You are tasked with designing a new backend architecture for a cloud-based application that handles sensitive user data. What considerations would you take into account regarding data security and compliance? How would you structure the application to enhance these factors?

``` Considerations include encryption at rest and in transit, compliance with data protection regulations (e.g., GDPR, HIPAA), and implementing access controls and audit logs. The application would be structured using microservices to isolate functions and protect user data more effectively. ```