Six Considerations Before Sharing Financial Data With Outside Parties

Financial data shared with other parties can aid in improving your business operations, increase your revenue and reduce expenses. It’s important to take into consideration the following factors before making the decision to share your financial information with third party.

1. Verify that the service is legitimate.

While certain scenarios (such as closings of mortgages that require on demand access to potential lenders) work best if the consumer is able to grant one-time access, other situations require to be able to tap into and share massive amounts of information over a prolonged time. It is important to verify the reputation of the company and the app, or the platform, and its history in the field regardless of the approach. Look for reviews in third-party websites including app stores, media and.

2. Take a look at the breadth of data Sharing

Experts in the field and consumers are of the opinion that financial technology, or fintech banks and apps must improve their practices of sharing account data of customers to help prevent security risks, such as hacking and identity theft. They’re also skeptical that this will make a difference, as many people still feel confused about the current method of data sharing. This can feel patronizing and limit the potential for understanding.

Fintechs and banks can provide a dashboard that lets customers manage the way their account information is shared with the apps they use, including budgeting tools, credit monitoring applications and even mortgage and home value tracking. Wells Fargo and Chase allow customers to see which accounts were shared and to monitor their settings on an interface.

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