Trust is one of the attributes attached to traditional Financial Services companies. Many banks, insurance companies, investment houses have hundreds of years of brand equity built up by their customers' trust in them. Such trust has so far given an advantage to established financial companies, but Banking as a Service (BaaS) FinTech opens new attractive opportunities for profitable neo-banks to erode the dominance of traditional companies.
However, many of these services are delivered from untrusted platforms. As multiple Security Lab exercises have demonstrated, mobile devices and their operating systems may not be as secure as many have assumed. The APIs for many banking apps can be accessed through simple code analysis, and these APIs link directly to bank networks and Customer Personally Identifiable Information.
As payments and access to consumer and business bank accounts continue to open up under Open Banking, the opportunity of the Internet of Things (IoT), from your smart speaker to your car, to instigate and smooth transactions is clear. But if the code and crypto-keys upon which the services depend are compromised, there will be severe consequences for the customer and for the regulated Fintechs (established or new) in the chain.
Trust is everything.