Securing financial transactions: The convergence of federated learning and multi-cloud architecture in modern FinTech

Nellipudi, Soma Kiran Kumar (2025) Securing financial transactions: The convergence of federated learning and multi-cloud architecture in modern FinTech. World Journal of Advanced Engineering Technology and Sciences, 15 (3). pp. 721-730. ISSN 2582-8266

The financial technology sector is experiencing rapid transformation with increasing complexity in digital transactions and evolving security challenges. This transformation necessitates innovative solutions at the intersection of distributed computing and artificial intelligence. Federated learning emerges as a groundbreaking paradigm, enabling secure and private model training across multiple entities without centralizing sensitive data. The integration of federated learning with multi-cloud architectures offers enhanced scalability and resilience while presenting unique challenges in data heterogeneity and communication overhead. The implementation of advanced security techniques, including secure multi-party computation, homomorphic encryption, and differential privacy, strengthens the security framework while maintaining operational efficiency. The incorporation of explainable AI ensures transparency and regulatory compliance without compromising privacy. These technological advancements collectively represent a significant evolution in securing financial transactions while maintaining privacy, scalability, and efficiency in modern financial technology infrastructure. The convergence of these technologies enables financial institutions to address emerging threats while fostering innovation in service delivery, creating a robust foundation for the future of digital finance. The integration of advanced authentication mechanisms and real-time monitoring capabilities further enhances the security posture, ensuring resilient protection against sophisticated cyber threats while maintaining seamless customer experiences across diverse financial services.