Myth 2: security of a cloud-based platform is unproven

1 Nov 2021

Is SaaS secure? That’s a common question, especially for secured finance lenders. They want to make sure their data and the SaaS applications they leverage as critical to their business are safe and secure – for their internal users and the customers they serve.

And the answer is yes.

SaaS is no longer a new and emerging technology. It’s a lot more common than some people realize. In fact, you are more than likely interacting with a SaaS solution in the cloud every single day – Salesforce, LinkedIn, Office 365, JIRA, Slack, Zoom, etc. Those are all examples of SaaS in the cloud.

The better question to ask is how does your specific SaaS loan origination software provider handle security in the cloud? Understanding how your SaaS provider approaches security will provide you peace of mind.

And if your SaaS provider conducts third-party audit validation assessments, like System and Organization Controls (SOC), that’s a great indicator of their security posture. SOC is a set of guidelines generated by the American Institute of Certified Public Accountants (AICPA) that ensures financial organizations’ security, availability, confidentiality, and process integrity.

Trust is the foundation in any relationship. Here at Solifi (formerly IDS), we believe completing the rigorous SOC examinations for our loan origination software provides transparency of our ongoing commitment to ensuring our customers’ data and their customers’ data are secure. It is through this effort that we work to maintain the trust placed in us. To learn more about SOC, please see a related post: What is SOC and why is it important for cloud computing.

A SaaS provider that partners with a reputable and large cloud technology partner like AWS is in your best interest. That’s because they’ve already made those investments in robust technology and services, and their security policies and procedures are proven. So it allows you to leverage what they’re already doing more quickly and affordably – lower IT costs and scale quickly with a faster time to value. It would be difficult for any single organization in secured finance to do these types of things these providers are already doing and do it well and as fast.

Again, the security of a cloud-based platform and SaaS-enabled applications is not unproven. It’s more about becoming educated on what questions to ask, so you understand and are comfortable with how your SaaS loan origination software provider handles and approaches security in the cloud.