The sharing of financial data can assist you in improving your business operations and increase your revenue. It also helps reduce your costs. It’s important to look at the six factors below before deciding to share your financial information with third parties.
1. Check to Make Sure Services are Legitimate
Certain use cases (such a mortgage closing that requires instant access to an prospective lender) work best when the customer grants one-time access, while others require access to and share massive amounts of information over a prolonged period of time. Regardless of the approach it is essential to check the app, company or platform’s credibility and follow its history in the field. Check for reviews on third-party sites as well as app stores and media.
2. Think about the wide range of sharing of data
Experts in finance and consumers agree that banks and fintech apps must modernize the method they share account details to protect themselves from security risks, such as identity theft or hacking. They’re also sceptical that this will be beneficial, as 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.
Fintechs and banks could offer a dashboard to customers to control the way in which their information about their accounts is shared with services they use. This could include budgeting applications or credit monitoring software and even monitoring mortgages and home values. For example, Wells Fargo, Chase, Citi and Plaid all allow customers to see which accounts have been shared with these services and manage their settings from a dashboard.
