How Equixly helps Financial Institutions secure their APIs

APIs have transformed mobile, banking, wealth management, and insurance services by offering real-time information, mobile first experiences, and more intuitive solutions for customers. However, this ease of connectivity and integration also brings about security risks. Growing system interconnectivity at its core changes the threat landscape and makes security a key focus during the entire API development and management lifecycle.

The Importance of Security by Design

"Security by design" means embedding protective measures throughout the entire API development process. This proactive approach helps identify and eliminate vulnerabilities early while ensuring compliance with regulations like NIS2, GDPR, and DORA, which emphasize data security, operational resilience, and effective incident response. DORA, in particular, forces financial institutions to strengthen their ability to withstand and recover from cyber incidents—capabilities that robust API security inherently provides.

Traditional tools like Web Application Firewalls and API gateways have limited effectiveness for modern APIs, as they struggle to detect complex business logic flaws, a leading cause of financial fraud. Security by design reduces reliance on such perimeter defenses by focusing on building resilient systems from the start. For instance, strict authentication controls help prevent account compromises and data leaks.

A key component of this strategy is security testing before production. Integrating testing early in the software development life cycle not only strengthens defenses but also ensures compliance.

Two Real-World Examples in Which Equixly is Shaping API Security Testing in Financial Services

The first example demonstrates how a major financial institution automated the testing of more than 700 APIs over various projects, getting new test results within a couple of hours using Equixly API Security . This periodic testing ensures that their applications are safe and meet industry standards in case of any new releases. Identifying business logic flaws, highly critical in averting fraud, was also part of the approach designed by the institution. By embedding this level of testing directly into their CI/CD pipelines, they have drastically reduced the time to detect vulnerabilities and can deploy updates more frequently without compromising on security.

The second example is an Italian bank which leveraged Equixly's vulnerability event streams and integrated them into their SOC to better mitigate potential breaches. Each time a vulnerability is detected, it appears directly on their SOC's dashboard. This enables the level of real-time responses an institution needs in order to help protect sensitive financial data.

As cyber threats move forward, financial fraud prevention by using artificial intelligence is the dynamic solution to the problem. It can quickly determine if abnormal behavior could abuse the APIs, leveraging business logic gaps.

Understanding DORA's Impact

The Digital Operational Resilience Act (DORA) represents a shift in how financial institutions approach digital security and operational resilience. Coming into effect in January 2025, DORA established a framework that requires financial entities to implement robust ICT risk management systems, regularly test their digital operational resilience, and maintain consistent oversight of third-party technology providers.

The regulation sets specific requirements across multiple domains: financial firms must conduct regular penetration tests, report major incidents within strict timeframes, and maintain detailed documentation of all ICT third-party service providers. DORA also mandates periodic digital operational resilience testing programs that must include vulnerability assessments. By mandating these specific requirements for incident reporting, testing, and risk management, DORA pushes financial institutions beyond traditional compliance checkboxes. The regulation's emphasis on continuous monitoring and testing aligns perfectly with modern API security practices, making solutions like automated API testing not just beneficial but essential for maintaining compliance and operational resilience in the digital financial ecosystem.

Are You Ready?

Ready to strengthen your API security? Contact us today to learn how Equixly’s proactive testing solutions can protect your financial services infrastructure and ensure regulatory compliance.

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