Sharing financial information can improve your business’s operations, boost your revenue and reduce expenses. It’s essential to be aware of the following considerations before making a decision about sharing your company’s financial data with outside third parties.
1. Verify that the that the Services are Legal
While certain use cases (such as closings of mortgages that require on demand access to potential lenders) work best when the consumer grants one-off access, others need to be able to tap into and share massive amounts of data over a long time. It is essential to examine the credibility of the company and the app, or the platform and its history in the field regardless of the approach. Look for reviews on third-party sites as well as app stores and media.
2. Think about the breadth of data Sharing
Experts and consumers are of the opinion that banks and fintech apps should modernize the ways they share customer account information in order to guard against security risks, such as hacking or identity theft. However, they’re not convinced that this will help because many people are still perplexed by the current notion of data sharing, which could feel read unwelcome and limit the possibility of gaining insights.
Fintechs and banks might provide a dashboard which allows customers to control the way in which 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 which accounts were shared and to monitor their settings using an interface.