Six Considerations Before Sharing Financial Data With Outside Parties

Sharing financial data can help you improve your business operations and increase your profits. It can also reduce your costs. It’s important to look at the six factors below before making a decision to share your financial data with third party.

1. Verify that the services are legitimate.

Although some use cases (such as mortgage closings that require on-demand access to prospective lenders) work best if the customer is able to grant only-once access, other cases require to be able to access and share huge amounts of information over an extended time. No matter what the method it’s important to examine the app, company or platform’s reputation, and keep track of its history in the industry. Look for reviews on third-party websites as well as app stores and media.

2. Consider the breadth of sharing of data

Consumers and financial experts agree that financial technology, also referred to as fintech banks and apps must modernize their practices for sharing account information of customers to reduce security risks such as hacking and identity theft. However, they’re skeptical that this will help because a lot of people are confused by the current view of data sharing, which can be as a sham and hinders the potential for gaining insights.

Fintechs and banks could offer a dashboard that allows customers to control the way in which their account information is shared with the services they use. This could include budgeting applications as well as credit monitoring software and even monitoring mortgages and home values. For instance, Wells Fargo, Chase, Citi and Plaid all allow customers to see the accounts that have been shared with these services, and to manage their settings from their dashboard.