Fintech Software Audits: Why Financial Products Need Security & Privacy Audit

In fintech, trust, compliance, and performance are critical. If you are building a payment platform or a banking solution, a detailed technology audit is essential. It ensures your product is reliable, secure, and compliant.

This article explains why fintech audits matter and what they include.

What Is a Technology Audit in Fintech?

A technology audit is a structured review of your financial software. It covers systems, third-party integrations, data security, and compliance. It helps ensure that your tools like Plaid, Stripe, or banking APIs work as expected and follow regulations.

Technology audits are often part of larger auditing and assurance services frameworks. These frameworks are recommended by firms like Deloitte and EY.

Audit Type	What It Covers
Fintech Audit	Full review of product architecture, tech stack, performance, and risks.
Stripe Audit	Examines payment flows, webhook handling, and settlement accuracy.
Plaid Audit	Checks token security, API usage, and account aggregation flows.
Technology Audit	Validates tech architecture, dev practices, and infrastructure.
System Audit	Reviews system workflows, automation, and data flow integrity.
Information Systems Audit	Focus on internal controls, access, and IT policies.
Security Audit	Includes penetration testing, encryption review, and API security.
Banking Integration Audit	Checks banking APIs like UPI, SEPA, ACH, and their error handling.
Payment Integration Audit	Evaluates gateway setup (e.g. Razorpay, Cashfree) for accuracy and speed.
Technical Audit	In-depth source code, deployment flow, and infra review.

A fintech integration audit confirms that these services work smoothly. It also checks if your product is handling errors, webhooks, and fallbacks correctly.

For example, a Plaid audit may show that token handling is outdated. A Stripe audit may find webhook failures that delay balance updates.

Information System and Security Audit

Security is a top priority for financial products. Regulations like PCI DSS, SOC 2, and ISO 27001 require specific safeguards.

A proper Information System Audit checks:

• How data is stored and encrypted

• If access to systems is restricted by role

• Whether your cloud environment is misconfigured

• If API endpoints are protected

• If logs are stored, monitored, and audited

Learn more from the ISACA Information Systems Audit Standards.

Real-Life Example: Banking Application Audit

A neobank recently went through a system audit. The audit found:

• Bank APIs were returning detailed error messages, risking data leakage

• Failed payment logs were missing critical metadata

• Stripe webhook acknowledgements were delayed by several seconds

These issues were fixed. The product team updated their error handling and improved logging. They also followed better webhook monitoring practices. The audit made the platform more reliable and audit-ready.

Our Approach to Technology Auditing at FintegrationFS

We specialize in technology audit services for fintech products. Our process includes:

• Reviewing cloud and backend setups

• Auditing Stripe, Plaid, and other payment integrations

• Testing API contracts and fallback flows

• Evaluating performance bottlenecks

• Validating architecture choices

We work closely with your product team. Our goal is to align tech audits with your business goals.

When Should You Schedule a Technology Audit?

Audits are useful in many stages:

• Before launch: to ensure all systems and payments are working properly

• After adding integrations: to validate third-party services

• Before regulatory checks: like RBI sandbox evaluation or FCA approval

• Annually: as part of an InfoSec review or compliance strategy

Fintech moves fast. A missed webhook or insecure API can result in lost revenue or regulatory fines. A well-timed audit is not just a safety measure—it is a strategic move.

If you want to reduce risks and improve your product’s resilience, consider a full-stack audit today.

VAPT: Vulnerability Assessment and Penetration Testing

VAPT is a critical part of any technical audit or system security audit. It helps identify weak points in your platform before hackers do.

• Vulnerability Assessment (VA): Scans your systems for known vulnerabilities.

• Penetration Testing (PT): Simulates real-world cyber attacks to test defences.

VAPT includes:

• OWASP Top 10 Testing (e.g., XSS, SQL Injection)

• Port scanning and firewall bypass testing

• Network layer and application layer assessments

• Reporting with risk severity and remediation steps

Tools like Burp Suite, Nessus, and Metasploit are often used.

Running VAPT quarterly or after major changes is a best practice.

Fractional Security Offering: vCISO and vSecOps

Not every fintech startup has an in-house security team. That is why Fractional Security or Virtual CISO (vCISO) services are rising.

With this model, you get expert security help without hiring full-time. These services typically include:

• Ongoing risk assessments

• Incident response planning

• Security policies and training

• Compliance readiness (RBI, SEBI, GDPR)

• Cloud security architecture review

• DevSecOps integration into CI/CD

This model helps startups and growth-stage companies maintain enterprise-grade security. Providers like CISO Platform or vCISO Services offer tailored plans.

You can also opt for a Fractional SecOps Pod, where a small external team monitors your logs, alerts, and performs security testing continuously.