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Is cloud storage safe for mortgage companies?

by | Jul 30, 2021

With so much personal identifying information in the mortgage industry, it is more important than ever for companies to protect user data. When considering the storage of sensitive data, mortgage providers need to ask, is cloud storage safe? Indeed, there are always security risks to mitigate, but cloud security has many advantages over traditional storage methods. In fact, it’s essential for any tech-savvy mortgage company.

Common misconceptions about the safety of cloud services.

With mortgage companies handing so much personal identifying information (PII), many think that paper records and physical hardware are safer than the cloud.

However, data security is higher with cloud storage. The data is protected from unauthorized access with reliable encryption methods like two-factor authentication.

Another weakness with physical methods of storing data is that they are vulnerable in the event of a natural disaster like a fire, flood, or earthquake. The reality is that if a company’s local servers caught on fire and they didn’t have cloud backup, they would lose all their data.

Unlike cloud data, which is constantly updated to guard against security threats, external hard drives are also subject to corruption from the latest viruses.

Other advantages of cloud storage.

Cloud is scalable and cost-effective.

Businesses might be concerned that security is at risk if their customer base grows suddenly. However, with cloud services, growing companies can easily scale up servers when necessary. Traditional methods of storage need physical access to make changes or retrieve information. With cloud servers, organizations can make changes and retrieve information whenever and from wherever.

Because the cloud is scalable and easy to update, it is a much more cost-effective option than other methods that require expensive purchases or upkeep.

Recurring billing is more manageable than a one-time payment.

Cloud is often billed on a monthly or yearly basis, making the overall cost more manageable. Recurring billing is also less of a burden when companies are considering that there is no more need to worry about one lump sum for large amounts of data storage.

Access is more convenient for clients.

Users increasingly want to access their files from any device at any time. They also want to share files with others easily. Using storage in the cloud is great for this because it is available from anywhere with an internet connection and is much more convenient than USB drives or similar hardware.

Cloud infrastructure is a simpler backup solution.

By using cloud storage, companies can avoid the hassle of having to set up complicated backup infrastructure. And with no hardware, there is no need to worry about replacing it all if something is damaged. Companies can quickly switch or “failover” to another server if there is a problem. The virtual copy is also space-efficient because businesses only need as much room on their hard drive as is necessary. There is no need to have extra physical space in case the server runs out of room.

Cloud storage is easy to implement.

A company can be up and running with a cloud solution in just hours. There is no need to hire a separate team of experts to manage, migrate or set up the new infrastructure. Businesses can simply pay an hourly fee for use of the system. For many companies, this is an attractive option as they don’t have to make a huge investment for the future and can see how it is suited to their business.

How can mortgage companies ensure data security when using cloud servers?

Not all cloud storage providers offer the same features so it is important for companies to do some research and find the right solution for them. 

Capacity is an AI-powered mortgage support automation platform that employs the following security measures:

  • Mirroring existing permissions: Capacity mirrors the permissions already in existence in an organization so that it only provides documents to authorized users.
  • Keeping sensitive and personal data private: Capacity pulls up sensitive information like social security numbers or passwords every time a team member accesses it, rather than caching it in our server. This helps keeps personal information private.
  • Helping businesses comply with legislative requirements: Capacity is GDPR, CCPA, and SOC 2 compliant.

For more information about Capacity’s security features, read this guide.

What else can Capacity do?

Capacity is much more than a cloud storage service. We make loan teams more efficient and productive.

With Capacity’s chatbot functionality, mortgage companies can automate repetitive tasks that eat up valuable time. We also provide the technology to help businesses generate leads and reduce churn.

Capacity is completely scalable, so it is perfect for mortgage companies of any size.