Six Considerations Before Sharing Financial Data With Outside Parties

Sharing financial data with others can improve your business operations, boost your revenue and reduce expenses. It’s important to consider the six elements listed below prior to deciding to share your financial information with third parties.

1. Verify that the services are Legitimate

Some use cases (such a mortgage closing that requires access on demand to a potential lender) work best when the user grants one-time access, whereas others require access to and share massive amounts of information over a long period of time. No matter what the method it is essential to check the company, app or platform’s reputation, and keep track of its history in the field. Look for reviews on third-party websites, app stores and other media.

2. Take a look at the breadth of data Sharing

Consumers and experts are of the opinion that financial technology, or fintech, apps and banks should modernize their practices for sharing account data of customers to reduce security risks such as hacking and identity theft. They’re also sceptical that this will benefit, since many people still feel confused about the current method of data sharing. This could be a feeling of patronizing and limit the potential for understanding.

Banks and fintechs might offer a dashboard to customers to control the way in which their account information is shared with the services they use. This could include budgeting applications or credit monitoring software and even monitoring mortgages and home values. For instance, Wells Fargo, Chase, Citi and Plaid all let customers see the accounts that have been shared with these tools and monitor their settings through an account dashboard.

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