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4 Ways to Combine Speed and Security in Fintech

Apr 7, 2020 | Blog

The volatility of financial markets means that speed matters. Emerging domestic and international crises can affect the market dramatically. For example, the Dow Jones Industrial Average dropped 2,997 points in a single day – the worst single-day point drop in history due to fears over recent world events.

Investors need to be empowered to make rapid changes in response to market fluctuations. Milliseconds can make the difference between making a profit by selling high and losing money by selling low. Unfortunately, protecting customers’ financial information can impede performance, preventing financial institutions and their customers from acting quickly.

To boost performance without sacrificing security, financial institutions can leverage cloud and networking solutions.

Here’s an overview of 4 solutions that help the finance industry combine security with performance: 

1) Encrypted Wavelength

Many encryption solutions protect data at Layer 2 or higher, interfering with performance speed. Encryption at Layer 2 raises latency rates and maintains a lower standard of performance than at Layer 1. Both conditions are unacceptable in the finance industry, where time is of the essence.

By using encrypted wavelength, financial organizations can protect data at the transport layer without compromising network performance. Encrypted wavelength is low latency, enabling financial information to move quickly from the client to a bank or brokerage where real-time decisions can be made.

low-latency-networks-firstlight-services2) Low-Latency Networks

Financial technology or fintech needs to be supported by a low-latency network. Lags in the transmission of financial data keep financial organizations from operating in the best interests of their customers. Latency means crucial financial decisions may be made based on out-of-date or incomplete information.

A high-speed, fiber optic network guarantees low levels of latency. Data moves at the speed of light through glass fibers the width of a human hair. Information is transmitted along multiple wavelengths, allowing huge volumes of data to move at astonishing speeds without interruption. Fiber optic networks have the additional advantage of being able to easily scale up or down.

3) Encrypted Cloud Storage

Financial data must also be protected while at rest. Investor information is a tempting target for hackers who want to commit fraud and identity theft. Today’s cloud offers security measures that can meet the challenges of protecting financial information. The Ponemon Global Encryption Trends Study found that more than a third of companies use encryption in the cloud.

Encrypted cloud storage ensures that data is seamlessly encrypted and then decrypted when it needs to be accessed by the client or financial institution. Cloud storage from the right provider will supplement encryption with additional layers of security, such as an intrusion detection system (IDS), an intrusion prevention system (IPS), and 24/7 monitoring.

infrastructure-as-a-service-IaaS-firstlight-solutions4) Infrastructure as a Service (IaaS)

Data transmission isn’t the only performance challenge finance companies face. Fintech uses application programming interfaces (APIs) to deliver services to banks. Applications that are used to analyze information, interact with clients, and perform transactions must operate at high speeds while protecting sensitive information.

A robust cloud computing infrastructure helps applications perform optimally. IaaS can offer enterprise-level storage with high input/output operations per second (IOPS) rates to meet the performance requirements of advanced applications. Cloud infrastructure also offers high-availability computing for applications to enhance the user experience. 

Fintech Without Compromise

As the financial industry continues to embrace fintech and customers continue to rely heavily on digital and mobile banking during this era of social distancing, banks and brokerages will need to find ways to increase performance speeds without compromising data security. Financial organizations in the Northeast can find this balance by partnering with FirstLight.

FirstLight specializes in cloud and connectivity solutions for banking and finance. Our customers can leverage encrypted wavelength, encrypted cloud storage, and IaaS along with our high-speed fiber optic network for the perfect blend of performance and security.

Get all the details on FirstLight Encrypted Wavelength. Read our solutions brief.

encrypted-wavelength-solutions-brief-firstlight-solutions