7 AppSec Trends that Will Keep Your Banking Info Safe in 2023

by GuardRails on May 2, 2023

As technology continues to advance, the banking industry is not immune to the rapid changes that are taking place. With the ever-increasing use of mobile and internet banking (coupled with the rise of new fintech disruptors), the need for secure applications is more important than ever. It’s essential for banks (and financial institutions) to stay ahead of the curve when it comes to application security.

In this post, we will explore the top AppSec trends that we predict will emerge in the banking industry with the year. These trends have profound implications for banking applications’ security and will require banks to remain vigilant about their security posture. By staying up-to-date with industry trends and implementing security best practices, banks can reduce the risk of security breaches and protect the sensitive data of their customers.

Increase In Adoption Of DevSecOps practices

Security isn’t just confined to the Cybersecurity team; a paradigm shift is required in order for institutions to shield themselves against regulatory and reputational risk. One of the most significant trends sweeping the industry is the increased adoption of DevSecOps practices. DevSecOps is an approach to software development that integrates security into each phase of the development process. This means that developers and security teams work closer together to ensure that security is baked into the product from the outset.

By adopting DevSecOps practices, banks can reduce the risk of vulnerabilities and breaches while also improving their time to market, offering delightful user experiences, products, and services to customers. The demand for DevSecOps in banking is more pressing than ever, as cyberattacks become increasingly sophisticated and frequent, and customer trust requires tighter security controls.

Emphasis On API Security

As more financial institutions move towards open banking (the practice of securely sharing financial data between banks and third-party service providers – commonly leveraged by digital banks), the need for secure APIs becomes critical. APIs are necessary for connecting different banking systems and applications, but when they are not properly secured, they can become a major vulnerability point for cyberattacks.

To address this, the banking industry is increasingly adopting API gateways, which are designed to centralize API traffic and provide necessary security controls. Moreover, API security testing is becoming a mandatory requirement for banks to ensure that they are compliant with industry regulations and to protect their customers’ sensitive information. As a result, API security is expected to remain at the forefront of AppSec priorities for banks in the upcoming years.

The Emergence Of Zero Trust Architecture

Zero trust is an information security paradigm focused on maintaining strict access controls and not trusting anyone or anything by default, inside or outside the organization’s perimeter. It replaces the traditional trust model, which assumes all activity within an organization’s network is trustworthy by default. By adopting a zero-trust architecture, banks can ensure that only authenticated and authorized users and devices have access to the resources they need, minimizing the attack surface and reducing the risk of unauthorized access and data breaches. Consistent application of zero trust principles can improve security posture and reduce the likelihood of successful attacks.

Greater Focus On Mobile App Security

As the use of mobile banking apps continues to increase globally, the need for stronger mobile app security and authentication measures is becoming increasingly critical for banks. We anticipate a greater focus on mobile app security and authentication, with an emphasis on implementing robust authentication methods such as biometrics, multi-factor authentication, and behavioral analytics. Banking institutions will also need to invest in cutting-edge mobile app security tools to further enhance their security posture and protect against new and emerging threats.

Additionally, we expect to see an increased use of security frameworks and standards such as OWASP Mobile Top 10, ISO 27001, and NIST Cybersecurity Framework to steer the design and development of secure mobile applications. By prioritizing mobile app security and authentication, banks can build trust with customers and ensure that their sensitive financial information remains protected while using mobile apps.

Multi-Factor Authentication Goes Mainstream

As technology continues to enhance the way we interact with our finances, multi-factor authentication (MFA) is becoming a mainstream solution for added security. In addition to traditional passwords, MFA adds an extra layer of protection by requiring users to provide additional authentication factors such as biometrics. This trend is being driven by the growing concern for online security, and the need to protect sensitive data and personal information. MFA has been proven to reduce the risk of account hijacking, and with advancements in technology, it is becoming easier to implement and use. We anticipate that MFA will become the standard security measure for banking applications.

Increased Use of AI and Machine Learning

The use of Artificial Intelligence (AI) and Machine Learning (ML) in the banking industry is quickly gaining traction. Aside from its customer-facing use cases (paycheck detection and customer underwriting, for example), it also provides advanced security measures that can combat cyber threats more effectively. AI and ML algorithms are capable of detecting anomalies in data and predicting potential threats before they occur, allowing banks to take appropriate preventative measures. Additionally, these technologies can also help in preventing fraudulent activities in real-time. The increased use of AI and ML is expected to be a significant trend in the banking industry through 2023, as banks recognize the benefits of implementing this technology to enhance their AppSec strategy.

Embracing Cloud-Based Security Solutions

The adoption of cloud-based security solutions has continued to gain momentum in the banking industry, with a growing number of institutions leveraging this technology to enhance their app security management capabilities. We expect this trend to continue its upward trajectory as more financial institutions seek to strengthen their security posture and manage risks associated with their mobile applications. Cloud-based security solutions offer several key advantages over traditional on-premise security solutions, including greater scalability and flexibility, faster deployment times, and reduced maintenance costs.

With the increasing complexity of app security management, embracing cloud-based solutions can help banks streamline their security operations and better protect their users from a wide range of cyber threats. Overall, we anticipate that cloud-based security solutions will play an increasingly important role in the app security landscape of the banking industry in the coming years, as institutions seek to stay ahead of rapidly evolving threats and maintain trust with their customers.

Conclusion

The world of banking faces numerous security challenges every day, and the situation could become even more complex with the emergence of new technologies. With these upcoming trends, such as biometric technologies, cloud technology, and artificial intelligence, we can expect that banking and financial institutions will continue to face challenges in securing their systems and customer data. However, implementing the necessary measures to counteract these challenges and staying ahead of the emerging threats can offer a better way forward in ensuring their systems and customers remain safe.