Secured finance businesses make financial decisions all of the time, which includes figuring out what to invest in for the benefit of the company. Without a doubt, one of the things that secured finance businesses should never avoid investing in is cybersecurity. Some finance businesses make the mistake of assuming they can get away without it, but that can have dire consequences – learn more below.
Financial Loss
One of the most obvious consequences of not having a robust cybersecurity system in place is that it could lead to a significant financial loss. If a secured finance business is subject to a cyber hack, it could lose important data that drains the company of money to fix. In fact, cybercrime costs the world $10.5 Trillion every year – yes, you read that number right! For smaller finance businesses in particular, this risk can be particularly devastating, as it could lead to the company going bust altogether.
Disruptions
A secured finance business thrives when it can go through all the operational motions – from running credit checks to approving loans - smoothly and quickly. Hacking doesn't allow for that, which can cause serious problems. If a finance business is subject to cybercrime, there will be a sudden halt in its operations. For example, if data gets stolen, the business will need to focus on recovering that data rather than developing the business. Essentially, it means all processes grind to a halt, which can be devastating.
Reputation Damage
Secured finance businesses must put a lot of time and effort into creating a strong brand image. After all, customers are more likely to choose a loan from a brand they already know and trust. It can take a long time to build a reputable brand image like this, and even just one cyber attack can mean it all crumbles down.
Think about it – customers are not going to view a lender as trustworthy or reliable if their data gets leaked! Avoiding cybersecurity means running the risk of losing trust, something that most secured finance companies simply cannot afford.
The Best Ways to Protect a Secured Finance Business
It's clear how important cybersecurity is for the health of a secured finance business. So, what are the best methods for protection?
Investing in the Right Technology
The right technology makes a world of difference. Of course, there are specific cybersecurity technologies that can help protect all types of businesses, but that's not the only thing to think about. The platforms should also come with cybersecurity benefits that are already ingrained. For secured finance businesses, investing in a platform like Solifi's consumer finance software makes a significant difference. Not only does it provide the benefits of being a dedicated, fit-for-purpose consumer finance platform, but it also significantly reduces digital risk – especially regarding cybersecurity issues.
Training Staff
Did you know that human error accounts for a large chunk of cybersecurity breaches? It's true. The good news is that secured finance businesses can protect against it by simply training their staff well. They can become better protected by investing in a good training program that keeps everyone up to date with the most recent robust cybersecurity practices while also keeping up with training over the years as cybercrimes evolve.
Staying Aware
Cybersecurity risks don't stay the same all of the time. As the digital world grows more advanced, so do cybercriminals, which means secured finance businesses must stay vigilant and aware at all times, no matter what. Most finance businesses should update their cybersecurity systems if they haven't in about five years, as cybercriminals move fast and get stronger all of the time. The secured finance businesses that stay aware of the most common cybercrimes always have a better defense.
