Between 2017 and 2022, the banking industry in Canada grew by about 1.8% each year on average. In 2022 alone, this market increased in value by more than 12%. These days, the commercial banking market in Canada is worth more than $211 billion every single year!
As this industry continues to grow and mature, it also provides new services and benefits. If you have considered getting a loan, you might have heard about using online bank verification to qualify. However, many people have never heard about online bank verification and do not know how safe it is.
Understanding more about the online bank verification process can set your mind at ease and help you understand how it can help you qualify for a loan. The good news is that online bank verification processes also provide a number of benefits on the side. So what is online bank verification, and is it safe?
Read on to learn all about the most vital things to understand about online bank verification and the safety that it can provide!
What Is Bank Account Verification?
Online bank verification is a process that makes sure that money is going in and out of genuine bank accounts. This verification can provide lenders with the information they need to provide loans to people.
In the past, it would have been necessary to find a lender and then provide them with a long list of paper documents. After that, the lender would review those documents, analyze them, and come to a decision about providing you with a loan.
However, modern technology allows much of this process to be automated. Your bank can communicate directly with lenders to provide them with the same information you would have provided in paper documents in the past.
How Is Online Banking Verification Safe?
So what makes online bank verification such a safe way to meet personal loan requirements? The first thing to understand is that banks only agree to share information under stringent conditions.
For one thing, they require that the platforms they use to communicate with lending institutions use modern encryption tools. These tools make sure that no one can intercept your sensitive information while it is in transit.
These platforms have to go through intense testing before they can work with banks for online banking verification purposes.
Of course, you will still want to make sure that you trust the institution that you are considering receiving a loan from. However, if you are filling out a personal loan application with them, you have probably already decided that you can trust them.
Another testament to the safety of online bank verification is how popular it is. Lending institutions are not the only users of this powerful tool. Credit unions and credit bureaus also rely on the safety of online bank verification.
Many employers and landlords will also use similar processes to help them manage their own operations. Other users of online bank verification include credit card companies and mortgage lenders.
The Benefits of Online Bank Verification
Along with providing safety, online bank verification can also decrease mistakes. When people analyze paper forms, there is always the chance that they will commit an error.
In some cases, that error can keep you from qualifying for a loan at all. In other cases, it can slow down the application process. That can cause a lot of trouble if you are looking for ways to receive funds quickly.
In other cases, human errors during the loan application process can lead to you receiving a higher interest rate than you should.
All of these problems can be avoided by using online bank verification tools. These tools are much more reliable than people when it comes to attention to detail.
Online bank verification is also an effective way to protect everyone involved from the possibility of fraud. Providing encryption for your sensitive information means that even if someone manages to access it, they will not be able to de-encrypt it.
Using online bank verification also helps lenders feel sure that you are not a potential fraud threat. In some cases, this extra assurance can provide you with lower rates on your loan.
Lenders have to worry about things like complying with money laundering regulations. Online bank verification can help them comply with such regulations automatically.
That can allow them to provide loans without having to spend as much time and effort on compliance. That can help them cut costs and provide loans at lower rates as well.
Saving Time and Effort
Of course, one of the biggest advantages of online bank verification is that it is faster. When you need to prove your bank account ownership, you probably don’t want to go to the trouble of putting together a long list of documents. That goes double if you then have to take those documents to a physical location.
If anything happens to be wrong with your documents, that can add further delays and work to the verification process. On the other hand, you can use online bank account verification tools to cut this whole process down to a few minutes.
Understand the Safety of Online Bank Verification
A lot of people are unsure about online bank verification when they hear about it for the first time. However, the more you know about online bank verification processes, the easier it is to appreciate how safe they are. Considering how many benefits they provide on top of that, online banking verification is often the best option available.
To learn more about how you can find the best options for online loans in Canada, reach out and get in touch with us here at any time!
