Six Considerations Before Sharing Financial Data With Outside Parties

Published in 22 de outubro de 2023 by

Sharing financial data with others can aid in improving your business’s operations, boost your profits and cut costs. It is important to think about the following six aspects before making a decision to share your financial information with third-party companies.

1. Verify that the Services Are Legitimate

While some use cases (such as closings on mortgages that require immediate access to potential lenders) work best when the customer is able to grant one-time access, others require to be able to tap into and share huge amounts of data over a long period of time. No matter what the method, it’s critical to review the app, company or platform’s reputation, and keep track of its history in the industry. Look for reviews on third-party sites, app stores and media.

2. Think about the wide range of data sharing

Experts and consumers agree that banks and fintech apps should modernize the methods they share customer account information in order to avoid security risks, such as hacking or identity theft. However, they’re not convinced that this will help because many people are still perplexed by the current notion of data sharing, which can feel patronizing and restricts the possibility of getting insights.

Fintechs and banks may provide a dashboard for customers to let customers decide the way that their account data is shared with the apps they use, including budgeting tools, credit monitoring applications and even home value and mortgage tracking. Wells Fargo and Chase allow customers to view the accounts that have been shared and monitor their settings through an interface.