Financial data shared with other parties can aid in improving your business operations, increase your revenue and decrease expenses. It’s important to take into consideration the following factors before making a decision to share your financial information with third parties.
1. Verify that the Services Are Legitimate
Some use cases (such a mortgage closing that requires on-demand access to an prospective lender) are more effective when the user grants only-once access, while other require the ability to tap into and share large amounts of information over a prolonged period of time. It is essential to examine the reputation of the firm as well as the app or the platform, and its history in the field, regardless of the approach. Find reviews on third-party websites, app stores, and other media.
2. Consider the Breadth of Data Sharing
Financial experts and go to the website consumers are of the opinion that financial technology, also referred to as fintech banks and apps must modernize their practices for sharing customer account information to avoid security risks, like hacking and identity theft. They’re also skeptical about whether this will be beneficial, as many people still feel confused by the current way of data sharing. This may feel like a snobbery and limit the potential for understanding.
Banks and fintechs may provide a dashboard that lets customers control the way their account information is shared with the apps they use, including budgeting apps, credit monitoring tools and even mortgage and home value tracking. For example, Wells Fargo, Chase, Citi and Plaid all let customers see the details of accounts shared with these services and monitor their settings from the dashboard.