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Trust is the real currency of fintech. No matter how sleek the UI or how innovative the features, users will abandon an app the moment they sense data risk. More and more consumers prioritize their data security, and account holders are growing increasingly skeptical as new tech and information emerge. Your competitors could be racing to position themselves as the safest solution.
The most successful fintech apps build trust from the first tap and reinforce it at every click, swipe and transaction. Here’s how you can make that happen for your app.
1. Start With Trust-by-Design
Trust is something you have to engineer into your platform from day one. This means embedding security cues in the UX, adopting clear consent patterns and ensuring every user-facing moment signals protection, transparency and control.
The biggest threat to perception, however, is when safety feels invisible. Your app may be running vital risk control processes behind the scenes, but users must see them to believe they’re there. While excessive security theatrics can create a false sense of safety due to continuous notifications, it can also lead to alert fatigue.
It remains crucial to make your trust-first design visible through meaningful cues such as:
- Masked account or card details
- Idle session timers
- In-transaction messages like “fraud check in progress” and “transfer encrypted” badges
- Clear device management screens
- Device login notifications
- Real-time suspicious activity alerts
When implemented well, these signals reassure clients that your app is actively protecting them with every transaction. However, your measures should extend beyond mere appearance and deliver genuine defense to avoid becoming mere security theater.
2. Meet the Industry’s Critical Compliance Standards
Compliance is a legal obligation as fintech apps handle vast amounts of sensitive information. Beyond that, it’s also a fundamental part of development that shapes user experience. Over 30% of the consumers you’re targeting are already doubtful of financial institutions’ honesty. You want to highlight how your system is different from the rest. To build solid evidence for security compliance, your product must align with the following major global frameworks.
PCI DSS
The Payment Card Industry Data Security Standard governs the secure collection, transmission and storage of payment card data worldwide. It applies to any entity handling cardholder information to reduce fraud.
PSD2
EU’s Revised Payment Services Directive requires Strong Customer Authentication (SCA) for electronic payments and mandates secure, standardized open banking APIs to enable third-party providers while protecting consumers.
General Data Protection Regulation (GDPR)
GDPR enforces strict rules on user information privacy, requiring explicit, informed consent, transparent data use disclosures and user rights to access and control personal details across the EU.
MAS TRM and PSN01
The Monetary Authority of Singapore’s Technology Risk Management (TRM) guidelines and the Payment Services Act’s PSN01 framework focus on cybersecurity risk management, protected payment service and incident response protocols for fintech firms operating in Singapore.
RBI and SEBI
The Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) establish standards for Know Your Customer (KYC) processes, digital lending practices and data localization requirements to safeguard consumers and maintain financial stability.
Meeting the rules is just one key aspect. You should also design compliance flows that are comprehensible to the customer, allowing them to grasp basic concepts for transparency and accessibility.
3. Explain Permission and Data Use Clearly
Trust collapses when platforms feel shady or overly intrusive. Still, users don’t need to wade through dense legal jargon that floods the screen, especially as 77% of them do not read the terms and conditions for such apps.
Your permission model should be human-readable, clear and concise. Highlight the value exchange in permitting data collection, such as saying, “We use this to detect fraud faster.” Then, include a permission dashboard where account holders can review or revoke access at any time to reinforce the user’s sense of control over the information they share. Fintech apps that clearly explain why they need information consistently outperform those that simply demand it.
4. Build Frictionless and Secure Onboarding
Onboarding remains the single biggest point of drop-off in fintech. It’s the first contact you have with a user and it’s important that you leave a good impression. People want safety, but they won’t tolerate any unnecessary friction. Your goal is to achieve a balance between speed and security. The best practices include:
- Biometrics + eKYC: OCR and ID scanning streamline verification without compromising compliance
- Smart defaults and auto-fill: Pull data from verified sources to reduce typing
- Adaptive MFA: Trigger MFA only for high-risk actions like new devices, large transfers or cross-border payments
5. Make Recovery Effortless
Security is paramount, but when a breach occurs, you must make it straightforward for individuals to report unauthorized transfers and recover lost funds. When a user sees a transaction they didn't make, they are often in a state of panic and vulnerability. By resolving the issue quickly and painlessly, the experience becomes a highlight of your responsiveness, not the activity itself.
Implement features that give account holders control over their accounts. You can include “not me” buttons for questionable transactions and offer a guided, step-by-step process for escalating fraud within the app.
Consider also providing the option to instantly freeze accounts or cards, so users don't have to travel to a physical location or contact customer service to put a hold on their funds. The more you empower people with their experience, the more loyal they become.
Trust Is the Feature That Makes Everything Else Possible
Security, transparency and trustworthiness are your strongest differentiators in a market that’s increasingly becoming saturated. Fulfilling these needs is the key to retaining users and driving higher engagement. When clients hand over their personal and asset information, building that relationship effectively is what leads to natural growth, loyalty and long-term value.
