Six Considerations Before Sharing Financial Data With Outside Parties

Shared financial data can assist in improving your business’s operations, boost your profits and cut costs. But, it’s crucial to keep in mind the six points below when deciding whether or not to share the financial information of your business with external parties.

1. Check to Make Sure Services Are Legal

While some use cases (such as closings on mortgages that require immediate access to prospective lenders) work best when the consumer grants one-time access, other situations require to be able to access and share massive amounts of information over an extended period of time. Regardless of the approach it’s essential to look into the app, company or platform’s board meeting planning guide reputation, and keep track of its history in the field. Find reviews on third-party websites such as app stores, media and.

2. Think about the breadth of data Sharing

Experts in finance and consumers believe that banks and fintech apps need to modernize the way they share customer information about their accounts to prevent security risks, such as hacking or identity theft. They’re also skeptical about whether this will be beneficial, as many people still feel confused by the current approach to data sharing. This could be a feeling of patronizing and limit the potential for insights.

Fintechs and banks may provide a dashboard for customers to let customers manage the way their account information is shared with the tools they use, including budgeting tools, credit monitoring software and even mortgage and home value tracking. Wells Fargo and Chase allow customers to view which accounts have been shared with them and track their settings via the dashboard.