Let us explore how enhancing the protection of banking applications throughout the software development lifecycle can lead to improved regulatory compliance, increased application security, and reduced development costs. Banking applications are often prime targets for attackers, who seek to disrupt accessibility and compromise sensitive information, including credit card data. Furthermore, vulnerabilities in online applications can grant unauthorized access to corporate networks and server programs, enabling criminals to alter or steal data directly from the applications.

Furthermore, similar to other software defects, the early detection and resolution of issues can lead to significant cost savings in the future. Numerous analysts, fintech testing experts and software development engineers concur that identifying and addressing bugs during the initial stages of development generally incurs lower costs. Often in the thousands of dollars compared to the tens of thousands of dollars required once the application is in production. Additionally, there are critical implications for the company’s reputation, as well as for individual managers, particularly concerning the potential leakage of sensitive user data, which could lead to dissatisfaction among users.

Enterprises can achieve a reduction in security-related maintenance costs while enhancing the security and regulatory compliance of their applications by incorporating security measures into existing development checkpoints, such as upon the completion of current feature and performance testing.

Solving a complex task

Security concerns can emerge in online banking applications for various reasons. Firstly, security considerations are often inadequate during the functional requirements phase. Developers may neglect to incorporate necessary security features as they may not be explicitly requested by the application owner initially. Secondly, even when security is taken into account, developers frequently address only the fundamental aspects, such as encryption, access control, authentication, and authorization. Additionally, there is often a lack of comprehensive input validation to mitigate risks such as cross-site scripting and SQL injection. Consequently, this oversight can result in a significant number of security vulnerabilities remaining in the source code.

Toward secure bank app development

Addressing security issues that emerge during the design and development phases can be a time-intensive process. However, organizations that have previously implemented initiatives such as capability maturity models and configuration management databases recognize that these efforts yield valuable returns. A well-structured process, developed over time, leads to improved outcomes, greater efficiency and cost savings.

Standardizing development methodologies, including rapid application development, waterfall and agile models, can enhance efficiency, save time, and improve quality. It is evident that optimizing the software development lifecycle through the implementation of appropriate security testing tools and a focus on software security represents a significant long-term business investment.

The fundamental objective is to establish quality testing standards and engage all relevant stakeholders. It includes business owners, application owners, security professionals, compliance officers, auditors, and quality assurance teams throughout the entire process from the outset.

Phases to be considered

• Top-level sponsorship: The initial and arguably most crucial step in this process is securing executive-level endorsement for software development and compliance. Achieving the necessary organizational changes for success in this area can be difficult, if not unfeasible, without strong executive support. Such backing allows organizations to establish robust web application security programs that meet compliance requirements, mitigate security breaches, and ultimately save time and resources.
• Involvement of all stakeholders: Organizations are encouraged to implement a structured approach to the development of secure software. This involves security teams, analysts, design, development, quality assurance, and audit personnel at various stages of the production process. By doing so, security issues can be addressed proactively as they arise during the development and deployment phases of an application's life cycle, beginning with an analysis of its business requirements.

1. Requirements phase

At this preliminary phase, it is essential to identify legal, security policy, and regulatory compliance requirements. Does the application handle data that is subject to government or commercial regulations? Will it access highly sensitive data or be hosted on the same server or network? If the answer is yes, it is imperative that security considerations are prioritized. The compliance and security officer will need to assess and approve the design and functional specifications of these applications.

2. Design phase

Security teams are encouraged to develop misuse scenarios and threat models during the engineering design phase. Usage scenarios will help define program requirements, while misuse scenarios will identify potential avenues for attackers to compromise a banking application, thereby gaining unauthorized network access or financial assets. The Quality Assurance (QA) team can leverage threat modeling within the application to pinpoint potential threats and vulnerabilities.

For instance, questions such as whether a successful Distributed Denial of Service (DDoS) attack could impact the availability of other applications should be considered. Additionally, if the application interacts with critical databases, it may necessitate the implementation of stronger authentication measures.

3. Build phase

Implement robust coding standards. Developers are encouraged to utilize secure coding practices throughout the development lifecycle. It is essential for developers to validate input accuracy, adhere to the principle of least privilege, and comply with platform- and language-specific coding guidelines. This represents a considerable challenge within the secure development initiative. The ongoing task is to consistently educate developers on current trends and best practices for developing secure banking applications.

4. Secure code review

Throughout the development process, it is imperative to incorporate security defect reviews alongside quality and functional code reviews. Software inspection tools can be utilized to facilitate the automatic detection and remediation of security-related vulnerabilities. Additionally, as the application development approaches completion, conducting integration tests becomes essential.

For instance, many software security safeguards operate as independent components and should be verified accordingly, while other vulnerabilities may only be identified after the application has been fully integrated.

5. Testing phases

The integration of security as a fundamental component of application testing, alongside functionality and performance, have to be considered for achieving success. After a program meets the standard quality assurance benchmarks, QA teams proceed to identify any potential security vulnerabilities. It is required to select a web application vulnerability assessment platform that can effectively evaluate both established and modern web applications created using contemporary technologies and services.

6. Deployment phase

The implementation of secure applications requires careful adherence to all recommendations for secure deployment. Secure deployment involves installing bank software with all secure defaults activated, ensuring that file permissions are correctly configured and that the application’s secure settings are utilized. It is essential to maintain the security of the program throughout its lifecycle post-deployment. A robust process for managing software patches must be established.

Additionally, it is important to assess new risks and effectively manage and prioritize vulnerabilities.

7. Production

Web applications that were previously secure may become vulnerable due to various changes. A vulnerability introduced into the system after an audit may remain undetected if security is approached as a one-time task. To develop secure banking applications, it is essential to view application security as an ongoing process integrated throughout the entire development life cycle. All team members involved in the creation and maintenance of your web applications should adhere to established security principles.