How Fintech Apps Ensure Data Protection and Compliance with Global Financial Regulations

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November 18, 2022 Business

Understanding the New Fintech Market

“Fintech” is short for “Financial Technology”. Basically, this is an umbrella term that covers things like digital cryptocurrency markets, but it also includes online pay portals like Paypal. Essentially, any sort of financial technology designed to facilitate reliable digitized currency management is financial technology, or fintech.

As international technological development compounds, collaterally, fintech follows after. That means things like Machine Learning (ML) help facilitate increasingly secure transactions over time. Known financial scams can be proactively identified before targets are reached through Artificial Intelligence (AI) which utilizes ML techniques to recognize and anticipate patterns.

Cloud-based software helps decentralize such technology, which has a few key advantages. For one, servers function like pixels in a grand “image” of a data network. This exponentially compounds computational capability, which is key in encryption, decryption, and data security generally. Many fintech applications are centered in the cloud.

Risk Management Mitigation

A great example of fintech utilizing cloud computing, ML, and AI is Nice Actimize. Businesses like Nice Actimize don’t just rebuff cybercriminal exploitation, they stay ahead of it. Contextual tech strengthens client understanding and security, facilitating more effective overall risk management in an optimal, efficient, and accurate way.

As such technology becomes more mainstream, regulatory compliance both defines and is defined by it. Consider the intersection of cryptocurrency and non-crypto markets.

Regulations must necessarily adapt to blockchain technology. (Blockchain is basically a fancy term for an unalterable permanent ledger, facilitating transaction security and traceability over time.)

To function in digital financial markets in a secure way where data is properly protected in all compliance with shifting regulations, it becomes important to work with apps at the forefront of “cutting edge” technology. Crypto markets are international, and so general banking has been prompted to follow the trend.

A Global Financial Market

The existence of fintech likely wouldn’t be possible in the way it is without the manifestation of a global financial market. Such a market is likewise impossible without regulation. What all these things are leading to is a society where assets and finances are reliably transferrable without any physical exchange whatsoever; a “cashless” society, as it has been called.

The Internet of Things (IoT) is possible because of the cloud. As ML and AI facilitate increasingly efficient global tech implementation, fintech will become a necessary component of associated infrastructure, and IoT will support it. So keeping up-to-date on the latest “app” will be as important as updating your debit card every couple of years.

This will affect “end user” clients at a non-corporate level, but first companies must become aligned with the latest fintech best practices. Doing so will initiate competitive advantages. If you can offer services to a global market by upgrading to fintech currency management solutions, you’ll outpace locally-bound competitors.

To summarize: fintech necessarily increases regulatory compliance and technological advancement. Data is protected because it must be fundamentally. As the global financial market changes, such protection will continue to compound. Getting in on the ground floor, or as close to it is possible, is a great way to position your business for future success.