Using Data Analytics to Determine if a Fintech Site is Safe to Use

Data analytics technology has been very beneficial for many consumers around the world. You can use data mining and analytics technology to make more informed decisions about purchases that you intend to make.

One way that many people benefit from data analytics technology is that it can help them when they need to access financial services. They can use AI tools to figure out their chances of getting approved for a financial application, such as a loan or insurance policy. They can also use this technology to determine whether it is safe to use a particular Fintech website.

Data Analytics is Excellent for Assessing the Security of Online Fintech Sites

With a huge rise in scams during coronavirus, people need to be more vigilant than ever with the financial products they apply for and what websites they use. Data analytics technology can be very helpful here.

When searching for a fintech or financial product, you must always treat this with a cautious eye – and ensure that you are not giving your details or money to a fraudster or in the wrong hands.

Below we highlight some key tips to use data analytics when checking if a site is safe to use.

1. Look for the HTTPS in the URL of the website

The difference between HTTP and HTTPS is noticeable. The S indicates that the website itself is encrypted with security provided through an SSL certification. This certification protects sensitive data and information as it travels through a service. If a fintech website does not have this certification, it is possible that any data submitted is not secure and could easily be accessed by external parties.

You may use data mining technology to filter out websites when doing your research. There are also AI tools that can determine whether a site that supposedly has an HTTPS connection has an expired security certificate.

2. Check Contact Information

A legitimate lender should have some trust signals such as a physical address, phone number and email address available. These details do not mean the website has protection; however, it demonstrates to the borrower that it is possible to converse with someone if there are any issues and it is a proper bricks and mortar company.

Websites that do not offer physical addresses, company names or phone numbers are deliberately making themselves harder to get hold of and this could suggest that they are not a legitimate firm, although not always. You should definitely be wary of cell numbers or mobile numbers used as the main number, so this should not be the case for a thriving business.

Data mining technology can be especially important with this step. You can use data analytics tools to search the web for contact information that is posted elsewhere and see if it matches the content on the website.

3. Check External Reviews

There should always be some reviews available online of any potential fintech websites. Whilst some reviews will be positive, there may also be negative reviews which could give a fair balance and suggest it is real. 

You will need to be critical here. If all the reviews are good, this could suggest something is up, and if they are all bad, you should probably avoid. But something in the middle is probably about right.

This might be the most important benefit of data analytics technology when vetting a fintech site. You can use these tools to search for other reviews more easily.

4. Check For Regulation and Terms

Whilst not all types of fintech companies require regulation, the vast majority of them do, including personal loans and business loans. Check for any regulation on the footer of the website and the terms and conditions. You can also check the SEC or FCA register to see if a company is registered to trade and offer their product legitimately.

5. Never Agree to Paying Money Upfront

Scams and illegitimate sites will often ask for money upfront or an ‘admin fee’ to process your application. There may be promises that once you make a fee or two that your entire application will be processed, but there are no legitimate Fintech products that should be offering this. If the website asks for money upfront, avoid it at all costs!

6. Look Out for Particular Language

There are some words that are used to attract customers but something should never be too good to be true.

Avoid words like ‘guaranteed’ and ‘100% approval’ – since every customer’s application should still be subject to credit checks and other affordability measures.

Data analytics tools can help you search for phrases and terms that you want to weed out.

7. Other Trust Signals

There are some other trust signals to look out. For instance, is there an ‘about us’ page and a full team of members? This would suggest a real company. Does the website just use stock images or can you find these staff members on Linkedin or across the website?

Looking at an example of a well-trusted website, Pheabs, it is clear that there are reviews, well written content, the founder of the company speaking to you through a video and a dedicated team page. Plus, clear terms and conditions that highlight the terms of the fintech site and make it clear for the customer.

Other things such as verification badges and a website that works well are all indications that it is a trusted site. If you find spelling errors or the page looks like it is not working properly, this could be a reason to stay clear.

Trust signals are other factors that data analytics tools can help you vet sites that offer financial services.

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