Cybersecurity and data privacy in financial technology: emerging threats and strategic solutions

Abstract

Financial Technology (FinTech) has changed the way financial services are provided through technologies such as digital payments, mobile banking, blockchain, Artificial Intelligence, and cloud computing. These technologies have made financial services easier to access and improved the way organizations operate and serve their customers. However, they have also increased cybersecurity risks and concerns about the protection of personal data. This study examined the cybersecurity threats faced by FinTech organizations and looked at ways to improve data privacy and cybersecurity. A descriptive survey design was used for the study. Data were collected from 303 employees of selected FinTech companies in Lagos State, Nigeria, using a structured questionnaire. Out of the questionnaires distributed, 290 were properly completed and used for the analysis. The data were analyzed using SPSS Version 29. Descriptive statistics, Pearson correlation, and multiple regression were used to test the hypotheses. The findings showed that cybersecurity threats have a significant effect on the performance of FinTech companies, while good data privacy practices help to improve customer trust and organizational performance. The study also found that measures such as multi-factor authentication, data encryption, Artificial Intelligence, Zero Trust Architecture, and cybersecurity awareness programmes can help FinTech companies improve their protection against cyber threats. The study concludes that strong cybersecurity practices and compliance with data protection laws are important for providing safe, reliable, and customer-friendly digital financial services.