Six Considerations Before Sharing Financial Data With Outside Parties

Shared financial data will help you improve your business operations and increase your revenue. It can also help reduce your costs. It’s important to look at the six elements listed below prior to making a decision to share your financial information with third-party companies.

1. Verify that the service is Legitimate

Some use cases (such a mortgage closing that requires immediate access to a prospective lender) are more effective when the customer grants one-time access. Other cases require the ability to access and to share large volumes information over a prolonged period of time. No matter what the method it’s important to examine the company, app or platform’s reputation and track its history in the field. Look for reviews on third-party websites such as app stores, media and.

2. Think about the breadth of data Sharing

Financial experts and consumers are of the opinion that financial technology, also known as fintech banks and apps must modernize their practices for sharing customer account information to help prevent security https://www.doncentholdingsltd.com/keep-share-financial-data-using-top-data-room-solutions risks, such as hacking and identity theft. However, they’re skeptical that this will be helpful since many people are in awe of the current perception of data sharing, which can feel as a sham and hinders the potential for gaining insights.

Banks and fintechs may provide a dashboard for customers to let customers decide how their account data is shared with services they use, including budgeting tools, credit monitoring software and even mortgage and home value tracking. For instance, Wells Fargo, Chase, Citi and Plaid all let customers know what accounts have been shared with these tools and monitor their settings from their dashboard.