Sharing financial information can assist in improving your business’s operations, increase your revenue and reduce expenses. However, it’s vital to consider the six considerations below before deciding whether or not to share your financial data with outside entities.
1. Verify that the service is Legitimate
Some use cases (such a mortgage closing that requires access on demand to a potential lender) are best served when the consumer gives a one-time access. Other cases require access to and share large amounts of information over a long period of time. No matter what the method it is essential to check the app, company or platform’s reputation and track its history in the industry. Look for reviews on third party websites, app stores, and other media.
2. Consider the Breadth of Data Sharing
Financial experts and consumers agree that financial technology, or fintech banks and apps must improve their practices of sharing account data of customers to avoid security risks like hacking and identity theft. But they’re also skeptical that this will make a difference since many people are in awe of the current perception of data sharing, which could feel patronizing and restricts the potential for gaining insights.
Fintechs and banks may offer a dashboard to let customers manage the way their account information is shared with the apps they use, such as budgeting tools, credit monitoring applications and even mortgage and home value tracking. For example, Wells Fargo, Chase, Citi and Plaid all let customers see the accounts that have been shared with these tools and manage their settings from an account dashboard.