Suppose you want to use the most advanced and efficient methods of modern technology to apply online loans or pay off a mortgage. Then you’ll want to learn more about online lending companies that are making fintech safer.
Companies like Above Lending, Morty, and Enova use security measures such as encrypted data and security AIs, which give their fintech processes every chance to stay protected from cybercriminals.
In this article, we will not only cover fintech applications, but also the companies that use them and how they make the way in which fintech obtains safe and secure loans and mortgages for customers.
What is Fintech?
Before we can understand the value of companies making great strides in safer fintech, we better understand what fintech is.
Fintech is short for “financial technology” and encompasses everything that falls under the practical banner of new technology that automates and streamlines financial services, such as loan transfers and payments.
Some of the things Fintech uses in its aim to help entrepreneurs manage their finances more easily include unique algorithms and software. One of the most popular things about Fintech is that it cuts out the middleman from large entities, like credit card companies, to give consumers more direct control over their funds.
Some of the fintech applications 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, earn revenue from fees charged to investors and borrowers.
- Investment apps – Investment apps allow clients to organize how they want to set up their investments, allowing them to trade securities and stocks or even buy ETFs and stocks themselves.
- Cryptocurrency apps – Cryptocurrency apps are designed to help customers verify the wide variety of crypto they can invest in, such as bitcoin. These platforms also sometimes offer customers a way to buy more crypto or trade it with others looking to enter the bold new world of digital spending.
- Payment apps – The world is full of payment applications. Some notable varieties, which may appear later in this article, are Apple Pay, Samsung Pay, Venmo, and PayPal. Fintech versions of these apps eliminate the traditional need to write a check or transfer funds through the bank, allowing customers to do it themselves.
- Robo advisors – Robo Advisors look like something out of science fiction, but they are very real and valuable in Fintech! Robo Advisors can be found online or on an app platform, and they use algorithms to make financial indexing more automated. Additionally, Robo Advisors are known to need very little human help!
Why fintech needs to stay secure
Although all the above apps are useful and very popular, they cannot work without using customers’ private data. Especially when this data relates to carefully saved money, it must stay safe.
Unfortunately, Fintech’s close work with financial data makes it a mark of interest for nefarious hackers and other criminals scouring the web for weak spots.
Fortunately, some online lending companies know the value of fintech and are willing to work to make it safer to use. Read on to learn about the best online loan companies that make using these apps safer for customers looking to streamline their financial services!
Which online lending companies are making fintech safer?
Now that we have an accurate understanding of fintech and its main uses, we can celebrate the online lending companies that have restored fintech security when using it. Below is our list of five such stellar companies:
- Above the loan
- To affirm
Let’s take a closer look at how each of these companies navigates a safer path to things like mortgages and secured personal loans.
Morty is a mortgage broker located in New York.
According to their website, Morty serves those buying a second home, primary residence, or home they can invest in. Although they cannot lend money directly, 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 great customer service and an FAQ section, one of the most important things they do is keep the process secure. fintech.
Regular banks use real dollars and other types of traditional physical currency. Morty, on the other hand, uses something called a chain of blocks. Blockchain is one of the aspects of security used in Fintech. It is a type of ledger distribution technology.
Blockchain has earned this distinction by storing all information passed 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 financial information stored in more than one secure location, but it’s all encrypted. As a result, changes to data are transmitted to all locations, making it extremely difficult to hack for criminal purposes!
Therefore, thanks to Morty, funds for mortgage loans traded through Fintech are secured without loss of efficiency.
2. Above the loan
Above Lending is a business where customers can easily consolidate the process needed 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 these loans in one easy place.
However, what makes Above Lending exceptional is also what could potentially make client funds vulnerable to hackers. The online process technically makes it an efficient branch of Fintech, which still needs to be protected against this sort of thing.
According to its website, Enova has over 6 million customers and has distributed over $40 billion in funds. Based in Chicago but employing many people in the United States, it is an online financial lender that extends its offerings to small businesses and individuals. These offers include lines of credit and customizable loans.
Enova is also expanding its reach to other brands, such as NetCredit and CashNetUsa. Most of the charm of the company comes from the fact that it takes care of the little guy instead of only lending money to big corporations.
The way Enova protects the security of its fintech processes is through artificial intelligence. According to their blog, AI is used in product offerings to customers, supporting the loan application process and streamlining customer service.
This is useful for those who have bad credit ratings and need a loan. Yet artificial intelligence systems are programmed to flag any data packets that contain viruses and prevent intruders from accessing a customer’s sensitive financial information!
Having a digital guardian like an AI is one of Enova’s proactive solutions to hackers trying to make using Fintech unsafe.
Cloudvirga is an all-digital mortgage platform based in California, making it one of the best examples of Fintech in the United States. Cloudvirga enables lenders to efficiently and quickly obtain quotes from those they lend to and team up with borrowers to build a payment plan that works for them.
Cloudvirga is known for reducing costs by streamlining the tasks an administrator would typically perform. For example, it’s a great way to manage the sometimes tricky process of paying off a mortgage.
Cloudvirga uses an Intelligent Mortgage Platform, or “iMP”, to secure the data customers provide to them. 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 as it moves from one location to another, such as when an important document is uploaded or downloaded. This way, when the information is most prone to opportunistic hackers, it is constantly modified to foil their actions!
Affirm is a company that created a lending platform focused on providing small installment payment plans for those who shop online. One of the most attractive features offered by this fintech platform is the low rates, which reach 0%.
Another is the plans Affirm offers for payment, flexibly extending anything from a three-month payment plan to a three-year payment plan. Through Affirm, customers can buy vacation packages, the latest game or sound system, or even furniture and pay for them over time.
How this fintech platform protects customers sensitive data when they borrow and make payments? According to the Help Center on Affirm’s website, Transport Layer Security 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 configure and pass a multi-factor authentication process to access their data.
Finally, Affirm employees not only go through a thorough background check, but they are also only authorized to perform precise and specific tasks when processing a customer’s data and only when the customer asks them to.
In conclusion, the efficiency and popularity of Fintech does not always leave it open to hackers and cybercriminals. Thanks to proactive measures taken by online lending companies like Enova and Affirm, the data of those using Fintech is secure. From using AIs to scan for viruses to encryption security countermeasures, these lending companies have Fintech protected!