Six Considerations Before Sharing Financial Data With Outside Parties

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Sharing financial data can help you improve your business operations and increase your revenue. It can also lower your costs. It is important to think about the following six aspects before deciding to share your financial information with third party.

1. Check to Make Sure Services Are Legal

While certain scenarios (such as mortgage closings that require on-demand access to potential lenders) work best if the consumer can grant a only-once access, other cases require to be able to access and share large amounts of information over an extended period of time. Whatever the case, it’s critical to review the company, app or platform’s reputation and track its history in the field. Look for reviews on third-party sites such as app stores, media and.

2. Think about the wide range of sharing of data

Consumers and financial experts are of the opinion that banks and fintech apps must modernize the methods they share customer account information in order to prevent security risks like identity theft or hacking. They’re also skeptical about whether this will make a difference, as many people still feel confused by the current way of data sharing. This may feel like a snobbery and limit the potential for insights.

Fintechs and banks may offer a dashboard to let customers manage the way that their account data is shared with the apps they use, including budgeting tools, credit monitoring apps and even mortgage and home value tracking. For example, Wells Fargo, Chase, Citi and Plaid all allow customers to see which accounts have been shared with these services, and to check their settings via an account dashboard.

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