Six Considerations Before Sharing Financial Data With Outside Parties

Shared financial data can help improve your business operations, boost your revenue and decrease expenses. However, it’s vital to keep in mind the six considerations below before deciding whether to share the financial information of your business with outside parties.

1. Verify that the service is Legitimate

Although some use cases (such as closings on mortgages that require immediate access to a prospective lender) are most effective when the consumer grants one-off access, others need to be able to access and share massive amounts of information over a longer time. No matter what the method, it’s critical to review the company, app or platform’s credibility and follow its history within the industry. Check for reviews on third-party websites, app stores and media.

2. Take into account the range of sharing of data

Consumers and financial experts are of the opinion that doncentholdingsltd.com/ financial technology, or fintech, apps and banks should improve their practices in sharing account data of customers to avoid security risks, such as hacking and identity theft. They’re also skeptical about whether this will benefit, since many people are still confused about the current method of data sharing. This could be a feeling of patronizing and limit the potential for insight.

Fintechs and banks could provide a dashboard that enables customers to control the way in which their information about their accounts is shared with the services they use. This could include budgeting applications, credit monitoring software, and even monitoring mortgages and home values. For example, Wells Fargo, Chase, Citi and Plaid all allow customers to view what accounts have been shared with these services, and to monitor their settings from their dashboard.