Sharing financial data can assist you in improving your business operations and increase your profits. It can also help reduce your costs. However, it’s vital to remember the following six factors before deciding whether or not to share your company’s financial data with outside third parties.

1. Verify that the that the Services are Legal

Some use cases (such a mortgage closing that requires on-demand access to a potential lender) work best when the customer grants one-time access, whereas others require the ability to access and to share large https://www.doncentholdingsltd.com/annual-board-meeting-agenda-planning-guide volumes information over a long period of time. Regardless of the approach it is essential to check the app, company or platform’s credibility and follow its history in the industry. Look for reviews on third-party sites as well as app stores and media.

2. Take into account the range of data sharing

Consumers and financial experts agree that banks and fintech apps need to modernize the methods they share customer account details to protect themselves from security risks like identity theft or hacking. However, they aren’t convinced that this will benefit, since many people still feel confused about the current method of data sharing. It can be perceived as a patronizing approach and hinder the possibility of knowledge.

Fintechs and banks might provide a dashboard for customers to let customers control the way in which their account information is shared with the services they use, such as budgeting tools, credit monitoring apps and even home value and mortgage tracking. For instance, Wells Fargo, Chase, Citi and Plaid all allow customers to view which accounts have been shared with these services and to manage their settings from their dashboard.