velocity and security / compliance requirements , some neobanks choose to use cloud-based security services ( such as managed SIEMs ) for analysing high volumes of traffic with limited upfront investments , as well as to use specialised third-party services for areas like KYC , AML or transaction-level fraud prevention .
“ In the long run , some of them end up developing their own cybersecurity products to reduce operating costs and there are a few instances where neobanks successfully packaged them as technology products that can be used by competitors .”
It is important to note that a comprehensive security framework that prioritises people , processes and technology , is paramount . This includes rigorous employee screening and training , cross-functional incident response plans and technical controls such as encryption and real-time monitoring .
Laurent Descout comments : “ Any system needs to incorporate the latest security and encryption protocols , this can include multi-channel two -factor authentication , four-eyes checks , a complete audit trail of all activity , continuous backups and much more .
“ In most neobanks , all actions are logged and stored , providing a complete audit trail of everything in the platform with continuous backups . At Neo , we offer RSA-2048 standard encryption .”
APIs for enhanced functionality APIs play a crucial role in enhancing functionality and integrating with third -party services . Neobanks use Open
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