Faith in fintech

Over the weekend, many users of a popular mobile wallet app found themselves in a state of worry as fraudulent transactions occurred without their consent. Others quickly noticed the absence of the one-time PIN, which is typically sent to the registered mobile number for security purposes. This led to suspicions that the breach might be an inside job, as the perpetrators made the fraudulent transactions appear legitimate and seamless. In response, the company issued a statement assuring users that they were doing their best to recover the stolen funds. However, for many, the incident represented a clear breach of trust that could potentially cause them to lose faith in technology altogether.

I am among those who have long been skeptical of financial technology or fintech. If it weren’t for the pandemic, which encouraged cashless transactions, I doubt I would have ever considered placing my money in a digital bank. Over time, however, I found the convenience of digital money increasingly undeniable. Paying bills no longer required me to stand in line; I could do it with just a few taps on my phone. Purchasing necessary items, such as prepaid load and other essentials, became a quick and hassle-free process.

My initial resistance to digital banking was rooted in concerns that many others share: I was uncomfortable with the idea of entrusting my financial information to a faceless entity, fearing it would compromise my privacy. I had trust issues, worried that my money could be easily taken away, and I also doubted that machine communication could ever truly work for me. At the time, user interfaces were clunky, with limited options, and the overall experience felt impersonal. It was clear that improvements had to be made by making the app feel less of a machine and more of an extension of human interaction.

Despite my early apprehensions, I’ve come to realize that embracing digital banking is increasingly unavoidable. The world is heading toward a technological paradigm where digital transactions are no longer just an option but a necessity. That said, it is critical that digital literacy continues to grow across all age groups, enabling people to better protect themselves against incidents like the one that occurred over the weekend. Equally, the concept of digital sovereignty is also important, where humans --not machines-- remain in control. Technology must serve the individual, not the other way around.

While the incident over the weekend may be isolated, it cannot change the fact that it has raised serious concerns among both skeptics and loyal users of financial technology. At this point, developers of fintech applications must double their efforts to secure users' digital assets, even if it requires significant investment. In the long run, this investment will pay off. Regaining user trust and encouraging others to embrace these technologies will be a monumental achievement in itself. At the end of the day, we must all be extremely cautious with our digital security. Our most valuable assets today are not gold or property but the data we share through the tips of our fingers.