Six Considerations Before Sharing Financial Data With Outside Parties

Financial data shared with other parties can improve your business operations, boost your revenue and decrease expenses. But, it’s crucial to remember the following six factors before making the decision to share your company’s financial data with external organizations.

1. Check to Make Sure that the Services are Legal

While some use cases (such as mortgage closings that require on-demand access to potential lenders) work best when the consumer grants only-once access, other cases require to be able to access and share large amounts of information over a prolonged period of time. Regardless of the approach it’s important to examine the company, app or platform’s reputation and follow its history in the field. Look for reviews on third-party websites, app stores, and other media.

2. Think about the wide range of data sharing

Financial experts and consumers are of the opinion that financial technology, also known as fintech banks and apps must improve their practices in sharing account information with customers to reduce security risks such as hacking and identity theft. However, they aren’t convinced that this will benefit, since many people still feel confused by the current approach to data sharing. This may feel like a snobbery and limit the potential for knowledge.

Fintechs and banks could provide a dashboard that enables customers to control how their information about their accounts is shared with services they use. This could include budgeting applications as well as credit monitoring software and even monitoring mortgages and home values. Wells Fargo and Chase allow customers to view the accounts that were shared and to monitor their settings on the dashboard.

more helpful hints