Why Every Fintech Company Needs DevOps
DevOps is crucial for fintech companies for its ability to improve performance, compliance, and security.
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Fintech companies need the DevOps software development approach to ensure they are delivering safe, high-performance apps. Development and operations, or DevOps, is a software development method that combines traditionally siloed teams into one unit.
This change allows for faster releases and updates, improved app performance, easier compliance and auditing, and stronger security. Why are these features crucial for fintech companies today? How does DevOps improve performance, compliance, and security?
Improved Transparency and Compliance
Transparency and compliance are central concerns in fintech. Demonstrating compliance with regulations builds trust with users, reassuring them that a company is handling their financial data responsibly. This is especially important today due to increased cyberattacks targeting the finance sector. For example, as of the first quarter of 2022, finance is the most-targeted industry for phishing attacks in the world.
DevOps can address security concerns by improving transparency and simplifying compliance while delivering a better customer experience.
The close collaboration between the development and operations teams makes it much easier to keep track of documentation that’s key for compliance and audits. Plus, since the groups work so closely together, it is less likely that any key compliance details or measures will fall through the cracks.
DevOps can be particularly effective for fintech companies using different IT infrastructure simultaneously. For example, a startup might keep all its data in cloud servers while the local bank it partners with still uses legacy apps and on-premise servers. The DevOps approach prioritizes streamlining the IT environment so new apps run smoothly across different types of infrastructure.
This helps performance and simplifies audits, compliance, and transparency. Since DevOps fosters consistency across different platforms and IT environments, it is easier to monitor and report how data is used.
Mitigating Cryptocurrency Risks
Cryptocurrency is one area of the fintech industry that needs special attention. The rise in cybercrime over recent years is generating a negative reputation for cryptocurrencies due to their common use in ransomware attacks. Of course, most people who use and invest in crypto are not criminals and may be targeted by hackers themselves.
Even cryptocurrency marketplaces have come under attack by hackers. In fact, attacks against cryptocurrency users and platforms have gotten so bad that the IRS has announced plans to increase enforcement efforts for crypto regulations. As a result, fintech companies need to double down on security and compliance for apps that include cryptocurrency features.
Considering the growth in cryptocurrency adoption over recent years, particularly for Bitcoin, demand for crypto features in fintech apps and services is likely to remain high. The DevOps mindset brings this user need into the development process while prioritizing security and compliance throughout the cycle.
Additionally, DevOps gives fintech companies the agility they need to keep up with the cryptocurrency market, which can change rapidly. The close collaboration between developers and operations personnel removes many unnecessary delays that push back release dates for new apps and features.
If a cybercrime campaign emerges that specifically targets a certain cryptocurrency, a fintech company using DevOps can quickly analyze the problem, develop a solution, and roll it out to users.
Faster Releases and Updates
Agile releases and updates are important for the fintech industry today for various reasons. Security is a top concern for all niches of the sector. Financial businesses remain top targets for cybercrime, so downtime and slow update cycles can put fintech companies and their customers at risk of cyberattacks.
The streamlined continuous improvement cycle of DevOps ensures that fintech companies are always looking for bugs and security vulnerabilities. DevOps teams can rapidly roll out security updates and patches to users when needed, preventing breaches before they occur. A conventional siloed approach to development and operations means crucial developments in the cyberthreat landscape could go unnoticed or unaddressed during the prolonged creation and release processes.
Additionally, the emphasis on automation in the DevOps approach minimizes inefficiencies like downtime and manual processes. For example, DevOps prioritizes continuous monitoring, an easily automated process. In fact, AI data analytics algorithms can even autonomously recognize key insights and patterns in fintech companies’ data.
Automated monitoring and analysis of customer needs and performance data allow for more accurate demand forecasting and timely updates. Automating processes like this enables fintech companies to gain the agility needed to keep up in rapidly developing niches like cryptocurrency and mobile banking.
The Fintech Industry Needs DevOps
The financial technology industry needs to implement the DevOps software development approach to stay ahead of rising security risks and industry innovations. DevOps helps businesses release new apps faster, more securely, and more responsibly with improved transparency and compliance measures. It allows fintech companies to deliver quicker, safer performance and a streamlined user experience.
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