Six Considerations Before Sharing Financial Data With Outside Parties

Financial data shared with other parties can help improve your business operations, increase your revenue and decrease expenses. However, it’s vital to be aware of the following considerations before deciding whether or not to share your company’s financial data with external third parties.

1. Check to Make Sure that the Services are Legal

While certain scenarios (such as mortgage closings that require on-demand access to potential lenders) are most effective when the customer is able to grant one-time access, others require to be able to access and share huge amounts of information over a longer time. Regardless of the approach it’s important to examine the app, company or platform’s credibility and follow its history in the field. Check for reviews on third-party websites, app stores and other media.

2. Take into account the range of data sharing

Consumers and experts agree that financial technology, or fintech, apps and banks should modernize their practices for sharing account information with customers to reduce security risks like hacking and identity theft. They’re also skeptical about whether this will help, because many people are still confused by the current system of data sharing. This may feel like a snobbery and hinder the possibility of knowledge.

Fintechs and banks can provide a dashboard that lets customers decide the way their account information is shared with the apps they use, including budgeting tools, credit monitoring applications and even home value and mortgage tracking. Wells Fargo and Chase allow customers to view the accounts that are shared and track their settings via an interface.