All You Need to Know Before Sharing Your Data with Online Lending Services

Financial technology is vastly advanced nowadays, aiding small businesses to improve their processes by supporting accounting software, online lending services, payment apps, and up-to-date bookkeeping.

However, with the expansive financial technology development come numerous concerns and security-connected issues. Sensitive data becomes the top target of scammers and hackers the more it is exposed to online servers.

Remember, reputable financial services, such as online lending companies, have high-security systems, so it’s less likely your sensitive data will leak. However, you must do your homework and inspect the following aspects before sharing your sensitive financial data with any online lending sites.

Data Security Measures

Online financial services must apply an entire net of protective measures to secure your data. A multi-protective layer of protection is usually a top priority for software and online lenders, P2P (person to person) payments, investment apps, and other online financial services. These are the security measures to look for in an online lending company:

• Encryption: Search for a company that uses encryption to code sensitive data and protect it from scammers. If you’re not a technology geek, ask someone you trust to check this for you, but don’t skip this step for your own sake.

• Use the Latest Version: If a financial app is what you use for your small business, make sure to have all the latest downloads. These companies offer constant updates because they enhance security methods. Don’t be lazy when an update button pops up on your screen; click on it and wait for the download to finish before using the app again.

• Two-Step Authentication: If you want to prevent unauthorized account access, use two-factor authentication. Some financial apps even offer multi-factor authentication, which provides more security. Do not trust sites that don’t have security measures and don’t verify your identity. That means that anyone could enter your information and login into your account.

• Secure Connection: Never type in the passwords in public networks and unsecured sites. Only use official apps that you can prove real by asking other users. Also, connect to secure networks if you need to check your status while far from your desktop. Hackers and scammers are preying on careless people who trust any site with their info, so don’t become one of their multiple victims.

Company’s Reputation

Have in mind to check the reputation of the financial service provider you want to engage with. Whether it’s a private online lender, a financial app, or a company, there must be reviews and user testimonials about its service. Also, check for reviews on third-party websites to get a more realistic picture, as some scamming financers have fake positive reviews that misguide users.

If you can find extra information about the financial service provider from someone who has already worked with them, even better. Remember that word-of-mouth marketing is one of the best practices to find a trustworthy service in any field. However, checking financial services’ reputation requires an advanced level of precaution, so take this research seriously.

Why You’re Sharing Sensitive Data

The financial service software of any type must disclose the reasons for requiring your sensitive data. Whether it’s a bookkeeping app, an online lender, or a company, you must know why you’re sharing your data with that party. If it’s an accountant app, for example, it requires your business bank account details in order to analyze your finances and create reports.

Online lenders need to check your business finances and other documents to see if they fit the loan requirements but don’t have access to your bank account. Make sure to know why and what kind of information you’re sharing with the other party. In case you’re feeling uncomfortable at any moment of the signing process or the financial service provider refuses to answer your questions, that’s a red flag that you should stop the process and find a trustworthy financial service.

How Your Information Is Stored

Every financial service provider has a different privacy policy section where you can examine how your information is stored and what is the level of security. Some only protect sensitive data for a certain period, so it really depends on each financial provider to determine whether your financial details are secure for the entire time while using the same service. Remember, do not only glance through the tiny-letter “Privacy Policy” section but take the time to actually read it to get familiar with all the conditions.

Whether Your Information Will Be Shared

Some financial providing services pair with third-party companies for enhancing the security of the users’ data. Many financial services do this to improve user experience and provide better security. However, there are also financial companies that share your information with third parties with malicious intentions to manipulate your funds.

Reliable financing companies and online lenders are obliged to inform you if sharing your banking information with a third party. Then, even though you trust your online lender or financial app, make sure to research the reputation of the third party as well. You need to know who you’re signing a contract with and what does that mean for the future of your business.

Online business lenders can be a sensitive and risky option if you don’t know what factors to look for when choosing your financial service provider. Fortunately, more and more people are using these services and sharing their experiences online, so if you spend some extra time, you can find all the necessary information on any online lender company. If you don’t consider all the aspects we’re suggesting, you might make an epic mistake venturing into a dubious business.

Are Online Lending Businesses Safe?

In the end, there are plenty of reliable and trustworthy online financial services with sensitive data protection as a top priority. These services work for clients’ best interest, helping small businesses develop in a positive direction and accomplish high goals in a record time.

Remember, your sensitive data protection comes first when choosing an online business lender for your company. Do your due diligence and research the potential candidates to the bone before signing up for a loan or any financial support.

If you are on the market for a business loan, real estate investment, or personal loan you can trust the experts at GoKapital, your information will be protected by our state-of-the-art technology.