Financial institutions produce a large amount of data, especially with the growing adoption of digital payment. The data they collect can be used to make better predictions and more accurate calculations. The data is personal and contains information about the individual. For this reason, laws and regulations, such as the GDPR in Europe or the California Consumer Privacy Act (US) limit the sharing of customer data by financial institutions.
Sharing financial data can be beneficial for several reasons, such as improved detection of fraud and speedier processing of applications. It also helps you gain access to a wider range of products and services, including credit and loans. It is essential to select an entity you can trust in the event that you decide to share your financial data. Reputable financial service and business providers can explain clearly the reason behind sharing your personal data, as well as with whom they will share it.
The most important factor in unlocking the full potential of financial data aggregation is to create an open and unifying data ecosystem that permits different users to execute different operations without unnecessary risks. The ability to securely access and process data in real time is essential as is having an understanding of each user’s role. To achieve this goal, you must implement effective data access controls that guarantee a balance between security and utility, with a focus on allowing live financial information to be transferred between departments and between companies while ensuring the rights of customers.