Financial Services Must Rethink Their Security Approach With Saas Growth

Sudeep Srivastava July 7, 2022
Financial-Services-Must-Rethink-Their-Security-Approach-With-Saas-Growth

Technology continues to evolve and with each evolution, multiple sectors start to benefit from the process. 

One such technology benefit was seen in 2004. The launch of Selenium, an automation tool that changed the way business sectors functioned in their funnel stages. Apart from the multiple common sectors, the impact of technology reflected benefits especially for the financial sector.

The finance industry was always overshadowed by their doubtful security financial services measures. From managing data systems to maintaining it, when it comes to security, the finance industry has issues. Cloud and SaaS can go a long way towards supporting inclusive banks in the developed world.

However, these issues can be eliminated if the finance industry implements SaaS growth for their security measures. As per financesonline, the SaaS space will grow to $623bn in market capitalization by the year 2023.

To help you understand the impact and advantage of this SaaS growth rate process and bootstrap your SaaS business, let this blog be your guide. 

Why Should Financial Services Turn Their Attention Towards Saas?

Financial institutions must be able to connect effectively with their consumers, deliver great service, increase efficiency, and adhere to tight laws and regulations all while saving money. This can be done efficiently through SaaS banking. There are several Welcome-kits, forms, statements, and dunning texts for the financial services authority sector that prove to be vital for organizations to communicate with their clients.

Key Saas stats

Consulting, training, education, support and maintenance services are all part of the security as a service tools. These services assist clients in comprehending their solutions and procedures. 

During the projected period, the solution segment is expected to have a bigger market share. A considerable number of Small and Medium-sized Enterprises (SMEs) are using security as a service solution to protect their enterprises from cyber threats across their cloud-based applications and platforms.

This use of innovative security services has brought SaaS finance or financial service institutions up to par with their global competition and has changed the traditional banking practices. 

The banks’ Electronic Fund Transfer (EFT) service has changed the money transfer landscape, and the Electronic Clearing Service (ECS) has aided large corporations in paying their salaries, dividends, interest, and refunds electronically on time. The monetary segment today operates in a more competitive setting than in the past, facilitating a relatively large volume of global budgetary streams and channels.

The selection of the ideal SaaS finance tool is critical to the project’s success. Automated tools are easy for beginners to get started with as simple setup digital tools run via multiple browsers. Test cases are built up of repeatable routines, allowing for more productivity with less maintenance. And if you make changes to a frequently used procedure, the changes are instantly reflected in all recognized processes with similar components. Digitized processes reduce the problems that employees face when performing critical tasks on a daily basis in a large institution.

Benefits Of Cloud Hosting

Backend development

There are numerous benefits of cloud hosting in banking and financial services, one being eliminating the need to consider any hardware upkeep in a data center with reference to connections or hard drive maintenance.

Your site is safe from any physical server concerns, such as security issues and hardware breakdowns, with cloud servers and E2E cloud.

The most significant advantage of Cloud Server is in terms of security. A cloud is an immaterial object. Server Hosting, on the other hand, is bound by the same security policies as its users. Firewalls, antivirus scanners, and DDoS (distributed denial of service) protection are all available on various cloud servers.

Cloud servers used to be difficult to manage and utilize, and scaling and optimizing your server required skills. With today’s latest technology and cloud hosting, you can easily keep track of your website and request on-demand help 24 hours a day, 7 days a week to modify your hosting through an easy-to-use dashboard. All of your data are saved in multiple locations throughout the cloud, making it easier for you to access them quickly and without any difficulty. Also in order to run a cloud server, technical knowledge isn’t required.

Fighting against cyber attacks

Despite the fact that the financial industry is one of the most heavily regulated and protected with regards to cyber defenses, fraudsters are still pursuing the valuable information held by these businesses. According to Business wire, 73% of fintech SaaS companies have at least one critical security misconfiguration.

Hence such threats must be addressed from a defensive standpoint using a three-tiered approach which includes people, procedures, and technology which is easily possible in a Saas financial model.

A cyber attack on a financial institution will cause far more damage than just money alone. People have faith in financial institutions because they believe they are safer than other options. With a data breach, investors and customers will lose faith in the SaaS development company and the bottom line will suffer as a result. The approach should be SaaS banking to solve such issues.

Security plan 

SaaS industry growth helps to design a comprehensive cybersecurity plan for your financial organization as a strategic partner. They would enforce a group of trained security professionals with extensive experience dealing with financial institutions’ most pressing cyber threats. 

As per some reports, 28% of IT leaders are already using some kind of SaaS financing management tool to get visibility into shadow IT that is necessary to protect their data and systems.’’

SaaS product ideas provide a range of financial services authority to assist your financial security network measures, test your defenses, and find any gaps in the present information security SaaS approach. They can also provide a comprehensive set of SOC-as-a-Service capabilities and services to safeguard your network, endpoints, cloud apps, and infrastructure.

Read more

Security in the SaaS business financial model is a heated topic. Expert assistance is available through SaaS financing based technologies to help you handle compliance issues and cyber dangers. To meet the financial sector’s cybersecurity needs, they combine financial expertise with extensive cybersecurity experience.

To enable proper decision-making and future planning, every organization should generate reports with meaningful data collected from all sources feasible. Instead of a separate design for numerous platforms, the reports developed using cloud-based security service platforms are unified into a single dashboard. The process of comparing all of your data and input is done in a more strategic manner using report-generating capabilities.

Advisory benefits 

Many restrictions necessitate the implementation of a comprehensive cybersecurity program by financial organizations. SaaS security tools can assist you in developing or refining your application to satisfy this criterion. They assess your present program maturity, identify its strengths, and provide a complete analysis, as well as a detailed action plan to address any shortcomings and address your most pressing needs.

SaaS security tools customize their evaluations to provide an objective assessment of your security financial services program in comparison to the GLBA and other legislation’ criteria. They can also advise your financial services software companies on the best ways to solve compliance or overall security deficiencies.

These tools include a variety of red-team and tabletop activities for putting your cybersecurity program through its paces with reference to the real-world circumstances. These exercises can be used to test the technical aspects of your financial security services program on a functional level, or they can be used to test your company’s security program at a higher, corporate decision-maker level.

Insider Threats 

Finally, a comprehensive cybersecurity strategy must take into account the individuals involved. As a result, SaaS-based applications exist to assist detecting and preventing insider threats,  blocking advanced and persistent bots and digital skimming assaults. They defend your websites and applications from automated attacks while enabling business-critical traffic to pass unhindered. On the other hand, these financial security services develop Client-Side Protection solutions that are customisable according to your institution.

Contact us

Conclusion 

Financial institutions handle large amounts of extremely sensitive personally identifiable information and must adhere to the strictest financial security network standards. To avoid costly breaches and non-compliance, SaaS business financial models protect your customer data and business-critical apps wherever they live.

Current security as a service platform and SaaS application development company in USA helps you in ensuring a smooth and quick cloud migration while being secure and compliant. Whether on-premises, in the cloud, or a hybrid environment, SaaS financial models and applications can help you manage risk and better protect your assets. 

THE AUTHOR
Sudeep Srivastava
Co-Founder and Director
Prev PostNext Post
Read more blogs
financial planning software

How to build a custom financial planning software for your business?

Digitization is another term for modernization, and this stands true for all businesses. However, finance is one of the core functions of every business. Planning finances effectively can make or break the business. Another core component of any business is technology. Combining the two components, “Fintech” is the word that has worked wonders for organizations,…

Sudeep Srivastava
Insurance automation

Insurance automation - How is RPA transforming the Insurance sector?

Millions of people everyday sign up for a multitude of policies for security in the insurance industry. The customers are going all the way up for contextualized and real time conversations with their insurers to get hold of maximum benefits. As for insurance businesses, the operations are accustomed to marketing realities of low premium and…

Sudeep Srivastava
How to Choose the Right Financial Software Development Company: 10 Factors to Consider

How to Choose the Right Financial Software Development Company? 10 Factors to Consider

It is a known fact that both finance and software have the power to either build or destroy a company. Any major glitch in the software can disintegrate the entire financial system. Having said that, no company can survive without either of the elements, neither finance nor software development.  Recent situations have sped up the…

Sudeep Srivastava