Six Considerations Before Sharing Financial Data With Outside Parties

The sharing of financial data can assist you in improving your business operations and boost your revenue. It can also reduce your expenses. It’s essential to remember the following six look at more info factors before deciding whether to share your company’s financial data with external entities.

1. Verify that the services are Legitimate

Although some use cases (such as closings on mortgages that require on-demand access to potential lenders) work best when the consumer can grant a only-once access, other cases require to be able to access and share large volumes of information over a longer time. Whatever the case it’s important to examine the company, app or platform’s reputation and follow its track record in the industry. Find reviews on third-party websites, app stores and other media.

2. Think about the vastness of data sharing

Financial experts and consumers believe that banks and fintech apps should modernize the method they share account data to prevent security risks, such as identity theft or hacking. However, they aren’t convinced that this will help as many people are uneasy about the current concept of data sharing, which may feel patronizing and restricts the potential for gaining insights.

Fintechs and banks might offer a dashboard to let users control the way their account information is shared with the tools they use, such as budgeting tools, credit monitoring software and even home value and mortgage tracking. Wells Fargo and Chase allow customers to see which accounts are shared and track their settings through an interface.