Is my data is encrypted in the HANA database?

Yes, it is encrypted and SAP HANA supports data-at-rest encryption and application data encryption. Its encryption services enable encrypting data at rest, as well as an internal encryption service available to applications with data encryption requirements. It also uses hdbuserstore, a tool installed with SAP HANA client which stores all the connection information on the client making it secured when a client application connects with the HANA database.