Key Security Features That Make Loan Management Software Unbreachable

The lending industry is a beacon for cybercrime. This is mainly due to the sensitive financial data lenders handle daily. So, as a lender, it is your responsibility to uphold the trust your borrowers have in you. 

I realize this is easier said than done but also obligatory. Let me put that into perspective:

This highlights the need for strong security standards particularly in the hosting environment of a Loan Management Software. As financial institutions increasingly rely on cloud-hosted servers, the need for robust, multi-layered security measures becomes even more pressing. Cloud environments, while offering flexibility and scalability, also introduce new vulnerabilities that must be meticulously managed. 

So, if you are wondering what are the security features that guarantee security of all your loan data, then this blog is for you. I’ll walk you through the 6 key security features that make Loan Management and Servicing Software unbreachable.

6 Key Security Features to Look for In a Loan Management Software

Encryption is the cornerstone of data security in any software handling sensitive information. For loan management software, robust encryption is essential to protect data both at rest and in transit. A highly secured loan servicing and management software will have the following encryption standards:

• Data Encryption at Rest: All data stored within the loan management system, including customer information, loan documents, and financial records, should be encrypted using Transparent Data Encryption (TDE) with 256-bit Advanced Encryption Standard (AES). TDE ensures that the data and its encryption keys are automatically encrypted and decrypted within the database engine. This protects against unauthorized access and ensures compliance with security standards.

• Data Encryption in Transit: When data is transmitted over networks, it is vulnerable to interception. Loan Management Software should use Transport Layer Security (TLS) protocols, such as TLS 1.3, which provide strong encryption for data in transit. This ensures that all information exchanged between users and the system, such as loan applications, personal data, and payment information, is encrypted and secure from eavesdropping or tampering.
  
  
• HTTPS and HSTS: The software must enforce HTTPS (Hypertext Transfer Protocol Secure) across all web interfaces. HTTPS ensures that data exchanged between the client’s browser and the server is encrypted using TLS, adding an essential layer of security. Additionally, implementing HTTP Strict Transport Security (HSTS) ensures that browsers interact only with the software over HTTPS, preventing protocol downgrade attacks and reducing the risk of data interception.

• Encrypted Payment Gateways: Payment gateways integrated within the software should follow strong encryption standards, such as those outlined by the Payment Card Industry Data Security Standard (PCI DSS). This includes encrypting payment card information with 256-bit AES and utilizing tokenization techniques, which replace sensitive data with unique, non-sensitive identifiers. These measures ensure that even if data is intercepted, it remains unusable.

Two-factor authentication (2FA) is a security feature that requires users to provide two forms of verification before gaining access to their profile or the software’s admin panel.

Typically, this involves:

• Something the user knows (a password)
• Something the user has (a one-time code sent to their phone or generated by an authentication app)

2FA enhances security by adding an extra layer of protection. It makes it much harder for hackers to access accounts, even with stolen login credentials. 

So, 2FA not only protects sensitive financial data but prevents fraud and ensures compliance.

RBAC is a method of restricting access to the loan servicing and management software based on the roles of individual users within the lender’s organization. In RBAC, permissions to perform certain operations are assigned to specific roles rather than individual users, and users are assigned to roles based on their responsibilities.

RBAC reduces the risk of unauthorized access to sensitive data and key software functions. It does this by limiting access to only what is necessary for a user’s role.

An Intrusion Detection and Prevention System (IDPS) safeguards your software against hacking attempts, including Distributed Denial of Service (DDoS) attacks and other malicious activities. This is implemented in a number of ways:

• Anomaly Detection: IDPS employs machine learning algorithms to detect unusual patterns of behavior within the system. For instance, multiple failed login attempts from a single IP address could indicate a brute force attack. When such anomalies are detected, the system can automatically trigger alerts and block suspicious activities.
  
  
• Real-Time Monitoring: Continuous monitoring of network traffic and system activities enables the rapid identification of potential threats. Real-time alerts allow administrators to respond immediately to any intrusion attempts, preventing them from escalating.
  
  
• DDoS Protection: DDoS attacks overwhelm the software with traffic and cause service disruptions. To prevent this, loan management software should include advanced DDoS protection. This may involve filtering traffic through a content delivery network (CDN) or using rate limiting to manage the flow of requests.

Loan management software often uses APIs to integrate with external services. These include payment gateways, credit bureaus, and other third-party systems. So, the software provider must implement strong API security measures. 

A Loan Management and Servicing Software secures its APIs by:

• Encryption: All data exchanged via APIs is encrypted in transit using HTTPS. This protects it from interception or tampering.
  
  
• API Authentication and Authorization: APIs have strong authentication and authorization. This ensures only authorized users and apps can access them. It includes the use of OAuth tokens, API keys, or JWT (JSON Web Tokens).
  
  
• Rate Limiting and Throttling: Rate limiting and throttling are implemented to protect APIs from abuse. This includes DoS attacks or excessive API calls, which can degrade performance or compromise security.

Business continuity and disaster management are essential to ensure that the software remains operational even in the face of unexpected disruptions, such as cyberattacks, natural disasters, or system failures. This includes periodic data backup and recovery with 99.99% system uptime guarantee. 

A secure loan servicing solution ensures the software auto-backups all critical data. This includes customer information, loan records, and transaction logs. These backups are encrypted both at rest and in transit. This prevents unauthorized access even if the backup media is compromised.

Disaster recovery goes hand-in-hand with backups. It focuses on restoring normal operations as quickly as possible following a disruption. This includes having data recovery protocols and alternate communication channels in place.

A major part of business continuity is implementing redundant systems and failover mechanisms. This includes duplicating key components such as servers, databases, and network connections so that if one fails, another can take over without interrupting service.

Bryt’s Security Features That Make Your Data Unbreachable

Your data is your business’s lifeblood. It’s irreplaceable and invaluable. That’s why we built Bryt on one of the most secure cloud computing platforms, i.e., Microsoft Azure. With Azure’s security and our expertise, we have created a solution that protects your most sensitive data from data breaches. 

Check out our security features: 

• Column Level Encryption: Bryt uses more than just AES-256 bit encryption. It encrypts sensitive data at the column level in a database for enhanced security. This means that the data will remain encrypted even if the database is compromised. This will significantly reduce the risk of data breaches.
  
  
• Data Redundancy within SQL Database: With Microsoft Azure’s SQL service, we ensure that all data is stored securely in multiple zones. This makes it easy to recover in case of an outage or deletion of the primary database.
  
  
• Data Recovery Testing: We regularly restore cloud-hosted databases to our local devices so as to validate our data recovery capabilities. This rigorous testing validates that our data recovery processes can restore data accurately and efficiently in the event of loss or corruption.

• Business Continuity with Point-in-time Data Restoration: With Microsoft Azure’s point-in-time data recovery feature, you can recover your data to an error-free state within the past 35 days. It ensures business continuity even in the case of data corruption, accidental deletion, or a ransomware attack.
  
• 99.95% System Uptime: With Microsoft Azure’s 99.95% SLA, Bryt ensures you continue to serve your customers non-stop. No more worrying about downtime and business interruption. 

• 2FA: You can use 2FA to add an extra layer of security. This will require users to use two forms of identification to access an account.
  
  
• Role-Based Access Control (RBAC): RBAC ensures that users have access only to the data and functions they need to perform their jobs. By assigning roles and permissions, Bryt helps prevent unauthorized access and data leaks.
  
  
• Forcing HTTPS: HTTPS encrypts data transmitted between a website and a user’s browser. By forcing HTTPS, Bryt ensures that all data exchanged is protected, preventing unauthorized access and tampering. This is essential for safeguarding sensitive information.

Ready to experience the Bryt difference? Contact us today to learn how our security features can protect your sensitive data.

Bob Schulte

About Bob Schulte

Bob Schulte, CEO, Bryt Software is the visionary leader behind Bryt’s groundbreaking approach to loan management. With 30+ years of experience in the SaaS industry and an impressive 25 experience years of education, Bob brings diverse SaaS expertise to the table. He is known for his innovative approaches and commitment...