Shared financial data can assist in improving your business’s operations, boost your profits and decrease expenses. However, it’s important to keep in mind the following six factors before making a decision about sharing your company’s financial data to external organizations.

1. Check to Make Sure that the Services are Legal

While some use cases (such as closings on mortgages that require on-demand access to a potential lender) work best when the customer is able to grant one-time access, others require to be able to tap into and share large amounts of information over a longer time. It is essential to examine the reputation of the business, the app, or the platform and its history within the industry, regardless of the approach. Look for reviews on third-party sites as well as app stores and media.

2. Think about the range of data Sharing

Consumers and financial experts agree that fintech and banks applications should improve the method they share account details to avoid security risks, such as identity theft or hacking. They’re also skeptical that this will make a difference, as many people still feel confused by the current approach to data sharing. This could be a feeling of patronizing and reduce the potential for insight.

Fintechs and banks might provide a dashboard that lets users control the way their account information is shared with services they use, such as budgeting tools, credit monitoring software and even mortgage and home value tracking. For instance, Wells Fargo, Chase, Citi and Plaid all let customers see the details of accounts shared with these services and manage their settings from an account dashboard.