Online loans and personal data: everything you need to know

We live in a digitized and online world. We are making more and more transactions through a mobile phone or device. However, the online world is still an unknown place, as we enter our personal data, access services, buy, hire, create users and passwords, etc. What happens to that data? What is the world of finance and lending doing to protect our information against the GDPR of the European Union?

Online loans and personal data: everything you need to know

Consent is the cornerstone, but treatment is the cornerstone

Online loans are one of the most transparent products on the market, since practically all the information is on the entity's website and is directly and accessible to any visitor.

It is mandatory that entities, financial or not, who want our data, collect them and request our explicit consent (by means of a box or an acceptance) to provide them. We must give that consent to obtain certain services.

It is especially important when it comes to accessing online loans without paperwork, since entities use personal data (ID, IBAN, etc.) to verify our identity and grant us financing.

Each entity must have terms and conditions and an updated privacy policy where it is also explained who is responsible for the processing of the data, what is the purpose of the same, and the user is reminded of their rights in this regard. The storage must be safe, reliable, and the data can only be used for the purposes consented to by the user. That is why you must be sure of the entity from which you are asking for a loan , that it is legal and protects these rights.

How long will my data be there? For what?

When we transfer our data to any financial institution, we must be aware of the use that is going to be given to them. They are normally used for internal analysis, concession capacity of the automated system, profiling, and for commercial purposes (advertising).

In general, online loan companies, or traditional banks, keep our data during the term of the loan or other financing product contracted. Subsequently, they are incorporated into a database that could be transferred to companies in the same network of entities or for other commercial or service improvement purposes.

Users have the right to access these data, rectify, oppose, limit or delete them by contacting the entity responsible for their treatment at any time.

Online loans and personal data: everything you need to know : 4.2 / 5 of 21 votes
Roger molins Jerome P Allison ( LinkedIn )
I am a freelance writer and consultant for companies and individuals, with a particular emphasis on fintech, technology, startups and online marketing. More information ...