Six Considerations Before Sharing Financial Data With Outside Parties

Sharing financial information can improve your business’s operations, increase your revenue and reduce expenses. It is important to think about the six elements listed below prior to you decide to share your financial information with third parties.

1. Verify that the Services Are Legal

Some use cases (such a mortgage closing that requires access on demand to an prospective lender) are best served when the consumer grants a one-time access. Other cases require the ability to tap into and to share large volumes information over a prolonged period of time. It is crucial to look into the reputation of the business and the app, or the platform and its reputation in the field regardless of the approach. Look for reviews on third-party websites, app stores and media.

2. Consider the breadth of sharing of data

Consumers and financial experts agree that financial technology, or fintech, apps and banks should improve their practices in sharing account data of customers to avoid security risks, like hacking and identity theft. But they’re also skeptical that this will help because a lot of people are uneasy about the current concept of data sharing, which can feel patronizing and restricts the possibility of gaining insights.

Fintechs and banks might 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 and credit monitoring software and even tracking mortgages and home values. Wells Fargo and Chase allow customers to view the accounts that have been shared and monitor their settings through an interface.

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