Research from Frost & Sullivan reveals that Australian fintech security has some catching up to do.
SMEs, government agencies and fintech start-ups will need to come together to take advantage of growth opportunities in order for the country to become a leader in financial technology innovation, says a new study by Frost & Sullivan.
The study – ‘Fintech in Australia – Trends, Forecasts and Analysis 2015-2020’- highlights the importance of data security to aid a strong CAGR growth rate across the sector and to ensure that the industry continues an innovative development.
Frost & Sullivan have identified four areas of concern for current security measures; biometric security, blockchain technology, analytics and data centres. With the adoption of biometric security across smartphones over the next 18 months, the report identifies the severely heightened increase of cyber-attack.
In addition, fintech companies that offer consumer and business finance services will need a customised and specific data centre, which opens up the area for data centre providers to attract a loyal customer base by offering a range of services such as managed hosting and cloud storage, the study found.
According to Frost & Sullivan research analyst, Saranga Sudarshan, the need for collaboration and partnership t protect financial data and ensure customer trust it more crucial than ever, also presenting the reminder that security does not just apply to a company, but also its entire supply chain.
“End-user attacks are the highest priority given that the decentralisation of personal smart devices, whether they are wearables, smartphones or personal computers, will make storage of end-user credentials the most vulnerable to security attacks,” said Sudarshan.
“Uniform security protocols will not be implemented without significant standardisation of operating systems and version updates.”
