Picture Sarah, a young professional eager to open a new bank account after moving to a new city. Excited about starting fresh, she steps into her local branch, only to be met with long queues, heaps of paperwork, and a frustratingly slow process. 

Despite her enthusiasm, the traditional onboarding experience leaves her feeling drained and disheartened. But then, she discovers a bank offering digital onboarding. From the comfort of her home, Sarah swiftly uploads her documents, completes identity verification through facial recognition, and sets up her account in minutes. 

Her experience was transformed from a tiresome ordeal to a seamless and efficient process. This was made possible through digital banking and its advanced onboarding procedures. The advent of digital banking has simplified the overall onboarding journey for customers like Sarah.

Understanding digital onboarding in banks 

Digital banking encompasses a wide range of online services that allow customers to manage their finances without stepping into a physical branch. These services include:

• Online account opening
• Digital wallets
• Mobile banking apps 
• Remote customer support 

The goal is to provide customers with a convenient, accessible, and secure banking experience that fits into their digital lifestyle.

Digital onboarding specifically refers to the process of bringing new customers into the bank’s ecosystem through digital channels. It leverages technologies such as;

• Biometric verification, 
• Optical Character Recognition (OCR), 
• Artificial Intelligence (AI), and 
• Machine learning to streamline various steps. 

Through these technologies, banks ensure error-free identity verification, document submission, compliance checks, and account setup, all performed quickly and securely online.

The customer onboarding process

Step 1: Initial interaction

Customers access the onboarding platform via the bank’s website or mobile app.

Step 2: Identity verification

Customers upload necessary documents (e.g., ID, proof of address). They use facial recognition or fingerprint scanning for biometric verification. Here, OCR APIs and biometric SDKs prove to be helpful for document scanning and identity verification.

Step 3: Data collection

Customers fill out digital forms with personal information. Furthermore, auto-fill capabilities help reduce the time and effort taken to enter data manually.

Step 4: Risk assessment and fraud detection

At this stage, credit checks, AML screening, and other compliance checks are performed. AI and machine learning algorithms are utilized for fraud detection.

Step 5: Account setup

Customers open the accounts through digital agreements and terms of service which are reviewed and signed upon selecting an account of their choosing. To make sure all the protocols are followed without visiting the office, E-signature solutions are used for secure digital signatures.

Step 6: Confirmation and account activation

Here, the completion of the digital onboarding process is confirmed and the account is activated. A digital welcome kit with account details and usage instructions is sent. Lastly, confirmation emails and secure account activation procedures are automated.

Step 7: Post-onboarding support

Ongoing support is offered through chatbots, live chat, and customer service hotlines. Feedback is gathered to improve the onboarding process.

Implementing digital onboarding in banking – best practices and possible challenges

While digital bank onboarding is crucial today, its implementation requires a thorough understanding of the best practices and possible challenges.

What kind of challenges stand in the way of digital onboarding? Let’s explore.

Best practices

To curb the above-listed challenges, banks and financial institutions (BFSIs) can adopt the following practices:

Create user-friendly interfaces

Use responsive design frameworks (e.g., React Native) to ensure a seamless experience across devices. Implement user experience (UX) best practices to guide users through the process smoothly.

Apply advanced identity verification

Integrate biometric SDKs (e.g., FaceTec, iProov) and ensure compliance with standards like FIDO2 for secure authentication.

Automate document processing

Utilize APIs for Optical Character Recognition (OCR) (e.g., Google Cloud Vision, ABBYY) to automate data extraction, reduce errors in data entry, and speed up the process.

Seamlessly integrate with core banking systems

Use middleware and API gateways (e.g., Mulesoft, Apigee) to enable seamless data flow and application integration with existing banking infrastructure.

Implement robust security measures

Implement Multi-Factor Authentication solutions (e.g., Authy, Duo) and ensure all data transmissions are encrypted using TLS/SSL protocols. Store sensitive information securely using encryption standards like AES-256.

Ensure compliance with regulatory standards

Integrate Know your Customer/Anti-Money Laundering (KYC/AML) compliance tools (e.g., Jumio, Trulioo) to automate compliance checks and maintain audit trails. Regularly update systems to comply with changing regulations.

Provide personalized customer experiences

Use data analytics platforms (e.g., Tableau, Power BI) to analyze customer data and create personalized onboarding journeys. Implement artificial intelligence and machine learning algorithms to predict customer needs and offer relevant services.

Offer real-time support and assistance

Integrate AI-powered chatbots (e.g., IBM Watson, Dialogflow) and live chat solutions (e.g., Zendesk, Intercom) to provide instant support and address customer queries in real time.

Work on a feedback mechanism

Use survey tools (e.g., SurveyMonkey, Typeform) to collect feedback and implement analytics to identify areas for improvement in the onboarding process.

Keep an eye out for regular updates and maintenance

Employ agile development and testing methodologies and continuous integration/continuous deployment (CI/CD) pipelines (e.g., Jenkins, GitLab CI) to ensure the platform is regularly updated and improved based on user feedback.

Fostering personalized experiences by streamlining the onboarding process

While digital onboarding in banks has existed for quite some time, many have not yet adopted or completely transformed their procedures. Moreover, with the rising data volumes, banks face challenges in maintaining data quality while ensuring data privacy and compliance with ever-changing regulations. On top of that, banks with legacy systems still struggle with fraud prevention techniques, which makes it difficult to transition to digital from physical onboarding. 

With the digitization of banking services, digital onboarding has become a norm in major parts of the world. Banks considering moving towards the digital from the physical, or developing financial technologies should consult with a technology services provider having ample expertise in the financial services domain. VentureDive is one such firm boasting an extensive portfolio in developing fintech products. Connect with our experts today to get started.

Imagine opening a new bank account entirely online without visiting a branch. This convenience stems from fintech innovations that use KYC (Know Your Customer) and AML (Anti-Money Laundering) processes to ensure security and regulatory compliance. As embedded finance seamlessly integrates these financial services into non-financial platforms, the importance of AML and KYC in fintech is growing at a fast pace. By centralizing and streamlining these protocols, companies meet regulatory demands and enhance customer experience, making everyday financial operations safer and more accessible.

In this article, we explore the concept of centralized KYC platforms, their implementation in embedded finance, and their potential benefits and challenges.

The history, importance, and technologies driving AML and KYC in FinTech

Anti-Money Laundering (AML) and Know Your Customer (KYC) are foundational elements in the financial services industry, designed to prevent fraud and ensure compliance with global regulations. 

• AML refers to a set of procedures, laws, and regulations designed to halt the practice of generating income through illegal actions. It involves monitoring customer behavior to detect and report suspicious activities to the relevant authorities. 
• KYC is a component of AML, focusing specifically on verifying the identity of customers, understanding their financial activities, and assessing the risks they may pose.

Diving into AML and KYC’s history

The history of AML traces back to the Bank Secrecy Act (BSA) of 1970 in the United States, which required financial institutions to report certain transactions. The importance of AML has significantly increased after major financial scandals and terrorist activities, leading to stronger regulations worldwide, such as the USA PATRIOT Act of 2001. KYC became prominent as part of AML directives to further enforce due diligence to verify clients’ identities and risk profiles.

Notable KYC and AML regulations in the European Union and the United States

• Bank Secrecy Act (BSA): Enacted in 1970, this primary piece of anti-money laundering legislation in the US requires fintech firms to establish Customer Due Diligence (CDD) procedures, report suspicious transactions, and maintain transaction records.
• USA PATRIOT Act: This law expanded AML regulations in the US, mandating KYC programs, enhanced due diligence for high-risk customers, and strict reporting requirements.
• Corporate Transparency Act (CTA): The most recent modernization of the US AML regulatory regime, requiring companies to file beneficial ownership disclosures to combat money laundering.
• Sixth Anti-Money Laundering Directive (6AMLD): In the EU, this directive builds on existing AML frameworks, enhancing efforts to combat money laundering and terrorist financing.

Technologies powering AML and KYC & the benefits they offer

Technological advancements have been pivotal in the evolution and implementation of AML and KYC in fintech applications development and ensuring seamless financial procedures. These include:

AML and KYC in practice – Use cases, challenges, and addition of RegTech in the mix

Practical examples of KYC and AML in FinTech

As banks and financial institutions (BFSIs) prioritize regulatory adherence, they can learn from the use cases of AML and KYC in financial services listed below.

HSBC 

• Issue: HSBC faced allegations of inadequate AML controls, allowing illicit funds to flow through its systems.
• Impact: The bank was fined a staggering $1.9 billion in 2012 by US authorities for facilitating money laundering by drug cartels and terrorist organizations.
• Solution: A reliable AML framework is crucial to prevent such lapses.

Danske Bank

• Issue: Danske Bank’s Estonian branch faced a massive money laundering scandal. 
• Impact: Approximately €200 billion of suspicious transactions flowed through the bank between 2007 and 2015, raising serious AML concerns.
• Solution: Stringent KYC processes and ongoing monitoring are essential to detect and prevent illicit activities.

Standard Chartered

• Issue: Standard Chartered faced allegations of violating US sanctions against Iran, Sudan, and other countries.
• Impact: The bank paid hefty fines totaling $1.1 billion in 2012 for inadequate AML controls and sanctions breaches.
• Solution: Effective screening of sanctions lists and AML management are critical.

JPMorgan Chase

• Issue: JPMorgan Chase failed to detect and report suspicious transactions related to Bernie Madoff’s Ponzi scheme.
• Impact: The bank paid $2.6 billion in penalties in 2014 for AML deficiencies.
• Solution: AML diligence extends beyond routine checks; continuous monitoring is vital.

Deutsche Bank 

• Issue: Deutsche Bank faced scrutiny for inadequate KYC processes.
• Impact: The bank was fined $630 million in 2017 for failing to prevent money laundering.
• Solution: Rigorous customer due diligence and accurate identity verification are non-negotiable.

Challenges associated with ensuring compliance in FinTech & the solutions offered by RegTech

While the importance of AML and KYC cannot be overstated, their implementation often presents formidable challenges for BFSIs. Striking a delicate balance between stringent compliance and operational efficiency is difficult because the intricate web of regulations, voluminous data, and evolving risks demands robust solutions. 

This gap could be filled with RegTech. Short for Regulatory Technology-RegTech offers innovative tools and approaches to tackle AML and KYC complexities.

Integration with AML National Priorities

• Challenge: Financial institutions must align their AML programs with national priorities such as corruption, cybercrime, terrorist financing, and fraud.
• Solution: Organizations need to assess how each priority applies to them, adopt policies and procedures, and enhance AML/KYC processes to detect and report relevant criminal activities.

Ultimate Beneficial Ownership (UBO) requirements

• Challenge: It is often difficult to identify perpetrators in the financial world. Recent events like the Pandora Papers and EU criminal liability for non-compliance emphasize the need for vigorous UBO registries.
• Solution: RegTech solutions can automate UBO checks, ensuring transparency and preventing misuse of complex networks of shell companies.

High onboarding costs and low conversion rates

• Challenge: Cumbersome onboarding processes lead to high costs and low customer conversion rates.
• Solution: RegTech streamlines customer onboarding by automating identity verification, risk assessments, and compliance checks, enhancing efficiency and improving the customer experience through AI and ML technologies like chatbots in contact centers.

Lengthy onboarding processes

• Challenge: Manual KYC processes can be time-consuming, causing delays in customer onboarding.
• Solution: RegTech offers digital platforms and automated workflows that accelerate onboarding, reduce manual effort, and expedite account setup.

Poor record keeping

• Challenge: Inadequate record-keeping hinders audit trails and compliance monitoring.
• Solution: RegTech ensures proper documentation, maintaining accurate records for regulatory purposes.

Considerations for BFSIs aiming for compliance in FinTech

The world of financial services is changing every day, especially its regulatory environment and consumer preferences. Adhering to these regulations and ensuring seamless customer experiences requires reliable digital solutions, which poses a problem for institutions still using legacy solutions.

Collaborating with FinTech partners like VentureDive allows BFSIs to harness technological expertise, improve efficiency, and scale seamlessly. Together, they can navigate compliance complexities and foster innovation, ensuring a secure, agile future for embedded finance.

Banks have stopped using one-size-fits-all marketing. Now, they use detailed data analysis to give customers a tailored banking experience. This change is enabling banks to work smarter and improve their bottom line.

To tailor their services, banking institutions analyze transaction records, account holdings, and economic indicators. They then craft targeted marketing communications, suggest relevant products, and offer personalized services that align with individual customer requirements. This method bolsters the relevance of their customer interactions and fortifies a strategy of precision engagement.

Understanding advanced analytics in BFSIs

For years, data analytics has been a cornerstone in banking, crucial for everything from investment banking and credit scoring to securities trading. As technology advanced, big data analytics has started playing an even bigger role in banking and finance. 

This evolution enables banks to predict trends, customize customer experiences, and make smarter decisions, making banking more innovative and customer-focused.

Core components of data analytics in banking

To fully embrace advanced data analytics, banks need to grasp the key components that power this technology. Think of advanced analytics as a four-layer cake, with each layer adding more flavor and depth to the bank’s understanding of data and customer behavior. The layers are further explained as follows:

Types of risks faced by banks – Where advanced analytics help and how?

Advanced analytics aids banks in navigating a wide range of risks by enhancing their ability to predict, monitor, and mitigate potential issues more effectively. 

Banking and data analytics – Implementation and applications

Use cases and benefits of data analytics in banking

1. Credit Scoring and Approval: Advanced analytics improve the accuracy and efficiency of the credit approval process. For example, JPMorgan Chase uses machine learning to assess the creditworthiness of loan applicants, analyzing vast datasets to predict loan default risks more accurately.
2. Customer Segmentation: This allows banks to segment customers based on behavior and preferences. Bank of America, for instance, uses predictive analytics to optimize its ATM network, forecasting cash demand patterns to ensure ATMs are adequately filled with the necessary cash.
3. Personalized Product Recommendations: Predictive analytics enable banks to suggest relevant products to customers. Wells Fargo leverages customer transaction histories and behavior to offer customized financial advice and product recommendations.
4. Fraud Detection Systems: Real-time detection of unusual transactions minimizes losses. Citibank employs analytics algorithms to monitor transactions, identifying potential fraud and freezing suspicious transactions before processing.
5. Operational Optimization: Analytics help identify inefficiencies in internal processes. By analyzing these processes, banks can optimize their cashflows and streamline operations.
6. Market Trend Analysis: Analytics are used to forecast market trends. Goldman Sachs analyzes market trends and their potential impact on their portfolio, making swift decisions to hedge against potential losses.
7. Regulatory Compliance Monitoring: Advanced banking analytics automate the tracking and reporting of transactions. This ensures compliance with regulations, reducing the risk of fines and penalties.
8. Improved Sales Management: Analytics drive effective sales strategies. For example, a European bank used machine learning algorithms to predict customer churn, launching a targeted campaign that reduced churn by 15%^.
9. Cybersecurity Management: Banks use analytics to detect and respond to cyber threats swiftly. For instance, a US bank corrected patterns of unnecessary discounts offered by private bankers, increasing revenues by 8% within a few months.
10. Enhanced Spend Analytics: Providing customers with insights into their spending patterns is another benefit. A top consumer bank in Asia defined 15,000 microsegments in its customer base using analytics, tripling the likelihood of customers purchasing the next product.
11. Liquidity and Cash Forecasting: Granular forecasting enables banks to optimize cash management.
12. Predictive Maintenance: Analytics predict when systems may fail, allowing for preemptive maintenance.
13. Application Screening: Streamlining the application screening process makes it faster and more accurate.
14. Customer Analytics: Deep analysis of customer behavior data leads to personalized banking experiences.

Obstacles to implementing advanced analytics in banking

The future of analytics in banking – Key considerations

Navigating the challenges of adoption—ranging from data integration and regulatory compliance to talent acquisition and security concerns—requires a strategic approach and a commitment to innovation. For banks looking to harness the full power of advanced analytics, partnering with a specialized technology solutions provider like VentureDive is a pivotal step. Connect with our experts to find out how we can help you keep pace with the rapid technological advancements.

Digital wallets have emerged as a powerful tool in the past decade. This innovation seamlessly blends technology with financial services and allows users to securely store payment information, passwords, and even loyalty cards. Imagine, you’re short on time and your electricity bill is due today. Without sparing much time, you open your bank’s app and pay the bill through the app. 

This digital wallet integration within banking apps helps streamline operations while enhancing the customer experience. Let’s delve into the benefits of this integration.

The shift toward digital payments – Worldwide adoption of digital wallets

A digital wallet is essentially a virtual container for financial credentials where users can store their payment information and upload credit/debit card details. When making transactions, the wallet encrypts and transmits the necessary information wirelessly via Bluetooth, WiFi, or other magnetic signals. This frictionless process ensures swift and secure payments.

Digital wallets transmit payment data with the help of technologies such as QR codes, near-field communication (NFC), and magnetic secure transmission (MST). They come in three types:

Payment tools and changing consumer preferences

Payment methods such as credit and debit cards are failing to satisfy increasing consumer demands. With the market reaching its peak, consumers are looking for more advanced options that require minimal effort. 

Banks aiming to boost their revenue and expand their customer base need to adopt digital financial services, such as digital wallets. Not only do digital wallets provide access to the unbanked, but they also serve the needs of consumers desiring a smooth and integrated user experience.

Data security with digital wallets

Digital wallets are equipped with robust security features to protect the sensitive data and payment information of users. Here are some key security measures integrated into digital wallets:

Digital wallet integration in banks and the benefits in place 

When it comes to integrating digital wallets in banks and financial institutions (BFSIs), there are certain procedures and steps these organizations can follow. 

How can banks implement digital wallets in their operations?

Benefits of digital wallets for banks

Financial inclusion

Digital wallets are fast-tracking financial inclusion, especially for underbanked communities. By circumventing geographical and infrastructural barriers, digital wallets offer a lifeline to financial services through mobile technology. 

This innovation reaches those previously outside the banking system in a way that negates the need for cost-intensive physical branches. Moreover, digital wallets open the door to a plethora of financial products, empowering the underserved to enhance their economic stability and growth.

Enabling financial services digitally

Digital wallets are the cornerstone of modern financial services, offering businesses and consumers streamlined payment processing, a user-friendly experience, and the ability to conduct cross-border transactions with ease. As a foundational element for banks, they are key to adapting to the digital demands of consumers, enhancing customer satisfaction, and tapping into new market opportunities.

A new stream of revenue

Digital wallets enable banks to swiftly expand their digital services, offering a quick go-to-market and cost-effective solution that opens up new revenue streams. This agility allows them to adapt to consumer needs aptly. Meanwhile, the low implementation costs provide the flexibility to enhance the wallet’s features and explore additional revenue-generating opportunities such as partnerships, loyalty programs, and flexible payment options such as Buy Now, Pay Later (BNPL) services.

Expanding reach with digital wallets

Digital wallets are key to unlocking financial services for broader audiences, including those in remote areas and the tech-savvy younger generations. Furthermore, digital wallets contribute to enhancing financial literacy by offering tools and resources that empower users to make informed financial choices. 

Conclusion – Digital wallets have a lot to offer for banks

As more and more consumers continue adopting digital wallets, it is now imperative that banks capitalize on this trend of digital wallet integration by aligning themselves with firms specializing in fintech development. 

VentureDive is among the top fintech development services providers that offer a variety of services from applications integration to open banking, and embedded finance, amongst a few. Discover how our extensive range of fintech solutions can help you fast-track your business through personalized, and innovative financial solutions. 

Do you find yourself fascinated with new apps offering financial services as well? Such as a ride-sharing app that whisks you to your destination, and deducts your fare from your wallet? These actions take place within seconds, displaying quick functionality. However, what if you receive an urgent call from your bank telling you that your digital wallet has been compromised, and your account is drained?

This scenario sheds light on the intricacies linked with the security of embedded finance platforms. This article discusses the why, and how of securing embedded finance platforms, and their impact on our everyday lives.

The importance of embedded finance security in the broader financial sector

Embedded finance refers to the practice of embedding financial services within existing digital ecosystems. Instead of relying solely on standalone mobile banking apps or websites, users can access financial products and services directly through the platforms they already use. For instance, think of a ride-sharing app with a digital wallet or an online shopping service with a Buy Now, Pay Later facility. 

As with all applications today, embedded finance products also need to be created with advanced security features, and transparent data privacy practices. This is because, cyber attacks have become all the more common, making data security an ever-growing concern.

Components of embedded finance platforms – The architecture underneath

Before understanding the practices that go into securing embedded finance platforms, it is crucial to understand their components and architecture. The technological backbone of these platforms includes; 

• APIs 
• iFrames 
• Cloud computing 
• Artificial intelligence and machine learning 
• Blockchain technology
• Biometric security 
• Regulatory technology (RegTech)

How to secure embedded finance platforms?

A few important ways to enhance security in embedded finance platforms include:

Data encryption

Employ strong encryption protocols for data at rest and in transit. This protects sensitive information from unauthorized access and breaches, ensuring that data intercepted during transmission remains unreadable to attackers.

Strong authentication and authorization

Implement multi-factor authentication (MFA) and robust authorization mechanisms to verify the identities of users. Consider using biometrics, one-time passwords, and security tokens for stronger authentication.

Advanced fraud detection systems

Utilize machine learning and artificial intelligence to monitor financial transactions and user behaviors for identifying and preventing fraudulent activities. 

Compliance with regulatory standards

Adhere to relevant financial regulations and standards, such as PCI DSS for payment security, GDPR for data protection, and regional banking regulations. Regulatory compliance helps in building trust and avoiding legal and financial penalties.

Third-party vendor management

Since embedded finance often relies on third-party services and application integrations, it’s important to manage and assess the security practices of all vendors. This involves conducting regular security audits of third-party vendors and ensuring they meet the required security standards.

Network security measures

Protect the network infrastructure through firewalls, intrusion detection systems (IDS), and intrusion prevention systems (IPS). This safeguards against unauthorized access and cyber-attacks. Also, consider employing secure network protocols like TLS/SSL for data transmission.

Securing APIs

• SSL network encryption

To enhance the security of API communications, organizations should prioritize two critical steps: 

• Enforcing SSL (Secure Socket Layer)

Ensure all communication between clients and servers is encrypted using SSL/TLS protocols, enhancing security and protecting data in transit.

• Adopting HTTPS (HyperText Transfer Protocol Secure)

Implement HTTPS on your website by acquiring an SSL certificate, which encrypts data exchange between users and your server, ensuring privacy and trustworthiness.

By implementing these measures, data transmitted over the internet becomes encrypted, making it alien to unauthorized parties. This proactive approach significantly reduces the risk of Man-In-The-Middle attacks, where malicious actors could intercept, access, or manipulate data during transmission.

• Request rate limiting

Rate limiting is a vital security measure that restricts the number of API calls from a specific IP address within a defined time window. This practice is essential to prevent Denial-of-Service (DoS) and Distributed Denial-of-Service (DDoS) attacks, where malicious actors flood the system with excessive traffic, rendering it unresponsive. 

By implementing rate limiting, organizations ensure that legitimate users can still access services even during an ongoing attack, preserving overall functionality and user experience. It is crucial to remember that rate limiting enhances security and contributes to cost savings by preventing unnecessary processing of excessive requests. 

• Access control limits (ACLs)

Access Control Limits (ACLs) offer a structured way to manage permissions. By configuring granular ACLs, organizations can precisely determine which users or systems can access specific data or functionalities.

ACLs become crucial in mitigating potential harm if an API key is ever compromised. Following the “least privilege” principle, where systems and users are granted only the essential access levels, organizations can substantially minimize security risks. Granular access control also ensures a more efficient and focused approach to data protection and governance.

• API hardening and penetration testing

With the evolving nature of APIs and the addition of new features, penetration testing is evermore crucial now. By simulating cyber attacks, organizations can identify vulnerabilities before hackers do. 

API hardening strategies include input validation and output encoding. Couple these with continuous testing to ensure that APIs remain secure even as they evolve and scale.

Securing iFrames

• iFrame sandbox and isolation

Sandbox is an attribute that allows website owners to impose restrictions on iFrames, which isolates them from other elements present on the page. With this isolation, the website and its visitors remain unaffected even if the iFrame contains malicious code. 

Site owners can customize the level of access granted to iFrames for browser functions, such as accessing the DOM, running scripts, and submitting forms. This provides an additional layer of security. 

The sandbox attribute looks like this:

<iframe 

src=”iframe_origin.html” 

sandbox=”allow-forms”

/>

• Setting website limits on rendering iFrames

Guarding against Clickjacking attacks is crucial. These attacks involve deceiving users into clicking concealed elements within an iFrame. To mitigate this risk, consider managing which websites can display your iFrames. You can achieve this by leveraging HTTP headers such as X-Frame-Options and implementing a Content-Security-Policy. These measures restrict rendering to trusted domains or even confine it to the same origin.

• Input validation and sanitization

Validation and sanitization of user input are vital for preventing Cross-Site Scripting (XSS) attacks, where attackers inject malicious scripts through input fields. Utilizing modern browser features like the MessageChannel interface allows for secure two-way communication between the iFrame and the parent document.

Moreover, sanitization techniques should be applied to strip out or neutralize characters with special meanings in HTML, JavaScript, or SQL, thereby reducing the risk of code injection attacks.

With great financial services comes a greater need for securing embedded finance platforms

Financial institutions need to stay abreast of emerging cybersecurity threats and follow the best practices for optimizing security in embedded finance platforms. This can be done by partnering with a fintech solutions provider that understands the importance of unique security concerns related to APIs, and iFrames, and earning SOC2 Type II attestation. 

VentureDive is one such firm with expertise in building fintech apps with the necessary security measures. Discover how, on top of fintech consulting, we can design, develop, and deploy fintech apps keeping security at the forefront.