Six Considerations Before Sharing Financial Data With Outside Parties

Shared financial data can improve your business operations, increase your profits and decrease expenses. It’s important to take into consideration the following six aspects before deciding to share your financial information with third parties.

1. Verify that the services are Legitimate

Certain scenarios (such a mortgage closing that requires instant access to a potential lender) work better when the customer grants one-time access. Other cases require the ability to tap into and share massive amounts of information over a prolonged period of time. It’s important to check the credibility of the company as well as the app or the platform, and its history within the industry regardless of the approach. Check for reviews on third-party sites including app stores, media and.

2. Take a look at the breadth of data Sharing

Consumers and financial experts agree that banks and fintech apps should modernize the ways they share customer account information in order to avoid security risks such as hacking or identity theft. However, they aren’t convinced that this will make a difference as many people are confused by the current view of data sharing, which can feel like a patronizing attitude and limits the possibility of getting insights.

Fintechs and banks can offer a dashboard that lets users control how their account data is shared with services they use, including budgeting tools, credit monitoring apps and even home value and mortgage tracking. Wells Fargo and Chase allow customers to view which accounts are shared and track their settings on a dashboard.