Suppose you’re interested in using modern technology’s most progressive, efficient methods to apply for online loans or pay off a mortgage. In that case, you’ll want to know about the online loan companies making Fintech more secure.
Companies like Above Lending, Morty, and Enova utilize security measures like encrypted data and security AIs, which allow their fintech processes to have every chance of remaining protected from cybercriminals.
In this article, we’ll not only cover the applications of Fintech, but which companies are using them and how they are making Fintech’s way of getting loans and mortgages safe and secure for clients.
What is Fintech?
Before we can understand the value of companies making great strides in safer Fintech, we’d better understand what Fintech is.
Fintech is an abbreviation for “financial technology,” and it encompasses anything that falls under the practical banner of new technology that automates and streamlines financial services, such as loan and payment transfers.
Some of the things that Fintech utilizes in its goal to help entrepreneurs manage their finances more easily include algorithms and unique software. One of the most popular things about Fintech is that it cuts out the middleman of big entities, like credit card companies, to give consumers more direct control over their funds.
Some of the applications of Fintech include:
- Peer-to-Peer Lending Apps – Peer-to-peer lending apps are also called P2P apps. They connect individuals with investors. The apps, used as platforms, gain revenue from the fees charged to investors and borrowers.
- Investing Apps – Investing apps allow clients to organize how they’d like to set up their investments, allowing them to trade securities and stocks or even buy ETFs and stocks themselves.
- Cryptocurrency Apps – Cryptocurrency apps are made to assist clients in checking the wide variety of crypto they can invest in, like bitcoin. These platforms also sometimes offer clients a way to purchase more crypto or trade it with others looking to break into the bold new world of digital spending.
- Payment Apps – The world is full of payment apps. Some notable varieties, which may appear later in this article, are Apple Pay, Samsung Pay, Venmo, and PayPal. The fintech versions of these apps cut out the old-fashioned need to write a check or transfer funds through the bank, allowing clients the freedom to do it themselves.
- Robo Advisors – Robo Advisors sound like something out of science fiction, but they’re very real and valuable in Fintech! Robo Advisors can be found online or on an application platform, and they use algorithms to make indexing finances more automated. In addition, Robo Advisors are known for needing very little human help!
Why Fintech Needs to Stay Secure
While all the above applications are useful and wildly popular, they can’t work without using customers’ private data. Especially when this data has to do with one’s carefully saved money, it must remain secure.
Unfortunately, Fintech’s close work with financial data makes it a mark of interest to nefarious hackers and other criminals patrolling the web for weak spots.
Luckily, some online loan companies know the value of Fintech and are willing to work to make their use more secure. Read on to discover the best online loan companies that make using these applications safer for clients looking to streamline their financial services!
What Are the Online Loan Companies Making Fintech More Secure?
Now that we accurately understand Fintech and its primary uses, we can celebrate the online loan companies restoring Fintech’s safety while being used. Below is our list of five of these stellar companies:
- Above Lending
Let’s take a closer look at how each of these companies is forging a safer path into things like mortgages and personal loans secure.
Morty is a broker of mortgages located in New York.
According to their website, Morty serves those buying a second house, a primary home, or a home they can invest in. While they can’t directly lend money, Morty has very low rates and can support refinance transactions and home purchases.
Even though Morty’s website is easy to understand and use, and they have excellent customer service, and an FAQ section, one of the most important things they do is keep fintech processes safe.
Regular banks use actual dollars and other types of physical, traditional currency. Morty, on the other hand, utilizes something called a blockchain. Blockchain is one of the aspects of security used in Fintech. It is a type of ledger-distribution tech.
Blockchain earned that distinction by storing all information fed to it in multiple nodes spread across a network rather than in a single less-secure location, such as a single computer.
One of the greatest things about Morty’s use of blockchain is that not only is the financial information stored in more than one secure location, but it is all encrypted. As a result, changes to the data are passed along through every location, making hacking into it for criminal purposes extremely difficult!
Therefore, thanks to Morty, funds for mortgages brokered through Fintech are secure without losing efficiency.
2. Above Lending
Above lending is a company where customers can easily consolidate the process it takes to apply for and receive various loans. Their simple and painless applications make them even more popular with customers because you can make payments for those loans in one easy location.
However, what makes Above Lending outstanding is also what could potentially leave clients’ funds susceptible to criminal hackers. The online process does make them technically an efficient branch of Fintech, which must still be safeguarded against this type of thing.
According to its website, Enova has over 6 million customers and has distributed over $40 billion in funds. Located in Chicago but employing many around the U.S., they are an online financial lender that extends its offerings to smaller businesses and individuals. Those offerings include lines of credit and customizable loans.
Enova also extends its reach into other brands, such as NetCredit and CashNetUsa. Most of the company’s charm comes from looking out for the little guy instead of only lending money to big corporations.
The way that Enova protects the security of its fintech processes is through artificial intelligence. According to their blog, AI is used in product offers extended to clients, supporting the process of applying for loans and streamlining customer service.
This is useful for those with bad credit scores who need a loan. Still, artificial intelligence systems are programmed to flag any data packets containing viruses and block intruders from accessing a customer’s sensitive financial information!
Having a digital guardian like an AI is one of Enova’s proactive solutions to the hackers that try and make using Fintech unsafe.
Cloudvirga is a California-based mortgage platform that is entirely digital, making it one of the best examples of Fintech in the United States. Cloudvirga allows lenders to get quotes efficiently and quickly from those they’re lending to and team up with borrowers to work out a payment plan that is right for them.
Cloudvirga is known for cutting costs by streamlining tasks that an administrator would usually need to do. For example, it is a great way to work through the sometimes tricky process of paying off a mortgage.
Cloudvirga uses an Intelligent Mortgage Platform, or “iMP,” to secure the data customers supply them with. It is described as a security solution that covers all the bases, transmitting every document using HTTPS Transport Layer Security.
Transport Layer Security encrypts data specifically when traveling from one location to another, like when an important document is downloaded or uploaded. This way, when information is most prone to opportunistic hackers, it is constantly changed to foil their actions!
Affirm is a company that created a lending platform focused on providing small installment payment plans for those who make online purchases. One of the most enticing features offered by this fintech platform is the low rates, which bottom out at 0 percent.
Another is the plans offered by Affirm for payment, flexibly extending anything from a three-month to a three-year payment plan. Thanks to Affirm, customers can buy vacation packages, the newest game or sound system, or even furniture and pay for it over time.
How does this fintech platform protect customers’ sensitive data as they borrow and make payments? Transport Layer Security, according to the Affirm website’s Help Center, is used to encrypt all information as it travels from customers to the company.
Not only that but Affirm also restricts people’s access to data by removing encryption keys to a secure facility. Instead, customers must set up and pass a multi-factor authentication process to access their data.
Lastly, Affirm employees not only go through a thorough background check, but they are also only allowed to do exact, specific jobs when handling a client’s data and only when the client asks them to.
In conclusion, Fintech’s efficiency and popularity do not always leave it open to hackers and cybercriminals. Thanks to proactive measures taken by online loan companies like Enova and Affirm, the data of those using Fintech is secure. Whether using AIs to screen for viruses or encryption security countermeasures, these loan companies keep Fintech safe!