digital transformation in the financial sector are made possible by these instruments. However, in order to encourage customers to try out the goods created utilising these Fintech breakthroughs, their trust is necessary.

The trust gap might also exist between consumers and platforms, sectors and tech providers, or platforms and sectors at any level in the digital banking ecosystem. However, it is evident from the aforementioned statistic that customers have greater faith in traditional banking institutions than in fintech ones, hence it is crucial to approach Fintech solutions holistically.

Consumers' Risks from Fintech

The fintech sector has a lot of risks for consumers. The usage of non-transparent data to both regulators and customers, as well as compromised data security, are the two main categories of these risks.

Loss of privacy, increasing dangers of fraud and scams, discriminatory applications of data analytics, and manipulation of customer behavior are all undeniable.

In these circumstances, there is a danger of joining the financial regulatory field with little operational experience.

How to Build Safety and Trust on a Fintech Platform?

Although it has drawn the interest of cybercriminals, the fintech sector has been adamantly opposed to it. Fintech companies are attempting to build reliable foundations for their clients and to uphold safety on the platform with the aid of new tools and technology.

Here are the ways to build safety and trust on a FinTech Platform

Smarter Cybersecurity

Within the Fintech space, failing to address cybersecurity may lead to serious problems. Fintech companies should be aware of their assets and use layered security so that if one protocol fails, it won't effect other protocols in order to create more resilient cybersecurity.

To do this, one can use IAM, multi-factor authentication, and cloud solutions (Identity and Access Management).

Blockchain

A network-wide distributed ledger that is digitally decentralized and distributed is known as a blockchain. It is composed of unchangeable building pieces. Using unchangeable blocks or nodes, blockchain distributes transactions among them.

Because any unwanted access will alter the hash connections and cause a mismatch between the nodes, the Blockchain is extremely secure. A fintech company benefits from blockchain's protection of its data as well as its added security.

Blockchain networks are completely decentralized, thus they do away with all the expensive, pointless activities and processes. Blockchain can undoubtedly prevent data breaches and other illicit activities from making financial services less vulnerable to fraud and cyberattacks.