Fintech apps: As money moves without changing hands, extra caution needed

In recent years, the use of fintech apps in India has skyrocketed. These apps allow users to easily manage their finances, invest in stocks, and make payments, among other things. 

However, with the growing popularity of these apps, there has been — at the same time — a rapid increase in the number of fraudulent apps, which try to pass themselves off as genuine fintech platforms. 

So, how can one determine if a fintech app is trustworthy and genuine? Experts say that it is vital to first do your own research, check the company’s past credentials, and examine the security measures it has deployed to ensure safety and security.

“The apps need to be intuitive, clean and simple giving a seamless experience especially to first time users. For rural penetration, vernacular apps are most important for fintechs to drive higher adoption,” Jasmine B Gupta, Founder of Meitmoney says.

Based on the experts’ oft-repeated recommendations, we present some broad guidelines that help you make an informed decision. 

These are the guidelines to follow to ensure you deal with genuine fintech apps:

Do your research: Before downloading a fintech app, it is essential to conduct a thorough research. It is advisable to read user reviews, ratings, and testimonials, as these can provide valuable insights into the app's reliability and performance. Additionally, one can also check if the app has received any awards or accolades, as these can serve as indicators of its credibility. 

Verify the company's credentials: It is crucial to ensure that the fintech app is developed by a well-established and trustworthy company. Look for information about the company's founders, team members, and their qualifications. Verify if the company is registered with relevant regulatory bodies such as the Securities and Exchange Board of India (SEBI) or Reserve Bank of India (RBI). 

Check for security measures: As fintech apps deal with sensitive financial information, security should be a top priority. Look for features such as two-factor authentication, end-to-end encryption, and secure login processes. Take a closer look at the app's privacy policy and terms of service to understand how your data will be handled and protected. 

Seek professional advice: If you are unsure about the authenticity of a fintech app, seek advice from financial professionals or advisors. They can guide you based on their knowledge and experience in the industry. It is always better to rely on expert opinions to make informed decisions. 

Stay vigilant: Always stay alert and be cautious of any suspicious activities or requests from the fintech app. Be wary of apps that ask for excessive permissions, such as access to your contacts or location, without a valid reason. Additionally, do not share your sensitive financial information, such as bank account details or credit card information, unless you are certain about the app's credibility.

By following these guidelines and exercising caution, you can ensure that you are using a genuine and trustworthy fintech app. It is important to prioritise your financial security and choose apps that have been vetted and recommended by experts. By doing so, you can make the most of the convenience and benefits that fintech apps offer while keeping your finances secure.