Can Data Be Secure for Loan Payment Processing Software in the Cloud?

In today’s digital age, most information is easily accessible on the Internet. Innovations are constantly being made to make accessing data easier. Many companies are beginning to support something called “cloud storage.” Most simply put, cloud storage is a storage model where information is stored in virtualized pools of data over the Internet. These pools are usually hosted on the servers of a third party. The users can upload their information onto this company’s servers. In most cases, the company hosting this information will charge its users for this service. Cloud storage has identifiable benefits; but a very important question needs to be asked. Can lenders maintain the security and privacy of their borrowers’ data if they run their lending and mortgage servicing software in the cloud?

No doubt, being able to access your data from any computer with an Internet connection is very convenient. It is important to note that while convenient, storing loan servicing data in the cloud is not suitable for all users. What would happen if you were a lender, using cloud based software, and someone hacked into the server you are using to keep your data? That hacker now has access to every single bit of information your company has stored on those servers. Your clients, who value their privacy very highly, are now seriously jeopardized. The hacker can get access to your borrowers’ contact information. This information includes social security numbers, confidential financial information, credit reports, and terms of all your borrowers’ loans.

Our loan payment processing software is high secure

There can be serious financial and legal repercussions for being unable to safeguard your borrowers’ data. Installing loan payment processing software on local machines provides lenders with full control over the security and privacy of their customers’ information. Imagine that one day, an agency decides to request your customers’ data from your software vendor using a legitimate purpose as an excuse. There is little doubt that they can use any information they obtain to go on a finishing expedition and create bad publicity for your business and problems for your customers.

Similarly, many software companies make their software accessible via the cloud. This includes companies who develop loan processing software. These companies usually offer their loan software for a low monthly price. Paying a low price on a month-to-month basis may seem like a good deal in the beginning. However, installing loan processing software locally allows users to actually own their software rather than simply leasing it from software vendors. Imagine that the software company you are leasing your loan processing software from goes out of business. You would be at a complete loss. There are also no laws to protect you from the company increasing its prices to a level you cannot afford. Lastly, there is no guarantee that remotely installed software is going to be maintained indefinitely. Lenders can be put in a terrible position where they suddenly discover that the entire back office of their operations is gone because the software becomes unsupported.

Keep your security with loan servicing software!

Lenders should consider all these issues when making a decision to purchase loan payment processing software. Loan Assistant is an example of locally installed format which may be advantageous to many small and medium companies if keeping the security, privacy, and integrity of your clients’ data is important for your business.