Financial data shared with other parties can aid in improving your business’s operations, boost your profits and decrease expenses. However, it’s important to consider the six points below when deciding whether to share the financial information of your business with external organizations.
1. Check to Make Sure Services Are Legal
While some use cases (such as mortgage closings that require on-demand access to prospective lenders) are most effective when the consumer can grant a one-off access, others need to be able to tap into and share large volumes of information over a prolonged time. Whatever the case it’s essential to look into the app, company or platform’s reputation, and keep track of its history in the field. Check for reviews on third-party websites, app stores, and other media.
2. Take a look at the breadth of data Sharing
Financial experts and consumers believe that banks and fintech apps must modernize the method they share information about their accounts to guard against security risks like identity theft or hacking. However, they’re skeptical that this will help since many people are confused by the current view of data sharing, which could feel like a patronizing attitude and limits the possibility of gaining insights.
Fintechs and banks may offer a dashboard that lets customers control the way their account information is shared with the apps they use, such as budgeting tools, credit monitoring applications and even home value and mortgage tracking. Wells Fargo and Chase allow customers to view which accounts have been shared and monitor their settings through the dashboard.