Six Considerations Before Sharing Financial Data With Outside Parties

Sharing financial information can assist you in improving your business operations and increase your profits. It can also lower your costs. However, it’s vital to be aware of the following considerations before making a decision about sharing your company’s financial data to external third parties.

1. Verify that the services are legitimate.

Certain scenarios (such a mortgage closing that requires access on demand to an prospective lender) are best served 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. It is essential to examine the reputation of the firm and the app, or the platform and its track record in the field regardless of the approach. Find reviews on third-party sites, app stores and media.

2. Think about the wide range of data sharing

Experts and consumers are of the opinion that banks and fintech apps need to modernize the method they share account details to avoid security risks such as hacking or identity theft. However, they’re skeptical that this will make a difference because many people are still confused by the current view of data sharing, which may feel unwelcome and limit the possibility of getting insights.

Fintechs and banks might offer a dashboard that lets customers manage the way that their account data is shared with the services they use, including budgeting tools, credit monitoring software and even home value and mortgage tracking. Wells Fargo and Chase allow customers to see which accounts have been shared and monitor their settings on an interface.

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