Six Considerations Before Sharing Financial Data With Outside Parties
Shared financial data can aid in improving your business’s operations, boost your profits and cut costs. But, it’s crucial to remember the following considerations before making the decision to share the financial information of your business with external third parties.
1. Check to Make Sure Services Are Legitimate
Some use cases (such a mortgage closing that requires immediate access to a prospective lender) work better when the consumer grants a one-time access, while others require access to and to share large volumes information over a prolonged period of time. Regardless of the approach, it’s critical to review the app, company or platform’s reputation and follow 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
Financial experts and consumers are of the opinion that banks and fintech apps must modernize the way they share customer account data to prevent security risks like hacking or identity theft. However, they’re skeptical that this will make a difference because a lot of people are perplexed by the current notion of data sharing, which can be patronizing and restricts the possibility of gaining insights.
Fintechs and banks can offer a dashboard that lets users control the way in which their account information is shared with the tools they use, including budgeting tools, credit monitoring apps and even mortgage and home value tracking. For instance, Wells Fargo, Chase, Citi and Plaid all allow customers to see what accounts have been shared with these tools and monitor their settings through a dashboard.
