Sharing financial data can help you improve scanguard good or bad your business processes and increase your revenue. It also helps reduce your expenses. However, it’s vital to be aware of the six considerations below before deciding whether or not to share your company’s financial data with outside third parties.
1. Check to Make Sure Services Are Legitimate
While some use cases (such as closings on mortgages that require immediate access to a potential lender) are most effective when the consumer grants one-off access, others need to be able to access and share large amounts of information over a prolonged time. Regardless of the approach, it’s critical to review the company, app or platform’s credibility and follow its track record in the industry. Look for reviews on third-party websites including app stores, media and.
2. Consider the Breadth of Data Sharing
Financial experts and consumers agree that financial technology, also known as fintech banks and apps must update their methods of sharing customer account information to prevent security risks, like hacking and identity theft. But they’re also skeptical that this will benefit because many people are still perplexed by the current notion of data sharing, which can feel patronizing and restricts the possibility of getting insights.
Fintechs and banks might offer a dashboard to let users control the way their account information is shared with the tools they use, such as budgeting tools, credit monitoring software and even home value and mortgage tracking. For instance, Wells Fargo, Chase, Citi and Plaid all let customers know which accounts have been shared with these services, and to check their settings via their dashboard.
