Six Considerations Before Sharing Financial Data With Outside Parties

Sharing financial data can aid you in improving your business processes and increase your revenue. It can also lower your costs. It is important to think about the following six aspects before making the find decision to share your financial data with third parties.

1. Verify that the service is Legitimate

Certain scenarios (such a mortgage closing that requires on-demand access to an prospective lender) work better when the consumer gives a one-time access, whereas others require the ability to access and to share large volumes information over a long period of time. It is crucial to look into the credibility of the company, the app, or the platform, and its history within the industry regardless of the approach. Look for reviews in third-party sites, app stores and media.

2. Take a look at the breadth of data Sharing

Experts in the field and consumers are of the opinion that financial technology, also known as fintech banks and apps must modernize their practices for sharing customer account information to reduce security risks, such as hacking and identity theft. But they’re also skeptical that this will help because many people are still in awe of the current perception of data sharing, which could feel patronizing and restricts the potential for gaining insights.

Banks and fintechs may offer a dashboard that lets customers manage the way their account information is shared with the services they use, such as budgeting tools, credit monitoring applications and even home value and mortgage tracking. Wells Fargo and Chase allow customers to view the accounts that were shared and to monitor their settings using the dashboard.