Shared financial data will aid in improving your business operations and boost your profits. It can also lower your costs. It’s important to look at the six elements listed below prior to deciding to share your financial information with third parties.

1. Verify that the services are legitimate.

Some use cases (such a mortgage closing that requires instant access to a prospective lender) work better when the consumer gives a one-time access, while others require the ability to access and to share large volumes information over a prolonged period of time. It’s important to check the reputation of the company as well as the app or the platform, and its history within the field regardless of the approach. Look for reviews in third-party sites as well as app stores and media.

2. Think about the breadth of data Sharing

Experts in the field and consumers are of the opinion that financial technology, also referred to as fintech, apps and banks should improve their practices in sharing account data of customers to reduce security risks, like hacking and identity theft. However, they aren’t convinced that this will benefit, since many people still feel confused about the current method of data sharing. This could be a feeling of patronizing and reduce the potential for understanding.

Banks and fintechs may offer a dashboard that lets customers control how their account data is shared with the apps they use, such as budgeting tools, credit monitoring applications and even home value and mortgage tracking. For instance, Wells Fargo, Chase, Citi and Plaid all let customers know which accounts have been shared with these services and monitor their settings through their dashboard.

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